John MacDonald: Jetty restoration group's zero-interest pipedream

I don’t know if I’m going to make any friends in Governors Bay, especially with the people involved with the Governors Bay Jetty Restoration Trust.  

Because I think their call that the city council stop charging them interest on a loan it gave them to get the project across the line is, at best, unrealistic. They are dreaming.   

I remember the first time I went to the rebuilt jetty after it was re-opened last year. It was a beautiful evening. Very still. One of those brilliant evenings on the peninsula. And I was really impressed.  

I’d been to the old jetty plenty of times —that was before it was damaged in the earthquakes— but the new jetty was quite something. Still is quite something.   

If you’ve been there, you’ve probably walked up-and-down reading the plaques with the names of all the people and the outfits that gave money to the project. Who only gave money because of those volunteers who decided that the community was going to get its jetty back and who did an absolutely brilliant job making it happen.   

Especially when you consider that the city council originally thought it would cost $7.8 million, and these volunteers managed to get it done for $3.8 million. So around about half as much as the council was talking about.   

They did it after the council decided that, because it was going to cost so much, it wasn’t worth doing.   

Not that it wiped its hands completely, it sold the jetty to the trust for $1 and chipped-in $1.75 million of ratepayer money. It also gave the trust an $850,000 loan at 4% for four-and-a-half years.  

So the jetty is back. Everyone happy.   

Well, not quite. Because after all the heart and soul these volunteers put into raising the money to get it re-built, they’ve run out of puff.  

They’ve worked out that, just to pay the interest on the loan from the city council, they’d have to have the equivalent of a fundraising sausage sizzle every weekend for the next three years. That’s just to pay the interest.  

So this week they’ve been to the council, asking it to drop the interest on the loan. The council has said “no can do”. And I’m with the council.  

For the exact same reason that the council has given to the jetty people – that, if it agreed to flag the interest on their loan, it would set a dangerous precedent.  

Not that the city council is unanimous on this one – Councillor Aaron Keown reckons the council should drop the interest on the loan. He thinks that, instead of setting a dangerous or a problematic precedent, it would actually encourage more community groups to take on these types of projects.   

His view is that if you look at the jetty project, the volunteers managed to get the rebuild done for half the amount the council thought it was going to cost. And he’s saying today that “if it delivers infrastructure at half the price, it is good precedent setting.” 

Which Aaron, with respect, is a pretty weak argument.   

It’s a weak argument because if the council gives on this one, not only will it have other outfits that it’s leant money to knocking on the door wanting their interest waived, it will also have others applying for council loans with 0% interest from the get-go.  

There will be a stampede of people wanting free money from the council, and it will be pretty hard for the council to say no if it gives-in and flags the interest on the loan for the Governors Bay jetty.  

I mean I get what this volunteer group is saying – that after 10 years working on this project, they’re worn out. But they knew when they took out the loan with the council, what the conditions were.  

They knew the terms. It’s not like you or I can go to the bank asking them to stop charging us interest on our mortgage because we’re a

Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Morning's Podcast with John McDonald
from Newstalk ZB.

Speaker 2 (00:13):
I don't know. I don't no, I don't know. I
suspect not, but I don't think I'm going to make
any friends in Governor's Bay to day, especially with the
people behind the rebuild of the jetty, the people who
have been involved with the Governor's Bay Jetty restoration trust.

(00:34):
I don't think I'm going to make friends with them
because I think they're call that the city Council stopped
charging them interest on alone. It gave them to get
the project across the line. I think at best it
is unrealistic. They are dreaming. I'll tell you why I
think that shortly. I do remember, though, the first time
I went to the rebuilt jetty after it was reopened

(00:56):
last year. It was September last year it was reopened,
so it wasn't long after that might have been it's
probably October, I think, And it was a beautiful evening
early spring. It was very still, was one of those
brilliant evenings on the peninsula, and I was impressed. I mean,
I've been to the old Jetty plenty of times. That

(01:17):
was before it was damaged in the earthquakes, but the
new jetty was quite something still is quite something. If
you've been there, you probably walked up and down reading
the plarks with the names of all the people and
all the outfits that gave money to the project and
who only gave money. You can't forget this. They only
gave money because of those volunteers who decided that the

(01:39):
community was going to get the Jedi back and who
did an absolutely brilliant job making it happen, especially when
you consider this, the city council originally thought it would
cost seven point eight million dollars and these volunteers managed
to get it done for three point eight million, so
around about half as much as the council was talking about.

(02:01):
And they stepped in after the council decided that because
it was going to cost so much, of well, because
they thought it was going to cost so much, it
wasn't worth doing. Not that the council wiped its hands
completely though. That solved. The jetty to the trust for
a dollar chipped in one point seven five million dollars
of rate Pal money one point seventy five million, and

(02:22):
it also gave the trust an eight hundred and fifty
thousand dollars loan at four percent for four and four
and a half years. So money came, donations, council money,
council loan, the Jeties back. Everyone happy. Not quite, as
we're finding out today, because after all the heart and
soul that these volunteers put into raising the money to

(02:44):
get it rebuilt, they've run out of puff is no
other way to put it. They've run out of puff
ten years worth. And they've worked out that just to
pay the interest on the loan from the city Council,
they'd have to have the equivalent of a fundraising sausage
says well every weekend for the next three years. That's
just to pay the interest, which is why they've been

(03:04):
to the council this week asking it to drop the
interest on the loan, and the council has said no,
can do. And I'm with the council for the exact
same reason that the council has given to the Jetti people,
that if it agreed to flag the interest on their loan,
it would set a dangerous precedent or a problematic precedent.

(03:26):
Not that, not that the council is unanimous on this.
One councilor Aaron Kew and he reckons the council should
drop the interest on the lone. He reckons that instead
of it's setting a dangerous or a problematic precedent, it
would actually encourage more community groups to take on these
types of projects. Kind of weird his views that if
you look at the Jedi project, the volunteers who managed

(03:48):
to get the rebuild done for half the amount of
the council thought it was going to cost, he said
today will quite what he says. He says, if it
delivers infrastructure at half the price, it's a good precedent
setting end of quote, which Aaron with respect, I'll say
it as politely as I can. It's a pretty weak argument.

(04:11):
It's a weak argument because if the Council gives in
on this one, not only will it have other outfits
that it's lent money to knocking on the door wanting
their interest waived as well, it'll also have others applying
for council loans with zero percent interest. I want zero
percent from the get go. There'll be a stampede of
people wanting free money from the council and it will

(04:32):
be pretty hard for the council to say no. If
it gives in and flags the interest on this loan
for the Governor's bijetti. I mean, I get what the
volunteers are saying. I get what this volunteer group is
saying that after ten years on the project they're worn out.
I get that. But and here's the butt. They knew

(04:55):
when they talk out the loan with the council what
the conditions were. They knew the terms. You know. It's
not like you and I could go to the bank
asking them to stop charging his interest on the mortgage. Oh,
we're a bit tired because it means we have to
work more than we really want to. I mean, the
bank would tell us where to go, wouldn't it, Which
is what the council is doing too, as it should

(05:17):
to the Jetty restoration people. I mean it takes boxes. Yes,
the jetty is an asset for the community. Yes, the
fact that it's been rebuilt much cheaper than what the
council thought it would cost us brilliant. Yes, it is
another fantastic example of a community recovering from the quakes.
Taxt all of those boxes and probably more. But that
still doesn't change my view that the Jetty restoration people

(05:40):
need to accept the conditions they signed up to when
they took this line up with the council. It doesn't
change my view that the council is absolutely doing the
right thing refusing to stop charging them interest.

Speaker 1 (05:52):
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