West Coast council rescues controversial stake in 1080 Canterbury pellet mill

By Lois Williams, Local Democracy Reporter

The West Coast Regional Council has cut its losses and sold its stake in a Canterbury-based pesticide factory.

While it renounces its controversial stake in Pest Control Research (PCR) Ltd, it retains ownership of the land and the PCR-leased factory in Rolleston, near Christchurch.

PCR manufactures a variety of pesticidal baits, including pellets containing 1080.

The council invested $ 1.9 million in the company in 2013, paying $ 1.3 million for the property and building, and $ 490,000 for a 49 percent stake in the business.

The council kept the investment quiet for about a year, and when it was discovered by the Greymouth Star, it sparked a petition and angry protests from anti-1080 protesters.

In announcing the sale today, Board Chairman Alan Birchfield said the board was selling primarily because the investment had not generated the expected earnings.

“We were not getting a decent return, but also the company was being prosecuted for a security incident and although it did not happen in our [Rolleston] site, there is some risk of liability, so we are withdrawing. “

WorkSafe NZ filed charges against PCR after a worker was poisoned by an anonymous chemical at its Bromley warehouse and hospitalized for two weeks. He later made a full recovery and the case has yet to go to court.

Birchfield said the board had sold its stake for a dollar to majority shareholder Matthew O’Brien, but that about $ 390,000 would be paid to the board from the joint venture’s checking account.

“The council has not made the profit it expected from the joint venture, but it hasn’t cost taxpayers a penny overall,” Birchfield said.

The council would retain ownership of the property in the Rolleston Izone industrial park, and PCR would remain as a tenant, paying the council $ 96,000 a year in rent, with a rent review due in January.

“That is a solid investment. We have spent quite a bit on the building, but the properties there are in high demand and will continue to increase in value; ours has earned around $ 400,000 in CV, which is much more than what we spent on the improvements. “

With the departure of the PCR board, CEO and majority shareholder Matthew O’Brien becomes the sole owner of the company.

So far he has declined to comment on the deal.