Tensions within the association had come to a head recently following the decision to cancel this year's New Zealand Agricultural Show. (file image) Photo: 123rf
The Canterbury A&P Association's board is keeping mum after it emerged one of their own received tens of thousands of dollars to help secure a multimillion-dollar bailout deal with Christchurch City Council.
Earlier this week, the council revealed the details of the $5 million deal, which would see the association surrender its lease on some council land on Wigram Road and receive $4m in a protected investment fund.
The association took out a 100-year lease on the 5ha parcel of council land which formed part of the wider Agricultural Park in 2015, but it was now surplus to requirements.
The council also established a $1m loan to the association in 2021 after it had to cancel 2020's show due to the Covid-19 pandemic.
The 2021 New Zealand Agricultural Show was also cancelled and the full loan drawn down.
Under the deal, the association would surrender the remaining 91 years of its lease on the council land and receive $1m in compensation from the council as a result. That would then be used by the association to pay back the loan to the council.
For his work on the Wigram Road deal, board member and director of audit and risk Steve Barry received $75,000.
None of the board contacted by RNZ would comment on the payment and others did not respond.
When asked about the payment, Barry told RNZ: "I've got nothing to say. You have a good day".
A statement, issued on behalf of the board's chairperson, Stewart Mitchell, said Barry was contracted because he was "identified as someone having the skills required to conclude what was a complex transaction and has done so successfully".
"Steve Barry was first approached by the board to assist with the Wigram Road transaction as an independent contractor with significant commercial skills in that space," the statement said.
"A subsequent decision by the board to end the external event management company's contract resulted in the need for an interim general manager to be appointed to manage the business and assist with the recruitment of a new general manager. Steve was asked to fill that role short term and he agreed to do so. Tracy Ahern was subsequently appointed.
"Steve was paid for his contracted services last week along with all other overdue creditors.
"The contract was for a total sum of $75,000 payable for services rendered over the period of two and a half years. Payment was to be made when certain milestones were achieved with the Wigram Road Transaction. $15,000 was paid in October 2022. The balance of $60,000 was payable on successful conclusion of a transaction with the CCC.
"Steve was a contractor engaged by the board to deliver a specific outcome in the same manner as all other contractors and suppliers are engaged to deliver a particular product or service. This work was not done as a board member and was in addition to the significant hours worked by him in that role."
The board unanimously supported the appointment and the payment, Mitchell said.
The $75,000 cost was "regarded by the board as concessional in commercial terms relative to the work involved, the skills required and the outcome achieved", he said.
Tensions within the association had come to a head recently following the decision to cancel this year's New Zealand Agricultural Show.
RNZ understands the decision was not unanimously supported around the board.
Some of the association's general committee remained hopeful of salvaging this year's show, and there was a divide over whether the association could support and afford a professional board into the future.
A special general meeting had been called with the possibility of a vote of no confidence floated.
However, Mitchell said: "The meeting has not been called in a constitutionally correct manner and this will need to be addressed by the General Committee".
"It's been a tortuous path over the past few months, but the board is thrilled with the Wigram Rd deal recently confirmed by the city council which will underpin the association for years to come.
"The decision to postpone the 2024 show has been previously conveyed to members, and the board is confident once the reasons for the decision, and the risks with proceeding, are fully understood by the wider General Committee and membership that they will endorse that decision, as being clearly in the best interests of the association and its future."
There had been rumours of board members resigning at July's general meeting, and Christchurch city councillor Sam MacDonald openly floated the possibility of changes to the board while speaking to Morning Report earlier this week.