Money given to restock rivers can of worms for regional Fish & Game council
Sunday, 30 September 2018
James McIntyre wanted his $525,000 bequest to restock Canterbury's Waimakariri and Rakaia rivers with salmon.
Instead, part of the money was spent on building Fish & Game's new Christchurch office.
The use of McIntyre's bequest was among the reasons for a written complaint to Fish & Game's national council in May by five North Canterbury councillors – Craig Maylam, Ken Lee, Charles Smith, Alan Strong and Phil Musson.
The group raised concerns about financial transparency within the North Canterbury branch and called for an immediate investigation, which resulted in a review by former assistant auditor-general Bruce Robertson.
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After receiving the bequest in two payments earlier this year, just under $50,000 was transferred into the North Canterbury council's building account. Those behind complaint say that was inappropriate.
Fish & Game built a new office in Johns Rd, Harewood, which opened in September last year. The property has a rateable value of $1.25 million.
McIntyre, who had no children, asks in his bequest that a member of the NZ Salmon Anglers Association be present when Fish & Game make any decision on using the money and that it be used to restock the Waimakariri and Rakaia rivers with salmon.
A leaked draft of of Robertson's report reveals the bequest was discussed at two council meetings but Robertson could find no record of a vote taken to approve some of the money being moved into the council's building account.
The report says the bequest was first discussed at a meeting in August last year, when North Canterbury chairman Trevor Isitt told those present he had received legal advice that the council was not bound by the estate's wishes.
It was discussed again at meetings on April 11 and 18 this year, after the bulk of the amount – $500,000 – was received by the council on March 7. The transfer into the building account happened on March 13.
In his report, Robertson says a reasonable reading of the relevant paragraph in the bequest shows McIntyre wanted the proceeds of his estate to be used for restocking the Waimakariri and Rakaia rivers. The five complainants considered the use that money for the head office building morally against the benefactor's wishes.
McIntyre did leave its use legally open by using the phrase 'without imposing any trust' in his bequest, Robertson's report says.
Isitt said Robertson's review was a very early draft that had been distributed to affected parties for their comments and it was likely to be a long way from the final version.
He said it was confidential, which restricted what he could say, other than it contained material that would be amended.
Two separate pieces of legal advice supported the council's handling of McIntyre's bequest, Isitt said.
The report also notes that interest from the bequest for the current year – estimated at $16,875 – was gifted to the Water and Wildlife Habitat Trust for its Fish in Schools programme, although the rest of the funds are still intact.
Robertson's report raised concerns about the council's accounting processes, which he said lacked transparency.
In the past two years there was a 'disturbing trend' where the budget surplus combined was $163,238, while the actual result was a loss of $428,085.
A review of the council's annual reports for those years showed some significant expenditure was not included in the budget, he said, with unbudgeted items rationalised as either being non-cash or spending from reserves.
Robertson said that there had been a near total breakdown in trust and confidence within the North Canterbury Fish & Game Council.
There were clear divisions among council members and the quality of the working relationship between them was low.
Prospects of reconciling those views were limited, he said, and unless an approach could be developed that enabled consensus and a new vision for the council to be reached, it was likely problems would continue – even taking into account the council elections that began on September 20 and close in mid-October.
In his report, Robertson says it would be wise to consider appointing an independent chairman to the council to help it agree on a unified approach and a coherent pathway forward.
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