19 SEPTEMBER NEW ZEALAND GAZETTE 3091

because Westpac wishes to continue to operate retail activities using the name and understandable wishes to retain the strong community focus that “trust bank” conveys.

To cut ownership ties with the bank was not a decision trustees took lightly. It was probably the most significant decision ever made since the trust was formed. In the end, the Westpac offer was simply too attractive to turn down. It has made a possible full diversification of the trust investment portfolio of nearly $150 million which for prudential reasons has been a long term investment objective for trustees. It also secures firmly the long term strategic position of trust bank as a mainstream bank. Its competitive position, access to technology and expertise as well as funding opportunities are all strongly enhanced as a result. Our trustees have no doubt that as a major shareholder of the bank the decision to sell will make for a much stronger bank.

Income from dividends during the year totalled $2.5 million.

Donations

As we mentioned last year our ability to donate as much as possible is linked to investment policy and investment performance. The very dramatic growth in donations has come about directly as a result of investment diversification. Selling shares in trust bank has unlocked the considerable wealth accumulated within the bank over several years, which can now be used to better assist today’s beneficiaries, not just tomorrow’s. The effect sees a significant shift in favour of income growth.

Trustees continue to be excited by the enormous beneficial impact the trust can have upon the community as a result of increased income. They note however the increasing requests for assistance from groups and sectors of the community whose traditional funding sources are in many cases diminishing. It is of very real concern to observe that many paid and voluntary hours of work by community organisations are spent fundraising leaving less time to deliver the service they exist to provide.

The trustees primary donation focus is twofold. Firstly, to continue to support community groups big or small who maintain their community activity or service. Secondly, to be able to make a difference to organisations who seek to complete major projects or programmes that have wide regional benefits.

Donations made during the year totalled $3.1 million to nearly 1000 community organisations, an increase of 16 percent over the previous year. Since the trust commenced donations in 1991 a total of $10 million has been given to community organisations.

Trustees

I wish to thank our trustees for their contribution to the success of the trust during the year. The weight of responsibility does become heavier as trustees come to terms with the fact that they manage $150 million of community assets. They meet more frequently than they used to; they travel more as well. Their commitment to the success of the trust is appreciated. I also wish to publicly acknowledge the work our staff do in meeting the needs of our clients and fulfilling their duties to the trustees in a very professional manner.

CAROL MELVILLE, Chairperson.

5 June 1996.

Consolidated Statement of Financial Performance for the Year Ended 31 March 1996

1 This has been allocated to: