Last week saw a lot of news relating the the council here in Queenstown. Allegations flew over two past press releases issued by CEO Duncan Field that singled out an individual and a local group. Will we see legal action and perhaps a defamation case in the near future? The council even had the time to comment on the uncertainty surrounding the 5-mile development, after dismissing a call from the community to purchase the land. And on that note, the liquidation proceedings against Dave Henderson's companies have been adjourned for three weeks, despite the fact that their major creditor Hanover Finance is now on its last legs.
Within the space of half a day, three comments were placed on this press release, all in favour of 'regular complainant', Wanaka's Andre Prassinos. The other matter of contention was Mr Field's previous soapbox performance where he labeled the Wakatipu Environmental Society's most recent campaign as 'self-serving', after it withdrew an appeal in the Environmental Court taken against minor changes to consent to redevelop the building known as The Emporium in Arrowtown. Amid claims of legal action, Queenstown Mayor Clive Geddes squashed discussion of the subject during the council's last meeting, as it now is in the arena of council's solicitors.
The Queenstown Lakes District Council have expressed faith in their planning process, and have used that reasoning to express no interest in purchasing the 5-mile site. This information was contained in this press release where Duncan Field expressed his uncertainty surrounding the liquidation proceedings, as well as the council's intention not to buy. One can only wonder as to the future of the development, and this view is only heightened by last week's headlines concerning the turmoil surrounding Hanover Finance, despite the fact that they'd already shelled out $15 million for their private property development company Axis Property Group to purchase around 300 properties in Jack's Point.
The news for Dave Henderson just continues to get worse. Today in the High Court, the liquidation proceedings against his property companies have been adjourned for three weeks and will now be heard on the 18th of August. The above link goes on to list the other companies who have joined the club regarding 5-miles liquidation, those being: engineering and surveying firm Gullwing, architects Warren and Mahoney, IRD, Specialist Trade Services and Roy Cromie. Adding to the whole ordeal was last week's news that two of Henderson's accommodation businesses are now being placed into receivership, those being the Living Space hotels in both Dunedin and Invercargill. But there seems to be some good news, with the withdrawal of action against Henderson's home, Gibbston Downs Wines.
Ripples are also being seen in the building industry with building consents down on last year, and a noticeable drop in the amount spent on construction, amounting to $43 million. This has forced a few unnamed building companies to start laying off contract staff, opting to have builders on their own books, rather than paying the higher rates seen when hiring through job agencies. This is further evidence of belt-tightening in the area.
It now seems obvious that the region is heading down an uncertain path, and one can only imagine to what the outcomes will be when the dust settles. In saying that, it's not all bad news, as in the year ending March 2008, visitor spending was up 2.7 percent to just over $6 billion, the highest level recorded. I expect to see a further targeting of domestic visitors to Queenstown, as well as the Australian and Chinese markets. But if the rot that is currently contained within the finance industry were to spread to banks, ANZ for example, the outlook could become a lot more bleak in the near future. According to Prince Charles, there has never been a better time to start to learn how to grow your own vegetables.
Nathan - Queenstown.com Editor.
