$1.2M grant debated

Press, 1 March 1989, Page 39

$1.2M grant debated

PA Nelson Allocation of $1.2 million of Game Industry Board funds to a joint venture with Challenge Venison has sparked debate over whether the movement of the funds is illegal. Four board members say the the board has better things to do with its money.

Mr Alan Ferens, one of four board members seeking legal advice, said it was an imprudent investment. “The financial data is being put together by people who don’t have a full understanding of export marketing,” Mr Ferens said. The Deer Farmers’ Association announced on February 16 that it had formed a joint venture with Venison New Zealand Co-operative and Challenge Venison.

The venture was partly funded by a $1.2 million grant from the Game Industry Board. The grant had been approved at a board meeting on February 15. But Mr Ferens said information on the joint venture was only tabled at the February 15 meeting, not three days

before as was the correct procedure.

Financial information tabled was inadequate and showed only a summary, he said.

There was no accountability back to the board for the grant either, he said.

Mr Ferens and other board members have called for a referendum, so that deer farmers could decide if they wanted to go into a joint venture. The Minister of Agriculture, Mr Moyle, has been asked to clarify the legality of the grant. Mr Ferens, who walked out of the February 15 meeting, said the board did not have a quorum when it approved the grant. Not less than three farmer members and not less than three of the total number of industry and exporter members were needed, he said. But the approval had been granted by only five members.

Game Industry Board general manager Mr Mike Pattison, said the board could easily fund the grant from reserves, as it had an annual income of $2 million, and similar expenditure.