NEW ZEALAND GAZETTE

No. 71

Solicitors:
Morrison Morpeth.

Auditors:
Deloitte Touche Tohmatsu.

Executive:
Frances Russell, Administrator.

Address:
Level Nine, BDO House, 99–105 Customhouse Quay, P.O. Box 11-679, Wellington. Telephone: (04) 499 7966. Facsimile: (04) 499 5960.

Chairperson’s Report

This is the seventh annual report of the Trust Bank Wellington Community Trust.

Objective

The trust remains committed to providing support to cultural, charitable, philanthropic and recreational organisations and groups in the area served by Trust Bank Wellington.

Trustees

Right Hon. F. D. (Frank) O’Flynn retired in May. Being the inaugural chairperson of the trust he had seen the trust grow from a fledgling organisation through to the dynamic trust that it is today. His wisdom and expertise will be missed. Two new trustees were appointed this year—Mr Peter Richardson, a solicitor from Upper Hutt; and Mr Peter Willis, an accountant from Eastbourne. Mr G. Littlefair was not reappointed.

Administration

1994 saw the trust employ a salaried staff member for the first time. Frances Russell now has the responsibility of administering the trust. Office space is rented in BDO House on Customhouse Quay. This move coincided with the restructuring of Trust Bank New Zealand Limited.

Fund Manager

The cash asset of the trust increased significantly last year due to the sell down of shares when Trust Bank New Zealand listed on the New Zealand Stock Exchange. This sell down gave an $8 million cash asset to the trust. It was initially invested with Trust Bank Wellington.

The Investment Sub Committee consisting of Graeme Reeves, Debbie Chin and Malcolm Dunphy, selected a Fund Manager, Tower Corporation Holdings Limited, to manage both the cash asset, and the total share portfolio. This approach was seen as a prudent move by the trust to protect the investment as well as protect the trustees. Consequently our share portfolio with the bank and our cash asset are continually monitored by professionals who have the responsibility of minimising our risk, and maximising our investment so that the largest possible return is available for distribution.

Bank Liaison

During the year we have continued to have a professional and working relationship with Trust Bank Wellington. Once again local branch managers organised functions for the trust so that many of the successful groups were able to attend in person to collect their grants.

It is my intention to maintain a mutually beneficial relationship between the trust and the bank. To that end I pay tribute to the retiring General Manager, Reece Mead, for his energetic contribution, and also wish both him and Carol all the best for the future.

Grants

The trust operates under predetermined guidelines for the distribution of grants to community organisations and groups. This year applications were received seeking over $2.5 million. The amount sought by applicants varies considerably from year to year but has always been well beyond the trust’s resources on each occasion.

The gap between expectation and realisation may be narrowed this coming year because of the successful share float of TBNZ and our decision to sell down some of our holding. The ensuing year could see almost $1 million being available for distribution to groups within the Trust Bank Wellington area. The criteria for grants have basically remained the same over the years, however this year the application form and information brochure have been combined making completion easier for applicants, and at the same time allowing the procedure for a more stringent audit process to be put in place.

The Grants Sub Committee, consisting of David Gibbons, Peter Willis, Michael Jameson and myself evaluated the applications and recommended that $627,076 be distributed to 439 applicants. It is my intention to significantly reduce the workload of the sub committee in 1995 as our administrator, who fully participated in all aspects of the grants round last year, will be in a position to classify the applications.

For the first time it was agreed to make a substantial donation to one applicant. Wellington Girls College Foundation submitted an excellent application outlining a project to set up a language centre at the college. The trust viewed the application with great interest as the project was seen to be a visionary one, and the foundation had worked very hard to raise a large amount of money from other sources, needing the final donation to get the project started. The $25,000 donation in 1994, with the promise of another $25,000 in 1995, also secured naming rights to the building. This institution and the subsequent exposure has attracted much favourable comment for the bank and the trust.

It is always very difficult to give away money prudently, and this year was no exception. Each application is evaluated individually, some are declined because they fall outside the trust’s criteria, or because of commercial content, and others because of insufficient information. However, at the end of the process the trustees believe that all possible steps have been taken to be fair and equitable to all applicants.