The directors of Target Pest, Environment Canterbury and the liquidator have settled, bringing to a close claims surrounding the pest destruction company which was established by Environment Canterbury in 1999. The action by the liquidator was against the directors of Target Pest with the allegation that Environment Canterbury was a “deemed director”.
Environment Canterbury’s chief executive Bryan Jenkins says during the negotiations the best interests of ratepayers was of utmost consideration.
The decision to settle was made because it was the right thing to do when considering the alternative, which involved potentially lengthy and expensive court action. It should not be interpreted as acceptance of liability.
Environment Canterbury’s contribution of the $700,000 settlement with liquidators is $325,000, half of which ($162,500) will be met by its insurers. Two creditors will receive an additional $200,000, of which Environment Canterbury’s contribution is $75,000, bringing Environment Canterbury’s total contribution to the settlement to $237,500.
“Environment Canterbury has always denied the allegations made against it by the liquidators, but in the interests of ratepayers has chosen to agree to the settlement rather than pursue the matter through the courts. Contesting this would have cost Environment Canterbury considerably more.”
Target Pest was established in 1999 as a Council Controlled Trading Organisation with a separate and professional board of directors, as required under the Companies Act. Environment Canterbury was the shareholder, but it was the Board’s role to oversee management and to govern.
Environment Canterbury established Target Pest because of a move in the sector towards a more commercial model for pest management and for it to no longer be the direct responsibility of regional councils. Its establishment also ensured retention of staff pest control skills and expertise in the region.
“We are pleased the parties have reached agreement and we can now move forward,” Dr Jenkins says.
For further information contact: Dr Bryan Jenkins, chief executive, Environment Canterbury, phone 364 9822, Mobile 027 4974973.