Unanimous council support for quarry purchase

Ruapehu Bulletin, Volume 13, Issue 636, 14 May 1996, Page 2

Unanimous council support for quarry purchase

Following a meet ing of full coun cil, held in committee recently, to discuss the proposed purchase of Byford's quarry in Taumarunui, it was confirmed that the Ruapehu District Council would proceed with negotiations to buy the quarry and raise a loan of $1.75 million to finance the purchase. This decision followed an earlier meeting at which conditional approyal was given, dependent upon the due diligence process being completed satisfactorily. The Bulletin spoke with Ruapehu District Council mayor Weston Kirton and

chief executive Cliff Houston after the meeting and was told that the vote to proceed with negotiations to buy the quarry had been unanimous following a "full and frank contribution by all councillors to the discussidn". They said the proposed purchase had been very thoroughly evaluated and the conclusion was that it would be a very profitable investment, with figures indicating a pre-tax profit in the vicinity of $300,000$400,000 per year. Mr Houston said Byfords had shown a "marked preference" to sell the quarry to the council rather than to any other company or organisation outside the district. If the quarry, which supplies most of the roading metal to Ruapehu ConstructionLimited (RCL), was not bought and controlled by council, through its planned trading company Ruapehu Quarries Limited (RQL), a "stranglehold" could be applied to council and its ratepayers. Mr Kirton said the quarry

would be a "self-funding operation and rates will not be affected". He said the quarry is a very profitable operation at the moment and there are other players in the market so it is important to acquire the facility in order to ensure a continuing supply of metal at a competiti ve price (currently costing council about $700,000 per year). Amongits customers will be Byfords Limited, who want to concentrate their business around their own construction company. "Byfords and RCL have already established a good working relationship and that would continue when the quarry changes hands", said Mr Houston. He said that council must

continue to seek alternative sources of revenue in order to maintain its present level of acti vity because, with the steady decrease in population within the district (with the exception of Ohakune) there was a coiresponding reduction of revenue from rates. In seeking to raise a loan of $ 1 .75 million council had called for public submissions and objections as part of the consultative process. At the meeting, held Wednesday 1 May, it was announced that only 185 signatures had been obtained opposing the loan, much less than the 15 per cent or ratepayers required to force the council to seek other means of funding the project.