More Feedback Required By Great South Board On Future Funding

Great South will receive extra money from the Invercargill City Council for both core funding and contract work, in line with the increased cost of living, but they expect to see more outcomes moving forward. Related: Great South Defends Position Oat Milk Factory Relocation

Shareholders in the company need feedback on their ‘letter of expectation’ relating to funding by the end of next month.

Following a lengthy discussion on the failure of Great South to secure the oat milk factory in Southland, Mayor Clark was critical, saying the 12% increase they were asking for didn’t sit well with him.

A lot of the projects they were wanting continued funding on were built around traditional work done, and gave an example of housing, “where there are no outcomes – all they do is collect data and reports.”

“I just expect them to cut their cloth,” he added.

Council CEO Michael Day sent an apology in advance to Great South about the comments around funding, and said from looking at its annual reports and statement of intent, there was half a million dollars extra contributed to funding projects and offsetting staff costs.

Great South employs 40 staff and the funding was a significant investment by council.

While the funding costs keep creeping up, Great South did run a similar cost profile to council, Michael said.

Council agreed to the $1.94 million core funding and $920,000 for contract funding, but haven’t agreed to any additional funding until they receive more feedback from the Great South board – on how that money will be used.

“We as shareholders expect a no surprises approach,” Cr Lesley Soper said.