News

Community Trust Makes $12.7 Million Available To The Region

More than $12.7 million will be made available to the Eastland region over the next five years as part of the Eastland Community Trust's community investment strategy announced today.

The strategy, released as part of the Trust's annual Statement of Intent and Budget, is a new undertaking by the Trust which has, until now, been focused primarily on growing reserves and backing commercial ventures that generate income.

Now, rather than grants, under its new five-year community investment strategy the Trust will release up to 50% of its post tax income for investment in projects which develop or enhance economic growth or assist in transforming this region.

Chairman Gary Alexander said the Trust's objective is to grow income and reserves and to allow a maximum amount of funding to be available in any one year. This figure will be directly linked to the balance of liquid funds in the reserve portfolio.

"In essence the larger the opening balance of liquid funds, the greater the percentage available for community investment."

For the year ending 31 March 2009 the trustees have allocated a maximum of $1.7 million including all sponsorships and projects. The allocation of any, or all, of the intended funds will be at the trustees' discretion.

Over the five year period April 1, 2008 to March 31, 2013 the total estimated post tax net income for the Trust is projected to amount to $25.4 million and, as such, funds available for community investment and sponsorships would be $12.7 million.

Mr Alexander said the estimates are based on best projections but can change with the financial performance of the Trust. Any amounts available for community investment are always at the discretion of the trustees and subject to financial considerations. It is envisaged that funds may be carried over from year to year if appropriate projects are not available in any one year or the trustees wish to hold money over to fund a particular future project.

In all cases projects funded wholly or partly by the trust will have stringent reporting and analysis of community benefits accruing from the particular project. Smaller projects, in terms of funds required, are likely to have a less hands on approach by the trust than larger projects.

 

Sponsorships will form a minor part of the Trust's distributions and will be limited to a sum of $50,000 per annum in the first year and grow by 5% per year. Individual sponsorships shall be limited to $5,000 maximum per successful applicant.

The Trust has already made its first community investment by allocating $100,000 per year for three years into facilitating Air New Zealand Q300 flights into Gisborne.

Mr Alexander said Gisborne needed more flight capacity to capitalize on encouraging increased visitors, increased availability for business trips and to assist economic growth. The Trust could see there was considerable flow on benefit to the community and the airport in having the additional seat capacity however this had failed to materialise due to differences related to airport charges.

"We expect our investments, through the Eastland Group, to be run on a commercial basis and to earn appropriate revenue. There is a commercial reality as to the level of revenue necessary to run the Gisborne airport which was unlikely to be achieved in the current environment without assistance from the Trust. In order to expedite the Q300 service the Trust understood it would have to make funding available to the airport to make it happen now," said Mr Alexander.

"We recognize air services are a vital link for a remote region like Eastland and the increased seat numbers will have a number of advantages - both business and pleasure."

 

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For more information please contact ECT chairman Gary Alexander on (027) 444 7494.