Media Release
28 August 2013
HBRIC Ltd Directors conflict of interest & remuneration

The new Hawke’s Bay Regional Council appointed after October’s election will decide whether to take action over any perceived conflicts of interest for councillor-directors on the board of the Hawke’s Bay Regional Investment Company Limited (HBRIC Ltd).

Legal advice sought by Council confirmed there is no actual conflict of interest for councillor-directors on the board of the HBRIC Ltd; however the council requested a further report on options to reduce the perception of conflict of interest for councillor-directors in relation to HBRC decisions on the Ruataniwha Water Storage Scheme.

That report was considered at today’s council meeting and explored a range of options Council could take to reduce the perceived conflict of interest, including replacing councillor directors, total abstention of councillor directors at Council meetings when the Ruataniwha Water Storage Scheme is being considered and the status quo until after local body elections.

Council agreed to retain the status quo until after local body elections and recommended the incoming Council consider the issue during its consideration of the appointment of councillor-directors for HBRIC Ltd following October’s elections.

Meanwhile, Council voted to increase the fees paid to the independent directors of HBRIC Ltd. The chairman’s fee will increase from $21,500 to $54,000, while the base director fee will be doubled to $30,000.

Councillor-Directors on the board will continue to receive no directors’ fees.

ENDS

© Scoop Media