Transcript for:
Board Meeting and Tourism Sector Update

getting open welcome everybody so we'll start with the apologies and on guess we have hazel everyone else seems to be here I think so could I little mover please Andrew just just before you did just before you do and I had to leave the meeting at 1:30 to attend a future-proof meeting so sorry about that so my apologies from mean good as cold thanks Jim so we what shall we include that and though in the and and in the motion as well if someone would like to move please may be amazed might thanks Lou thanks Susan all in favor I like contrary no that's carried disclosure of members interests do we have any today no won't we've onto item for late items any late items no late items so confirmation of order of meeting no changes kin now I don't see any need for for change we do have a number of van geese to announce at the meeting today but they're well we're of the time so yes I'm hoping those of the earthly of the require time thanks crime a second thanks Susan I think what she is all in favor please say aye aye country no carried okay item 6 which is confirmation within minutes from 18 February if we all take those as being reared anything raised from those minutes in Graham speaking my diary's showing me that I was at their meeting but my name's not recorded it right özkan I was going to bring that up to so you think you some mistake thanks Bruce okay so I'm sure we can have that remedied Sam yes we'll make the changes thank you okay so that change could I have a mover for the minutes to be received as a trim quick Rico please thank you Marcus Sikandar I figured it thanks Bruce all in favor please say aye aye country no carried thank you item 7 Jason his Jason joined us he has preceded seemed nodding off hi Jason here you're doing good thank you great the floor is yours okay Sam I don't thing we hit as we hit a shoe they're trying to get the presentation is that right oh no it seemed a shearing brilliant perfect thanks Sam good morning or good afternoon sorry everyone thanks for allowing me time just to give you a quick update on where we are as a sector for tourism and particularly for wiper district so a report has obviously been provided to you and prepared which was our last six months performance at the end of 31st December 2019 as you would have seen Waipa District Council was going through a significant growth pretty one of the fastest growing regions for us with regards to tourism impact you were experiencing double-digit growth pretty much down through visitor expenditure and also commercial accommodation but we are here today to discuss this that obviously a bit of a change in the dynamic given Kover than the impact for tourism particular sector next slide theme perfect so just first a couple of slides obviously I'm just covering off some data we're now receiving international in national data on a weekly basis from the government and also from the airlines so of no surprise obviously since covert lockdown and international travel restrictions were put in place international visitor arrivals into New Zealand has been he'll be dropping it at a very sharp rate we still do have a line connectivity which I will go through because we are still maintaining what we call a baseline service for Connie across the world mainly for repatriation flights but also for cargo and service across the country as well mix slides mean things so weekly card transactions again no surprise obviously overall our visitor expenditure is down significantly but when you do look onto the left top five obviously food liquor and pharmacies we are still seeing some humor in some obviously weekly growth and expenditure a computer all our other because of the type of expenditure in transactions as well think seem so the impact for us is a sector again look I mean everything all of this has been reported but just to cover off in summary we were already impacted through the loss of China group travel we've started and the second to last week of January so with that all of our international facing products our hotels our motels our Airbnb a merely impacted by that because many are trying to group travel actually did stay on the Y cattle they were our fourth largest and station or visitor market behind Australia North America in UK Europe it did shut us down pretty much once international travel restrictions hit us and the visitor economy covers more than just the tourism operators again with mention accommodation it also impacts retail hospitality transport providers our operators of course but also event organizers in major venues and of course a mystery Creek of anti-drone in Lake hope it'll a key event platforms for wipeout district we have had significant job losses in business closures across tourism I have done underneath that last bullet points look the immediate business impact that we have been coaching our businesses through and helping them get through there's some have gone to what we call temporary or seasonal closure so again we have a lot of seasonality and tourism many who would closed for winter have closed but those that potentially have never closed before we've suggested they go into hibernation and so that's what we're calling temporary seasonal closures we've had a number of businesses you know Hobbiton was obviously one of the most public reported in the media but again all our motels hotels retail hospitality have pretty much reduced service and staff there's only essential services operating as we know but again with elude level 3 we do see some opening up potentially in the hospitality sector for white power anyway and then the last obviously implication for us as we have here a number of businesses who appearantly closing not only are these are lost definitely to the tourism industry to try and bring people back when we don't hit products but also particularly for those vulnerable communities with some of these operators have been going for many years things seem sure have you got examples of what businesses are struggling and like what who isn't closing by who is closing and how it is impacting her in the water yeah so for wipeouts it was mainly being your hospitality potentially some of your retail and also accommodation so we've had many nearly all of your accommodation has pretty much gone into hibernation or closure they're calling it temporary closure but the some have been able to access the wage subsidy which is great but again what we're going to see is the impacts are longer than the 12-week wage subsidy right now so it's post twelve weeks what we're quite concerned about we have been lobbying nationally the government and I think that's all sectors not just tourism around potentially extending the wage subsidy for twenty weeks because it will take a lot to restart the tourism sector again people's propensity to travel is quite low we will travel locally and potentially we will travel intra regionally so staying within the region but to try and stand up the domestic travel market is going to be a long haul they were looking in at six to twelve months recovery plan for their great so lastly look I mean and no surprise here this was just like we do for industries people know we we all fit so from the tourism perspective when we respond obviously we're providing the industry support right now at a national level regional level and also a local level but then we have to Walker at of Commerce helpers and associations and all local government have been great and actually supporting us with what we call the business and community support site for tourism businesses and then lastly we were obviously partnered with the civil defense network around providing welfare support not just for tourism operators again it's also been utilizing tourism operators many of our caterers have now been repurposed into providing food services pretty much or supporting the food banks and actually cooking meals we also have a number of our transport operators and tourism being run basically requisitioned now to provide transport options and actually getting people around such as essential workers in many of the staff potentially we've been redeploying and to sort of things need work through providing security and welfare and call center as well so not only are we also working with sort of fence were also putting stuff into beer as well even though we're obviously dealing with koba does it does for you to be aware there are obviously continuing issues that that were going on with some with coffered and with the tourism industry first up was domestic airline connectivity so lucky and New Zealand has been pretty open that they will not be restarting and solute level once we meet with them you don't weekly just to see how we will try and stay in the industry back up again they're going to focus very much what we call an incremental restart so it's doing a what's in briefs strategy across the country so potentially maybe only two or three flights into Hamilton good day but again is to try and give their reach across the whole network first before they can actually stand up and have a full schedule like we have seen how to Hamilton import particularly over the last three to four years airline connectivity internationally is still continuing so those are just some a summary of some of the ones that are still flying so again New Zealand are still connecting into North America and Hong Kong into Australia Fiji Airlines are still flying into Fiji on the daily service in Qatar has probably used the most to try and repatriate Northern Hemisphere travelers back to their homes through Qatar and then also Korean Airlines is still operating today service as well for future again a New Zealander saying they will be focusing very much on the domestic market first they will traditionally be a domestic airline for the first six to 12 months and domestic also includes Australia in the Pacific American Airlines so far been the only one would meet with who plane to return to New Zealand from October 2020 so they have put a stake in the ground to say when they will start flying into New Zealand again now the reason why I was raised international airline connectivity is because it will take this country at least two to five years before we ever go back to the type of connectivity with head as a country previously before lockdown so again it's going to be a very long burn for us as a country to regain the international visitor arrivals have seen in the past air traffic control services up for review the reason why I just put Bettany was just to let everyone know there was no y cottle reports or or ear fields but particularly hamilton e port isn't impacted but for us in the central North Island Rotorua is one that is going to be impacted around potentially the closure of air traffic control tower services there will mean potentially that we will be reading the domestic network through Toronto and Hamilton so unfortunately for all to do as last it could be our gain and then lastly we've still got the investigation underway around for cardi white island so the WorkSafe investigation should be coming to a close shortly there will be impacts on the tourism in suppliers around adventure tourism for this country and also we will be up waiting cual mark which is their accreditation program particularly around health and safety for the country soon this means that date size we are now filled days is going online so from the 30th of June for two weeks field days will be providing a virtual exhibition space there is similar to other international events to offer this type of experience again it is a trial but we do hope to bring field days back in 2021 obviously not only is the largest major event for y power but it's definitely forward or why cuddle with regards to eating on a compact we would do to host New Zealand tourism awards and November there has been postponed until niche we will receive the tape for that exploring trends these are what we call our two main international trade shows they've obviously been delayed trains 2021 which is the main time when we actually sell the work huddle to the world we will not be having until maybe June next year so is just awaiting on a date for that to major convention centers were due to open this year at T PI and Christchurch which potentially is the one there we'll be taking a lot of business away for our stroll for business events that has now been delayed for another year and of course there musial an International Convention Center we will not know the reopening date of there until they work through there are the final insurance claims so again by having these two convention centers not operating means they're places like cool ones in the mystery Creek Event Center are going to be filling the gap for national and international conferences for the short term which is actually a good opportunity for us again as a region postcode but we also do still have events plane so the major events obviously the National waka ama is at this stage still plan to take it a man to take take a take a feat and like cut up you know and we also have our first major event for the region the ICC woman's Cricket World Cup scheduled for the 8th of February again this one will particularly be decided by around October November whether we international travel restrictions have lifted to enable some of the players to come otherwise they will have to go into if it does continue into isolation until the Cricket World Cup can be held so what we have seen goods finically or other parts of the Tito is that events have been more postponed for why par and for the wider Waikato region rather than completely canceled and not returning so there is some positivity for us as we do see this as the lead sector turn to recovery economically and socially for the district it's sliding over spot we have a three tiered response plan obviously this is no stability everyone else right now we have a mitigate process with draconian now we didn't have a restart phase and then we have a reimagine phase so initially in the response phase no different to pronounce lots of briefings lots of support we obviously them face to face briefings across all the sector long before the shutdown and now we've moved to the virtual space so we're still doing ever can see at a national level to try and make sure you can exit small business support for the region some of the gap right now at a government support and out of the support that's what I can provide as it doesn't cover any employees for a hundred employees plus so that's quite there's quite the pointy end of town we call it for most of our region for our big employers again wage subsidy okay but on the outside of there there's actually no large industry supports we'll be pushing it through government let's try and unlock some of that if this lockdown continues we've been doing one on one operator chickens we have 240 listed operators with us and so again these are daily or to weekly chickens by all our teams to make sure you want to be able to access business advice in some of the wage support we've been doing webinars and we've now moved in the last two weeks into workforce redeployment so again we're being taking some organizations or employers that have maybe at least 5 to 10 staff members displaced through to Hobbiton who had one of the largest at around 270 and actually read deploying them and offering them redeployment options and to the kiwifruit industry we placed a hundred and ten staff and to kiwifruit with transport from hobbiton as well as the avocado industry which will be the next seasonal workforce will be will be standing up until the end of the year but put stuff into supermarkets sort of fence security and also they've been providing some services from home but again what we are going to see over the next two weeks and we're starting to measure there is the full-on peaks of people that we cannot read the point there potentially will be out of work so I think it's currently a survey underway and we'll be updating all councils in the government around the overall impact for tourism is why cuts all things in under the restart phase so again we want to congratulate local government because obviously I'm getting some of those shovel-ready projects through with the crown infrastructure partners for the consideration is a great win for the region but potentially for the sector and pretty much every district has put up around 1 to 2 tourism projects as part of shovel-ready so again we do need to focus on the future and how we will restart the region research we were already in market and about to finish up our domestic perceptions and major research this is now becoming quite timely for us and will help us and form around how we will try and bring back the domestic travelers into the region based on some of the research we've undertaken we're also working on a major in business events restart campaign so there planning's been underway for a couple of weeks so that when we're ready to go we can push go on there we do see events and business events and corporate travel as being the Kickstarter we need for economic and social recovery across the region new developments again you've all got new developments going on potentially in your regions Hidden Lake obviously one of your newest hotels in Cambridge and you opened on Christmas Eve so glean during the team we've been keeping in touch with quite a lot because they haven't been in operation very long the Olympics are quite severe so again making sure that we still have some future developments and then we'll continue across the region and to take us through the next stage data and insights I've touched on that now gone to weekly so again we're sharing that information in to Walker and now we've contributing to the Taraki can I make outlook as well which is great and then lastly the mighty local campaign was launched two weeks ago and it's definitely around the restart phase things seem so mighty local again was a partnership with ourselves to Walker all the chambers of commerce OTR mu-2 and obviously Cambridge chamber of commerce plus the way Qatar Chamber of Commerce all our councils the business associations it also exists in some communities and all our regional eyesight's we're in phase one so for the last two weeks we've been promoting businesses with contactless delivery promoting you know people that are still doing entertainment online or virtually from within why cuttle recently from our beloved shifts well-being and for and this week we launched business stories so again we're starting to use this platform to promote some of the businesses and how they're pivoting into obviously response or looking at different opportunities for their business so the idea is to try and give people hope during phase one during phase 2 which is obviously from a looot level 3 we will increase your takeaway and Ethan beam listings and also essential services are starting to grow as well and phase 2 we will move more to a local phase at the moment it's a regional platform but the idea is potentially people were able to group the types of information in services available at a local level and at district level as well and then phase 3 which has been hopefully all travel restrictions are lifted we will then activate the basically the the buy local eat local event local shop visit in explore within the region and obviously there's some partnership with many communities in business associations they'd already have local programs such as Cambridge with their totally locally Cambridge campaign so we're working with Kelly and the team around how we would try and push their program rather than this one once we get to phase 3 they seem and when it comes to how we will actually respond long term so at the moment we're in phase 1 so we're calling it the hyper local phase so 1 to 3 months we'll be pushing basically localism everything to do with obviously how you purchase and interact with your local community at phase 2 which then we'll move into a three to six month break it we're estimating we can then start to do ensure regional travel so we'll be targeting the drive market within the wirecutter region we hopefully starting to stand up community events again they can happen at a local level and regional business meetings might be able to begin again with social distancing it level 3 which is what we're planning our scenarios for 6 to 12 months we can then stand up the domestic market there is wind potentially we will mainly focus on Drive so if you've heard me say before 2.5 potentially 3 million people live within three hours radius of the Waikato region including the region itself so we'll definitely be focusing on the drive market national beans will be returning as well as national meetings and then eventually corporate travel which again business are quite a good lead for us with regards to the sector again and then lastly we're planning on one to two years before we actually start to see any sort of international impact again short-haul markets into Australia in the Pacific will open first and then we will eventually move back into major events international conferences and starting to bring me the corporate and leisure travel market into what cuttle so that's the timeframe we are currently doing our scenario thinning format is we all know it may change every week based on the other levels we have seen and then lastly reimagined so you would have seen that last week or actually two weeks ago as well the government announced that there was a call to reshape and reimagine the tourism industry so we have been pushing for the last two to three months with tourism New Zealand and the Minister for tourism around what we're calling a reimagining of tourism when we go there is our chance that this is more than a shock that's actually a bit of a circuit breaker for the sector and for all business sectors for us all to look and see how could we do our businesses differently we all knew that tourism was growing in quite an exponential rate and there were some areas that were really feeling the pressure such as Queenstown in Central Otago in Cathedral Cove some of our sites Mount amadito so for us now it's great to see the government are taking this seriously so we're now working with tourism New Zealand to lead a new plane domestically and internationally but also look at all these types of questions you know we're our previous visitor arrivals and spiritual growth right for the region what mall succeeds to look like for us for the future for a visitor market here we movie I'll stick to from boom and bust again no different to the food and fibre sector or any other business cycle and lastly how do we move to a more sustainable community lead tourism and for us and the way cuts are what we call creating need benefit rather than just benefiting those that potentially we're making money out of tourism we want to see communities thrive and then they have the decision around what sort of tourism they want so again we will be moving out sixteen tourism opportunities plane which many of you were involved in we will now be developing a destination management plan and it'll be happening nationally as well to try on what we call transform tourism for the Vita so we there is no such word as recovery now we will not be receiving the same sorts of level of tourism as we did previously but neither we might not have the same sort of services and opportunities available in tourism as well postcodes so again it is a good opportunity for us to look at transforming the sector look and lastly just obviously a cool I call it to all my local government partners I really appreciate everyone having to promote your race relief for missions and installment policies not just for the tourism sector but for all business it's great to see you all continue with your resource consumed crisis maybe in a more delayed way but again the liquor and food licensing is going to be more important for us particularly try and stand up after a looot level 3 we still have the regional major event strategy activation so again we are still awaiting some a decision from well energy trust about potentially having to establish a regional major event fund which will actually assist all the districts to be able to bid for major events again and also to attract and bid new major events into our shoulder season across the region and then lastly again just to thank you all for your continual funding to support the tourism industry and then it would obviously be more important through restart in the reimagine phase and again the point I made earlier we will not be recovering to pre covert levels for at least to five years as a sector and as a region there's a pretty much it from me I think so he'll be to take any questions thanks thanks Jason that's I got to say that's a fantastic response to what must have been a massive shock to the industry yeah and of course in white power and probably a lot of Waikato as well it domestic tourism sexually a lot bigger than international so we really want to see and as you have in your plan that being being worked on as soon as it's sooner that becomes a possibility but yeah does anyone have questions just put your hands up I can see you all clear okay um yes thanks a lot Jason and yeah fantastic if and I think been put in by all your team you know in this situation a couple of questions well the first one was that I noticed that in the regional major event strategy there's a new funding partner mentioned is that the well energy relationship or is it alright great useful as well energy yeah no that's great and the other thing is for your reimagining you know the future of tourism I'd saw that you had your stakeholders listed I didn't see the Department of Conservation being not that they are a tourism operator but most of them you know popular destinations you know I think a cathedral cove you know they're actually managed by the department and and I just want to be worthwhile trying to get them so around the table so that because I hear you know they worry about the pressure points that we were experiencing and that you know just having their input you know might be beneficial these they look absolutely so you're sorry about their clear the Department of Conservation are part of it so it's actually a joint tourism New Zealand in doc review of tourism and it's only because they they both actually contributed to the national tourism LTL or strategy so they are definitely part of it we don't obviously have a lot of any national parks but we do still have a lot of Crown Estate in some of the Crown Estate in our region or obviously so down our waterfalls and and lake areas so again in and on their rivers we just they will be engaging in that as well because we did it obviously have some opportunities with dock originally before covert so they're developing shore walls for the region and walks mentals so there's some projects that we now have brought forward again to say Campbell dock reconsider moving some of us so mister marking its unspent history in Wagga have any other questions this is just a huge thank you Jason to the support you have operators you know I have been I figured a little myself and that and the calls that I get from your Tina are very encouraging it's very suiting and just one of the things I just wanted to check in with you on I let some we do have a presentation a little bit later among the territory and I see you've also given them some support and that's really great who are reliant on a lot of the international visitors and I guess it's lucky for us in some ways that there's not that many white power operators at our light on internationals monetary is probably one of them perhaps our eyesight so to a certain degree in servicing international guests but do you think that there are any other aspects of white power that are going to be greatly affected with them to Nationals because it's really the biggest you know issues going to be it's mainly going to be the sports the sports coach so I think if we can try and get some of the international sporting events back up and running as soon as possible depending on travel restrictions they would be the main and paid for wiper but you are correct or pretty much most of our beans which are great you know operators pretty much talk to the domestic market and I still feel that again look at the Waikato expressway the other work they potentially has been put forward for shovel-ready even extremely nice way down to pier duty there it's just all going to help that ease of domestic travel and we definitely see the push from self-drive obviously the motor home in Caribbean Association there going to be another first leader and mover back into the region as well which is fantastic so working with them on a a traveler around trying to get more people back into why pass so I think again your geographic location your natural environment and also your have been platform so hold you in a stronger position around obviously recovering commute other parts of our region great okay thanks very much for that you've got you've done an awful lot of work and you've got a lot more in front of you I can see but that's great and if we've got no more queries or we have a recommendation do we ever move it please I think Marcus thinks clear all in favor please say aye aye contry no carried thanks very much Jason all the Beast things maybe I rely on you thank you in thanks saying good weird yes I see we have my sorry back Morgan what I see it and also Kelvin and Andrew I fear we'll get to you guys before long but mark from seee him with an airport yeah the flora look yours and no just like Jason I'm you've had a mess of change for your business so yeah it's he here you're going on they thanked Andrew and thanks for the opportunity welcome to all of the elected members hopefully we've got a presentation coming up and it should be before you now look today I've also got Scott Kindle my finance manager under one so Scott will deal with a cup of the finance slides and as most of what we have to talk to you about is and the realms of finance useful to heaven here preps not quite the presentation I had intended to present a month ago but as we know a lot has changed and a massive amount has changed for route and the in the last three or four weeks so the presentation is is primarily and if we can see I move to the next slide is primarily around the covert 19 response for rail but I thought and there's about eight or nine slides to the key slice to take you through and I think what you'll see is how we dealt with the crisis what the implications have been for the group now and for the next 15 months and in a summary that done shed some some positive light at the end of the tunnel thanks Sam if we move on so I guess the first point I think is useful to you've obviously received our six-month interim results some say you're only as good as your last results but sadly that's not the not quite the case today but look we were traveling extremely well very very good first six months and in fact on target for a record financial performance under any measure of hourly so I for this this financial year but of course the net led to our draft yes or why that you've also received and then of course is now pretty much irrelevant and I see that you ironically have an appendix letter to my chair barry harris about um about our why and as you can imagine we are working very quickly towards a revised is a wife for the next three years particularly the financials but also there'll be some narrative change and some priority changing as well we have ssa completed a very detailed fifteen month forecast through the 30 June next year that will form of course now part of the year one of the obvious oh I so look we have a we have a presentation the rail board and myself has a presentation to all shareholding councils in May and we by that stage will have finalized the new drafts so moving alright moving on to the next slide so I think now just looking at the the impact and look very difficult to well it's very easy to explain in simple terms it's had a massive impact on the business but if I divide it into these four areas that are before you of course the first result is the aeronautical business in New Zealand complete issue no suspension of flights so for us that was an immediate loss of income really from April but from the last week of March and along with our general aviation three Harris of flight school basically you know 97 98 percent lost of our aeronautical income overnight terminal plays and we really operating as an emergency medical service only at the airport had the same impact on our on our property but in fact our property is our lifeline that I will come to but again really overnight impact on our tendencies we're quite large landlord as you know and but to date and Scott will talk a wee bit about this but to date we've had good support from our tenants but we're early days as we know into the next sort of three to six months as businesses work through how they're going to operate and survive during this process we've obviously suspended the terminal upgrade work and I'll talk to that a bit further on which of course was a major piece of work approximately fifteen million dollars of of proposed work a hotel has been so if we can just go back to the previous slide Sam the hotel impacted significantly as well fortunately during April we have it was taken over by Ministry of Health as a isolation facility it wasn't required it was a backup to the Auckland hotels nonetheless we have received and we are receiving payment for the use of the hotel by the government but that ends really this week and from then on difficult times ahead and we'll talk about that and obviously our people and all my team are working remotely that's working very very well might sort of 11 or 12 on our immediate code that team responds but of course the cafe install staff are at home unable to work and part of the government subsidy a risk of fire team does remain on site at this point so that's really been the impact what have we really tried to do about it if we could move to the next slide [Music] first of all we we very quickly leading into probably two weeks before we move into level 2 and level 3 or before we even knew what that meant we had worked very closely with the board around a pandemic plan how we would operate the business and more importantly started to look at some scenario and modeling at that point that Jason would have mentioned earlier on as borders such as China were closing to terrorism we also saw the writing on the ward on the wall for our own business so that plan was developed and approved by the board before we even went into lockdown we've completed significant cost reductions and the business that's right across the business of it some major cost reductions in our expense lines reductions pretty much across our business in terms of payroll anything up to a 20% reduction and the board have also taken a reduction in their director fees we applied for and received the government wage subsidy across the group and with the hotel we worked through and are still working through with get Park but they've gone through a full restructuring exercise number of people have been made redundant and number have been retained under the government subsidy but we have a meeting later this week with chip park to look at stage 2 Airport association that we parlor was doing a major piece of work with central government to try and see what support of any there are for airport companies that have been significantly cut issue no we are we are long term infrastructure owners and to maintain the assets so there's a piece of work going on in that space we already covered the people we can move to the next slide the scenario modeling that I talked about there I think the point that I will that I'll make here and come back to at the end is that most airport companies particularly Regional Airport companies are significantly hurt and hit now we are fortunate that that we made the decision five or six years ago that the board then under under the leadership of John Spencer and then implemented by myself and my team we've we have as you know diversify the airport company and that is I guess bought us time so we have completed a very conservative model for argument's sake that assumes no in New Zealand activity of any of any meaningful sense before October this year no and then only a recovery of about 40 percent of passenger numbers through 2021 calendar year and well into 2022 before we have a positive EBIT da really so what is and we've also taken a very conservative view of leases of early season ability to pay us etc no activity out of the hotel really for the balance of this Condor year I so very very conservative but realistic modeling fortunately we have a major land sale that is unconditional and very extremely good family significant family multinational business that have agreed to further provide a letter of credit to the airport company which gives me confidence to to build the road so to speak so that delivers about two and a half million dollars of margin of free cash flow into the group early next year so the reality is that we can get through this year and through to June 21 almost a slightly positive cash position the balance sheets taking a bit of a her and Scott will take you through that but and also we have some work going on on Central Precinct and again we have the ability hopefully to settle some unconditional land sales with the same degree of confidence around fear the sureties which will also feed some additional cash into the group we've only utilized about 65% of our of our debt funding and in fact we have fear the facilities that we were intending to take anyway pre covert and we will still take which will take our funding up to about 30 million and then we will have only utilized not much more than 50% of that by June next year so most most of the cash burn is funded out of out of our overdraft during this period and then the land sales kept beckon and we're back and positive space being said very supportive and no no issues there around funding next slide please so we had joined with Hamilton City and and I had spoken to Gary diet and others around the obviously the crown infrastructure projects we have put forward to applications if you've had a chance to to review the submission she might would be aware there are 23 projects we have submitted for the terminal redevelopment and also for an amalgam of a number of projects around the airport that deal with roading lateral infrastructure our wastewater plant and various other s speak again is also worth about 11 million dollars so we have put person whether we're successful who knows but under the terminal redevelopment project we're ready to go tenders have been received and Emirate being evaluated the week of lockdown our consent is in with one with your council at the moment and that's well there was well underway so it is a shovel-ready project we could be out of the ground and doing a neighboring works within a month of a funding line the key for myself and the board will be what are the tags that the government apply if we are successful to the funding mechanism how much of it is the loan as a grant etc that's underway a next part of our recovery program so if we go to the next slide being important as we work through really the devastation of the past three or four weeks to make sure that we still keep our eye on the longer term for the group in our our focus over the next 12 months I once been any detailed time here other than to let you know that we have a clear set of clear business plan and a clear set of objectives for FY 21 most of those remain in place we are reviewing them currently as a management team but we are trying to make sure that we continue property as a major contributor even as you can see there potentially to shy of eight million dollars in land sales in this next 12-month period operations we continue to maintain the runway fortunately in our ten-year asset management plan we have a very quiet we just spent close to a million dollars finishing in March of this year on some apron works and some pumps some other bits and pieces but we have a very quiet couple expenditure for nautical over the next 12 to 18 months which couldn't have come at a better time but we maintain the assets and you need to know that we that we will when it comes to we'll be working very closely with the New Zealand to try and obviously kickstart services again and so our whole marketing and social media and common strategy will be around exactly that the hotel is a much more difficult beast as you would have gained from Jason's presentation but look we we are working now closely with jetpack to understand what a weather plane coming out the other side may look like fortunately it's a hotel that wasn't reliant on international tourism but it is relaxed on conferencing in particular and we get to understand the behavior of the business community as we go forward in this new world so we have just almost spending most of four million on the hotel just prior to lockdown so it is a it's a it's a property that we're going to have to maintain in the meantime in fund and our conservative modeling does does mean that the group can fund its interests in the hotel Sydney for the next 18 months with limited activity from it and if we move now into the next slide which is probably the financial certain couple of slides here on on sort of financials and and all its got leader now our overarching comment here would be you had a lot of detail in the six-month interim results so we decided there was no point in replicating information you will have read so Scott will summarize it here and more importantly take you out the other side of years Brad good afternoon everyone and thanks max introduction um yeah I won't dwell too much on the past because it's unfortunately you become largely irrelevant but I guess just some key takeaways to the slide and what you may have read already an interim report but really that momentum we built in the past couple of years around a sustainable so recurring revenue basis through passenger growth in the airport business I'm sure a property portfolio that it continued really well for the first half of the year and you know obviously without cover the ninth we expected to continue through the full year and beyond yeah it's just the points are properly obviously talking some big numbers really in sales I guess that they are laying cells that have been contemplated under a 10-year plan the lens doesn't quite line it's not something that we've done as a knee-jerk reaction all sort of a fire sale type arrangement just to get some cash next couple years these are on the land with selling as sort of surplus to your Oracle requirements affect much of it's actually physically separated from the airport through a gallery system so we're not compromising any core asset sort of future capability by selling this land very much as lender service the airport's that's why it's being sold off time it has been yes just with the hotel you see it as a new investment for us a new industry would be Siddhant really pleased with the early trading performance yeah and probably pleasing that we didn't other than the initial money to do the property app tenders and deferred maintenance and things it's actually traded catch so positive he has much been profitable with depreciation and things but really able to repay some debt and you know the early vital signs were an occupancy in rem rate have been have been certainly in line with expectation and again kind of right up until February March it was really just coming into its stride around the conference center and the food and beverage offerings so yeah I think you know it was you know was looking really positive and hopefully don't the other side that's the O momentum we can and we can leverage off again so probably look look to the future now just move to the next slide please yes I've given here just sort of an six-month increments the remainder of the financial year I'm also fighting sure that we're in and then the following three that are presented and the drafts then in a material received I think important to focus on a bit there because it's sort of a cash flow metric for us that includes then sales but it excludes of course costs like depreciation which because around three million dollars here for us which in the short term there's not necessarily linear worth they with the investment we make into assets so seeing I'll see seeing a reasonably significant decline in the next and this calendar year with across the business certainly gonna suffer omits as we see in that's sort of early six months between December twenty and Jo next year that's the effect of this largely and so I'm taking your feet I mean as the business kinda gets back on its feet you can see it's slowly back to cashflow positive so I guess you want to compare the read the read in the blue the blue bars and red line and the Green Line is subtly we think we can ahead now you can see you're definitely next to the fifteen to eighteen months it's gonna be a bit painful but after they're pretty much back on their feet they're not becoming heavily reliant on our land sales certainly a person takes 18 months so we've only seen what's already under contract and wants unconditional ctul and those numbers so I think that's the conservative but realist looking and conservative conservative on both fronts I'm sitting at it costs we're looking to Road out of the business on anything that's gonna compromise this long term we're not giving out capability but either we've built or with managed to hang on to for as long as we have but it's um yeah definitely conservative and look if things don't play out the way and we see them doing and certainly not as positive as they might do there's some opportunities if they're that but for now it's this sort of as realistic that we can preserve a current capability anyway yeah I guess just overlaid a neat profit slide yeah there's a lot more probably the deficits are bigger largely because of the effect of depreciation but ultimately following a really similar tree into the cash flow that layer in sales over the next 18 months will give us cash flow positive and we expect by the end of bustles to be largely cashflow positive from it's recurring trading to be sustainable and yeah that's probably I guess the main takeaway there and it's not really built into the slides but just as much on the balance sheet like we speak there will be some impacts to our balance sheet around property values and those sort of equity movements so as a shareholder that obviously will impact your accounts as well but I guess out of this as a shareholder and an on fire or sense out of all of us we're preserving our core capability and we're not compromising any of it in nautical capability I think yet in terms of what the service will keep delivering that shouldn't be compromised or at least our ability to do it that was really all I had just view the financials somewhat beep aspect to wrap up this is their last slide my apologies that's it we've taken a bit of your time but look I think the key themes here really are as I opened up we hit this situation in a very strong position and in a very strong balance sheet a record year the fourth side of the diversification through our ten-year group strategy has I think really bought this company time Pretz unlike some other regional airports that I think will need to go to their shareholders very quickly for additional funding or through their through their bank funding lines we don't need to that non revenue has been absolutely critical to - and in fact ironically we never predicted a covert 19 scenario but we did predict a loss of aeronautical income through cessation of services or reduce services so has been one on the same and look overall the recovery is Scott as mentioned will be modest but sustainable and as I want to keep restating we won't need to go to our core deep at this stage or funding lines to fund this we can fund it out of an effective working capital and most importantly I think for you as this year holders there is no requirement for the board to come to its shareholders for support and we don't see a scenario at all that that requires the shareholders to assist the your company in the foreseeable future so that's it from me sorry and drug apologize if we're over time but happy to take questions if you've got time yeah no thanks guys I think we were aware that a bit of extra time was going to be required for you guys with such a massive impact and I just got a quick question about the flight school and when would they not get back to level one or possibly could they operate and level two when in fact scoffs just hit some advice today it could well be that the pilots that are that are will through their qualification will be able to start flying under level three so as soon as next week we could see some flight activity but it will be to your point Andrew down at level one probably but there'll be the social distancing issues when you have an instructor and a trainee pilot on board so I think where we still are unclear and so are all three as to when that will be I think it's worth noting that we don't quite know where we're going to go with all three in the sense that they've got a hundred one hundred and eighty pilots currently at the airport and in Hamilton or out at the accommodation at the airport so I think we will fight there fine for the next few months the question is how whether they're going to beat the logistics of moving pilots across borders for training and actually pilots there is not a dearth of pilots in the global marketplace as a result of the catastrophe catastrophe for the airlines so I think those two would suggest to us that we've got difficult times ahead place the end of 2020 with l3 yeah that makes sense yeah I think it's as you've both noted the stage that you're at with your property development has been a very fortunate thing if this had occurred at the beginning of that it would have been far more um if I naturally just but does anyone else have any queries okay that not be in casework thank you very much a really comprehensive update and great to see you recovered from the shock and being really positive and constructive going forward so thanks very much to you both thank you ma'am yes and I see we have Melvin sorry what was that ah okay so we got Kelvin and also as Peter available yes I am oh great so thanks Kelvin and Peter um and we'll get on to the services thanks mr. chairman and thanks for the opportunity to speak with you this afternoon you've been provided with a copy of the company's statement of intent and half yearly report to 31 December 2019 and I I'm conscious of the fact this is the first opportunity I've had is the newish chair of the LES to talk to you so I wanted to start by just briefly introducing myself and then I wanted to talk a little bit about the company's transformation role how are we going to do things differently what it means for your counsel and then I want to conclude with some remarks about covert 19 but I guess the key point is that certainly from the board of lessers perspective the organization has never been more relevant than it will be in a post covert 19 recovery period so the first point I wanted to make is that my family has been heavily invested in the white cutoff for a very long time my mother's family came to this region in 1865 my father's family came to this region in 1880s and all my family live in the region my mum lives and kuroky district my sister lives and Tim's coromandel I have another system in Hamilton a brother and Waipa District and after 44 years and leaving Auckland next week and moving to Cambridge so we very much look forward to becoming our district council ratepayers from the 1st of May so as you can see my family's been heavily invested in the success of the region and it's one of the reasons I took the job but the other reason is the clarity of the opportunity and I've spent 21 years in local government governance across multiple CCOs and and clarity of role is actually quite unusual in this case that company's vision is to have Waikato Council's working together in the best way possible for the collective benefit of them and their communities which means less burden on ratepayers happier communities council staff and more effective councils so every as we've set out in our statement of intent the organization really exists to do three things first of all to create effectiveness and efficiency games for shareholders such as you secondly to help increase the influence of the region and thirdly to help shareholders provide a better customer experience what les does is provide an opportunity to think regionally without boundaries and to then help councils use that locally to improve the well-being of the community so thinking regionally means that rather than individual councils trying to solve their problems individually les can help them work them out with the costs of that spread while still allowing local choices to whether to implement solutions locally I think that if sphere to say my observation would be that over the years of its existence the organization has done a good job but I think one of the reasons that I've been hired is that there was an opportunity seen to be able to really grasp the company's potential so when I was high the board said that it wanted to undertake a number of transformative projects at Pace and for that reason we are going to end our driving the organisation harder and faster and earlier this year the board committed to do just that we are looking to be bolder more disruptive to enable you to help you transform how you and other work at all councils operate we also won't be afraid of failing and by that I mean recognizing that opportunity's worth pursuing as long as we do it fast coming from the private sector having spent 35 years in the private sector my observation would be that there's nothing wrong with failure so long as you fail fast and fail cheap so within that in mind and looking ahead over the next 18 months there are really three core elements to what we're doing there are some key strategic projects which will be looking to advance as fast as possible and you'll see those projects in the statement of intent there are some businesses usual projects and in addition I've asked for a reexamination of some of the work that we're doing to see whether we should stop doing it as you'll appreciate it it's really fundamental to perceptions of success of an organization that they seem to be making progress month by month so one of the things we've done is introduced a lot more careful tracking about what it is that we're doing and whether we're being successful and we're looking to improve the communications to key council staff as well I've said to my board colleagues and you'll be aware I'm sure that the that everyone that sits around the last board with the exception of me as a chief executive of one of them in the council's I've said to my board colleagues that they are really the difference between less succeeding and failing that and the reason for that is that they are the ones who will dictate the resourcing and prioritization and cooperation which is accorded to less projects and obey the point pretty clearly that without their total commitment the organization will fail but equally their success lesser success will be their success and vice versa so turning now to what it means for your council think three things first of all you should consider this organization is an extension of your vision of building the future together to promote the well-being of Wipeout it's people we've both got a role to play in providing solutions to the high-growth region of the Waikato we both recognize the need to do more with less to drive cost out of local councils we both want to ensure that nationally the Waikato region punches above its weight by showing that the region can provide them provide joined-up services across the region and we both want to improve the well-being of community indeed it's in your vision secondly as an organization as I've said before we're not limited by boundaries we're tasked with thinking regionally to enable you to act better locally and I think the opportunities to work with you and your companion councils to achieve your aspirations are boundless regardless and possibly even more but cause of covert 19 thirdly obviously by necessity we need resource to achieve our outcomes and you'll see that some of the initiatives that we've proposed in a statement of intent will require some upfront investment in order to achieve some mid to long-term savings now I said I would finish with a few words on coronavirus it won't surprise you to know that as a board we've discussed very early on whether we should make any substantive changes to our work programme to reflect what will be a new reality what we concluded indeed was that in fact we should keep doing what we're doing because it's going to be even more important moreover it's going to help rebuild the region and increase resilience our view is that in a postcode of 19 period during the recovery period they'll be need in the region for at least the following three things first security of Public Works to enable a private sector to plan long-range and I think importantly commit to training and for this staff to commit to stay in the region secondly a demonstration of restraint by public bodies on what might be perceived as non-essential spending in other words doing more with less and thirdly motivation and encouragement and development of current council staff now we're planning to deliver all of those already through our work program has set out and a statement of intent so thank you for the opportunity to talk to you I obviously wish that I could have spoken with you in person but no doubt that'll opportunity will arise sometimes shortly in the future Kelvin and I are more than happy to take any questions mr. chair but I wondered to Kelvin if there is any additional points that you want it to make I welcome and Peter thank you okay thanks very much for that yeah as you mentioned less has been active ania ania between here councils for a number of years now in being very successful particularly with rather the road in accord but what's happening now is an absolute steep change and I totally agree with what you said about it being more important post covert rather than lease so yeah I wish we were success of course nail questions I think clear yes yeah yes thanks Andrew and great to meet you you know and good to see you too Kelvin I'm I did seen through some questions but on to to ones that I just like to ask them this forum the first one is that you know you've made a strong case for continuing how you're going at the moment you know that all those things that you're focusing on will be more important than ever when we are dealing in the postcode era I guess um but a lot of the things that that are done rely on the I suppose the goodwill of councils and releasing resources for from their business to work on less stuff and I can foresee that councils are actually going to be pretty hard priests with their own own staffing resources dealing with you know extra things that have come out of the woodwork to do with covert 19 and so what assurance can you give us that that you won't sort of find yourself high and dry that you can't get that sort of resource that you do need you know from the individual councils that have normally been really supportive because the idea you started just completely committed you know to this other work okay well would you mind if I answer that question first and then job maybe there's a few additional points you want to make i think counselor thank you that's a that's a great question the good news is we had I'm happy to say thought of that as well and one of the earliest things that we did well before lockdown was when we could see this thing coming was to reach out to councils to ask them to think about whether in the context of any redeployment of assets and people that they were doing whether there were going to be some people that might affect be freed up to be able to work on some of our projects to make them go faster and I was pleasantly surprised particularly from some of the smaller councils to be honest about the positive response that we got in terms of offering up staff that's a first point the second point is that more specifically Calvin's been in touch with the chief executives of all of the councils I think as recently as yesterday Kelvin where we've set out some specific skill sets that we're looking for in order to be able to advance some of our strategic projects so as I say a great question surprisingly repository sponsz from that from the councils that we've reached out to but you're absolutely right then the resourcing issue may even flow over time and it's something we were acutely conscious of : did you have any point to it I look I I think that sort of covers it all off Peter to be honest well it's really encouraging actually excuse me could you get that clarification that's great the other question I had was about the energy and carbon management that's mentioned in the SOI yeah I wasn't sure whether there is the carbon order that our counselors sort of before the last election we that was one of the directions that we gave the staff that we wanted to get something organizing that which would help us I suppose formulate a plan you know for climate change net and is the energy management that's mentioned that most unfeeling into that audit or not so the short answer is councilor that no it's well it's certainly not the audit that you were referring to I don't see any particular reason why the people that we use see that we engage to provide that support to councils could not help with that order if there was something that that what our executive team we're interested in doing but I'm not actually privy to the particular the status of the particular piece of work that you're referring to I know that Martin lunch who's one of the guys tends to work with why Fire District Council has been doing some bespoke work in this area but I'm not sure whether it specifically relates to their report that you're referring to it okay oh thanks thanks for the clarification it's okay any more questions no okay well thank you very much for for their presentation and yeah particularly now in a period of significant change that's really you know great to see the positivity we have going forward even and but with a weird will we have around us at the moment so yeah thanks Peter Kelvin very much thank you very much mr. chair he knows yes and I see Andrew Michael is available and will talk to us about the LG FA thank you for the opportunity and I just maybe make a few brief comments and then touch on current environment and then leave some time for questions so LGF a started in 2012 it currently has 67 member councils were the number of others and the process of joining and the current environment has probably just you know even for the council's that don't have any did they realize that you know having access to finances important sort of probably speeding up you know be iraq their time table for joining an OT fa is based on similar models and the scandinavian countries the longest of those is endemic that's been going for 130 years now so what LG FA wants us to be a very long-term provider of financing to the local authority sector the objectives interests savings on councils did to provide a range of borrowing options so short to him in longer term financing and probably the most important one is access to deep markets and that's been the area that specs being the most challenging and over the past couple of months in terms of the financials the profit for the year to June 2020 which was forecast to be 10 million is on tricks or even ran the part numbers for for April yesterday and again them the monthly profit is on track a lot of the forecasting that's in the draft II so I is just out of date it suspense superseded by the events that we've seen the last few months but that said just remember that LG FA has ten billion dollars of lending to the sector's we borrowed from investors and on land and every time we do we take a small margin so the profit read on all that lending is locked and until those loans mature so even though there may well be some variability in profit a lot of others as lot turn that's it the profitability probably shouldn't be your your primary concern it as we're councils get the savings as the savings on the interest costs and certainty around accessing of Finance so that's probably the key thing the current environment interest rates low so maybe that's one little bit of good news for for councils so short-term interest rates counselors like yourself can borrow below one percent now longer-term we just completed a 1 billion dollar debt issue just over a week ago so we borrowed for six years and we borrowed up 1.4 6% for a billion dollars so we will add on 20 points to councils or 25 points to wipe our I think it is so you'll be accessing longer to money six year money around 1.7 percent just to give you some idea of a borrowing costs so that's you know one bit of good news probably two or three weeks ago we were receiving recall borrowing or quiz from councils there's a lot of councils knowing that maybe you know fee income is dropping and they needed to get more money into to cover that so we've never had a month we have had a higher amount of borrowing costs the OGF a was the first count of this non-government entity well entity other than the government to issue in New Zealand since the level four lockdown was imposed for a while and Bester's were very reluctant to invest it's just you know they're worried even if we buy we won't be able to sell things and it's just that whole risk aversion that we had two developments one was lgf a haber 1 billion dollar standby facility from the New Zealand government that expires next year but the minister finance provided Alisa to LGF a saying that the government would roll bed over the period of time so that support from the government was just a it's really symbolic to investors that there's going to be there ongoing support from the government for what LGF a the second thing that occurred as the Reserve Bank announced that they were going to buy back government bonds and subsequent to that they added lgf a to the list of securities that they are able to buy so they signaled that buy back up to three billion dollars of LGF a bonds from investors and it was that that really gave the confidence to investors that if we buy them there's actually going to be another huge buyer in the market for that so again you know the level of support that we're getting from the government has been extremely important there's going to be significant challenges for councils particularly in the 2021 sort of financial year part of the working group that dia are running looking at doing a lot of modeling on council financial performance this well for the remainder of this year and in next year our next feeding into a lot of the other government sort of work streams such as the recovery sort of a weak stream so there's some quite sobering reading coming out of it for wipeouts you're probably well positioned in terms of your deep levels not high relative to some of the other higher growth councils in New Zealand so yeah there are a lot of challenges and that's probably one of the challenges for us is that potentially we're going to get breaches of the financial covenants in the next financial year not not this financial year so today we've never had a breach of the any of the financial covenants but you know if revenue falls significantly for councils worth a large amount of debt to start then they could well break that neck-deep - to revenue covenant so that's something we'll have to deal with but for those growth councils you know one of the last tools they've really got is you know having to cut their capex and again next not particularly conducive to starting growth in the economy and is working against a little bit of what the government wants to achieve so I just like to you know we appreciate that there's no compulsion for councils to use LG FA you're still free to borrow from any other sources that you want so I just like to acknowledge that can and the steam because wiper was one of the early supporters of LG FA we very much value your support of us and you know the professional relationship that we have thanks Andrew I think yeah almost goes without saying but I'll say at anybody LG to your face but another great contributor to the local government seen generally and certainly well I guess why power hasn't used your services that greatly we certainly intend to in the future possibly even more with Kovac possibly not we don't know yet do we can yeah it's um that's true we we don't know but um yeah but you're very comforted by their time but at one point Steven position number three yeah there does and it was very well priced on borrowing ability I like the one that was below 1% even better but he sought to possibly isn't asked that much know where it takes Andrew and does anyone else have any questions Bruce and then clear you're still muted Bruce press the spacebar I don't need to keep creasing it mate okay I'll change machines one doesn't work so once in the Bernsen entry just down page 33 she Kavanagh - white has got 200 fares and she is at that point four percent just a simple one well we're district you've got SS but a nine point nine never foreseen did you explain that yes the shareholding is just something sort of historical so we know G FA was started at needed 25 million of equity so there was I think nine or ten councils that were the initial subscribers and then they won sold some of the issues to a second group of councils that came in these shareholders so LG FA pay a small dividend to councils on their share holding that as 2% over acosta funds but our cluster funds might only be like one and a half percent at the moment so on a hundred thousand dollars of shares you're only going to be getting right the three or four thousand dollar dividend so that is really not material so the level of equity you have is really not that important it is the savings that you get on your borrowing costs that are going to be the big you know drivers of why you know council should be means of members of LG obeyed so it really doesn't give you a lot of advantage about you know a council bit as a non shareholder because again the still getting the same borrowing benefits that you are it's just simply effect we needed some councils to put in some equity to get the thing off off the ground so again you know we're grateful for the council's that did that I think it interested of doubling a figure in banking and in ordinary terms of thinking well here the head you get today so no thank you I just I just whipped it out for you Bruce it's it's a rounding thing it's actually you got point four four four of a percent and when you double it you get point eight eight so it's just rounding up and down Thank You mr. Chu you're so knowledgeable all clear oh yeah thanks Lucretia my head is about LGA saying one of their principles is that they'll demonstrate social and environmental responsibility and one question that I've been asking and pastors will LGU they consider introducing something like green financing or environmental bonds you know like the Productivity Commission did report to a no emissions economy you know years ago they highlighted that actually there's a bit of a gap in New Zealand with this kind of financing where councils could borrow for a project that would be you know reducing emissions or for environmental outcomes and usually it's at a slight margin lease or something and just to say it's a good thing to be doing and we want to encourage councils and do you think LG if they would do that or are you talking to government about that I thank you for that question that is the whole environmental issues have been pushed a little bit to the back at the moment because that's going on but ODF a stone a significant amount of work on it and we are intending to offer green financing to councils so remembering that it's not LG FA that is doing things with the money we just saw and lending us resources we've actually got all the documents up and ready to go but the issue is we're going to need councils to identify green projects also there's three categories of this green social and sustainable so for example a lot of the water things actually come under sustainable so there's a whole industry around it and a revolt involves identifying things and also there's a certification process of Dom net so I could probably speak if a day on this topic because it as if you see the documents they you know it must be like a hundred pages long and we've got all that really to go so it is all happening but it will be it's not going to be compulsory it will be up to each council is to check how they use that but green and beasting is a big theme globally probably particularly in Europe probably least soem in the US but certainly it does give you better access to to deep markets if you can visit the green framework well I'm thrilled to hear that you're working on it I actually think you should report on it say that you're actually preparing or or you know working on a proposal because I think a lot of people would be looking for that and yeah disable congratulations are I think it's great that you made yes some I suppose so ground with progress and you look forward to seeing you I mean you can actually make an announcement yeah we don't flip we have a council day each year sort of in July and we did flag that it was something we intend to do so we would you know got the update again this year but it is something that's definitely happening and we're more than happy to come and speak to you if you wanna if you know more in-depth discussion about about their business any other questions for Andrew no okay that being the case thank you very much for zooming with us and yeah always good might see you and fleece one of these days yeah please okay thanks very much Cheers okay well thanks for that everybody we have a recommendation that runs from A to G I'm not even going to attempt to read them all out Kim yeah sorry entry probably the thing we just need to turn our engine to because because obviously a key part of that and there's series of recommendations as the three liters that are in them and the appendices of open deck some appendix four five and six so I do just wonder whether just before you and before you pop the recommendation we've read as just with I'm just seeking in iam any input into those and those three meters because obviously when we when we knew to do proper recommendation you you will be a century mocking in those weavers yeah stinks further keen you're very right I did think of it I read through them and I felt they've seemed pretty appropriate as they are because particularly with Oh custom wine being there particularly with the airport we acknowledged that there was going to be a major revision in theory so I and but yeah is there anyone does anyone have any thoughts on a no all good thanks for that came but I think we're all good so could I have a mover please thank you Bruce and a seconder thanks blue cheese all in favor aye country no that's carried okay moving on to item number nine and I see nod as their king did you want to introduce or no look I'm and I'm very happy to leave this sound to - nada to him to take us through them the financial report yeah I guess the only thing I'm of significance a name again there is a health warning they're a little bit like I'm like the for monthly report that you saw at the last council meeting and obviously anything an item and the forecast column as yeah obviously outdated by the covert events Sonya so I'm a huge effort who's gone and ride across some across council in the last and the last two or three weeks to around yet to reef or casting you should see the results of their pre forecasting you should have a obviously a quite a different forecasts column and the next I'm financial reporting yeah but they see them happy phone order to take us through the report thanks very much thanks Kim good afternoon everyone so though currently is standing at the end of March the total income is currently at 74% of the forecast and the operating expenditure as a 72 percent of the four-year forecast we have Vista assets of 11.8 million recognized to date and it's currently 94% of the forecasts discovered assets as 402,000 development and reserve contributions of 4.4 million have been received to date and subsidies and grants are at 47 percent of the forecast we have capital expenditure today of 70 1.3 million which is 51 percent of the forecast and there have been no major budget changes this month due to a forecasting happening now there was one arbitrage arrangement made on the 12th of March that utilized six million dollars taught to fix borrowings and it was on Mitch Toombs maturing and June and will yield approximately 13,000 of interest the rates we had the sixty-two point 1 million that's been set for the year prior year's outstanding Atlas the sixty-two thousand and we have currently four hundred and sixty four thousand outstanding year to date and then I'll take the rest of our report as being weird and if anyone's got any questions okay any questions not a big change really to the what we represented the council meeting so yeah thanks for that nada that's great and there being no questions I'll ask for a move for the recommendation Thank You Roger and a decision thanks clear thanks Kay I'll catch you next time Philip all in favor aye aye country no it's carried thank you very much and thanks nada and move on to item team health and safety team oh yeah look I think I'm a she is Steve yes the first only us around yeah that's the same suit new young Steve Sholes baby a and M and a fake Bevers Bevers well here has joined us so yeah we know - Steven beef great welcome Steven beef hi guys another good news story we need some of them Steve - want to start off oh yeah sure all yours or mine okay so am I take it that you guys have them have read the report and the attachments to this I do see that there are a couple of questions from clear but is there any anything else that you guys would like to ask before I get to those questions from clear looks like the floor is yours clear he had a couple of questions yeah well I mean the first one was that they were for the council entranceways whether the location of a number of excellence so if you looked into those e-tron's ways to see something to do with entranceways right yeah beer from you one two three do they give you what they were the tow trips and an entrance ways and we did get property to have a look and there wasn't anything of significance that we found 93 can you guys hear me now yeah yes I we didn't find anything of significance of why they tripped the only thing weak it was thought about the lip we the doors kind of closed it and this is it Cambridge so I did property did have a look at those but we couldn't find anything that would have caused those trips and we haven't had any reported since so it may have been just one of those things that we are continuing to monitor anyway yeah yeah I know that I mean just the our luck that you know our facilities are the causing causing a problem for people that are coming into this year yeah so I just thought be good to know a bit more about it yeah okay no can you hear me yes wonderful I'm so sorry I lost my voice beer for a minute so I clear I understood you had another question as well and that was regarding what ways we have to keep track of how how the safety resources and processes are being utilized yeah there's a really good question perhaps if I if you go to the the a3 or the big report on the page above the health and safety due diligence plan monitoring above that is the health and safety lead indicators now these lead indicators are basically the resources and the contractors that we use and so essentially what we pay for and that's how we monitor and provide to you the details and what we're spending our health and safety budget on we do have a very small health and safety budget obviously but what does health and safety lead indicators shows you is that we we pay an ongoing fee to the work head of Occupational Consultancy who deliver our health monitoring services we also provide money to the EAP service which is so provides I guess counseling services to all of our staff we also have training health and safety training so we have set aside twenty one thousand for health and safety training and an annual year and that's that obviously is first aid refreshers and our health and safety committee training as well as any investigation training which we are looking at at the moment and our regular conflict training which is obviously comes out of that budget as well and these are all reported through these reporting mechanisms to yourselves and also to be executive team so I guess that's one of our due diligence and how we show that we are utilizing external resources and finances appropriately I know that that's a great explanation and I can see how it all fits together I guess I was wondering about how you knew if just individual staff members were actually you know knowledgeable about health and safety practices or if they were studying new tasks or something that they did actually get the right briefing and stuff like they're like a confident that that kind of sort of more grassroots those processes are working well as well I think being feel free to jump in here but I'm actually very confident because we have some very good well-educated Health and Safety representatives now and I must say they are commits they attend the meetings they go back to their respective teams and they disseminate that information you know we're making sure that any training his doubts fear I've got bf and Terry now working with all staff and specially team leaders and supervisors about how to keep your staff safe today yes thank you can you hear me all right I can no doesn't seem to be coming through my headphones I think this is a great report but the question I have is is there any way that we can assess some of the external influences on our team's health and safety from Corbett 19 yes absolutely and again be feel free to jump in here this report only covers the period from November through February so critically it misses essentially misses all the covert 19 that will come in the next report but yes absolutely we are we have a staff monitor will start register which we monitor the health and well-being of all our staff any that have immuno compromised health issues we are aware of where our staff what they're doing and with our slightly moving to level three next week we've gone out to all managers to advise us of where exactly their staff are going to be working whether they will be continuing to work from home whether we will have some like our parks operators working back out in the community and from a health and safety perspective we are working up some really good protocols around how to keep them more safe so I hope hope that's answered your your question counselor Gordon yeah I was more wondering about whether any of the external influences over which we've got no control you know that they're actually finding in their own family circumstances on something like that that's actually affecting their their mental state which obviously is a health and safety issue I can come in here if you like Steve I'm from I've just coming out of a webinar with EMA and which one of New Zealand's leading people and health or safety Paul javi was part of so that she rolled out quite a few ways on how this can be managed and multiple levels and I know that our wiper team have been working along those same lines so you know this is all pretty new to everybody so we're still writing up those protocols and and hopefully getting everything in place prior to actually going out next week on level three oh good be great to see those Thanks great anybody else no I just like to say it's it's great to see your health and safety program maturing each age report that we get and I just want to say I think your your one-page Gary's health and safety commitment as a that's a really really good you know thing to put in place there's nothing like everybody in the organization seen that the Cee is committed to to the program so congratulations on there she is well done okay so I have a recommendation to accept to report to either Luther please thank you clear thank you Elwin all those in favor please say aye aye aye contry no that's carried thanks ladies says welcome Phil and we're just going to pass a person motion to move into public excluded and then go off live our thanks Roger in a seconder thanks Susan all in favor aye I can't we know it's carried so Sam will let you do your thing