Great South shareholder angst spills into article comments section
“Surely if Councils are to continue to support Great South and I believe they should then they need to seriously consider electing a chair from our province rather than one who does not live here."
Great South shareholder differences have spilled into an article comments section with ILT president Paddy' O’Brien firing a written shot at Great South’s board and expressing disappointment in two mayors.
For 10 years Great South - Southland’s regional development agency - has been working on an oat milk project. It sparked a plan to build a plant-based milk factory at Makarewa with the capability of producing 80 million litres per year.
Great South’s Beyond 2025 Plan indicated it would create 100+ jobs through construction and 70 skilled jobs thereafter.
However, New Zealand Functional Foods has since revealed the factory will now be built elsewhere - most likely in Canterbury.
It has created some angst amongst some community leaders with ILT CEO Chris Ramsay saying it is “mind-blowing” that the decision had been “supported” by Great South.
Invercargill City Councillor Ian Pottinger has also requested a “please explain” from Great South in regard to the circumstances that led to the plant-based milk factory shift.
However, in that article, Great South did receive the backing of both Invercargill Mayor Nobby Clark and Southland District Mayor Rob Scott.
It prompted ILT president Paddy O’Brien to take aim, in the article comments section, at both the mayors, as well as Great South’s board chair Ian Collier.
O’Brien wrote: “I am extremely disappointed to read that two Mayors in our Province are ok with the fact that Canterbury rather than Southland is going to benefit from all the hard work of the Great South team in trying to secure up to 80 new jobs in the deep South.
“Nowhere has anyone criticised the Great South Board. However, what needs to be criticised is that the Great South Board Chairman is part of a 3 person NZFF board that made the decision to build in Canterbury rather than Makarewa and he voted in support.
“The reason he was on the NZFF Board in the first place was so he could represent Southland’s interests.
“Surely if Councils are to continue to support Great South and I for one believe they should then they need to seriously consider electing a chair from our province rather than one who does not live here.
“That way we can be assured that the first thing the chair will do is support the province which on this occasion has been sadly lacking.
“I applaud Councillor Pottinger and others for ensuring that a full inquiry be made into why this unfortunate outcome has been allowed to happen.”
Fellow ILT board member Sean Bellew also commented on the article: “What a load of….We’ve ended up with milk on our face!”
Great South declined the opportunity to respond to O’Brien’s comments.
Southland District Mayor Rob Scott did respond to O’Brien’s comment on the Tribune article.
Scott wrote: “Paddy, this is a commercial opportunity that is driven by the market and will only succeed with external investment. Without that investment, the project could carry on for another 10 years and not land anywhere.
“Yes it is disappointing that the factory is not in Southland, but we need to look at the bigger picture here. If ILT wants to secure it in Southland, you could stump up the capital required and buy the shares in NZFF.
“Again, yes it is disappointing the plant might be built out of our region, but we need to look at the fact that it is going ahead, and celebrate that.
“The shares that Great South own on our behalf have value. The board and the chair are still acting in Southland's interests, albeit with a different outcome that wasn't initially expected (Rob Scott - Mayor of Southland).”
That prompted another comment from O’Brien: “Rob you have missed my point. If what you say in your reply is correct then the people of Southland should have been told that not lead along the path of the prospect of 70-80 jobs being created.
“If the fact that the project will only succeed with external investment then that should have been communicated.
“The people of Southland have every right now to ask what other projects where job opportunities are being bandied around for the province are not going to come to fruition because they need external investment? All we ever ask is transparency, we do not like surprises.”
The ILT is a small shareholder in Great South. Both the Invercargill City Council and Southland District Council both have a 48% shareholding in Great South.
Great South set up New Zealand Functional Foods before Stephen Tindall’s investment company K1W1 joined as an investor. It now has a 51% shareholding in NZFF and Great South has 49%.
Other investors have also been sought through the capital raising phase and NZFF CEO Paul Harvey has indicated the project has the potential to be much bigger than initially expected.
NZFF indicated it was vital for its manufacturing base to be in a location that allowed easy connection and collaboration in the industry.
It’s understood Invercargill Mayor Nobby Clark has issued a warning to his council colleagues about commenting on the matter in the media given what is at stake commercially for NZFF and in turn Great South.
Obviously they have a reason for the shift to Canterbury I would like to know what that reason is ?
The need for external finance has stymied some of my dreams over the years.but then again I haven't spent thousands of dollars,or let someone e else escape with the rewards.this is not the southland way.