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 bit tired, because it means we have to work more than we really want to. The bank would tell us where to go. Which is what the council is doing too, as it should,
