The doctor is IN
After originally intending to tell only Council staff about their new CEO today, and then have the Chron tell the public (and conduct it's usual "piercing analysis") tomorrow, it seems the Diva has realised that even Guyton Street is not free of Laws Watchers and so made the announcement on his own and the Council's website.
The new CEO is, as astute commenters have already noted, Wanganui District Holdings board member David Warburton. "Dr Warburton moved to Wanganui from Auckland four years ago to jointly establish Landmeat New Zealand Ltd, a meat processing company. He has had senior management positions in a number of industries, including forestry, packaging, property development, meat processing and retail. Dr Warburton has several directorships and two chairmanships (besides Wanganui District Council Holdings Ltd)," the Diva's press release proudly relates.
Oddly, left off this list of achievements is the fact he was also a director of Fibrecraft Industries, placed in liquidation in Wanganui High Court on 2 June 2004 on petition of Nuplex Industries (pdf file).
News stories at the time revealed:Fibrecraft Industries Ltd (Brian Shaw, Bruce Nicholson & David Warburton) was wound up in the Wanganui High Court on 2 June. Brendon Gibson & Stephanie Jeffreys (Ferrier Hodgson & Co, Auckland) were appointed liquidators. Mr Shaw is also a director of Composite Coatings & Structures Ltd, Fibrecraft Marine Ltd and Fibrecraft Systems Ltd, and a former director of NZ Cycle Industries Ltd. Mr Nicholson & Mr Warburton are also directors of the other 3 companies and of NW Management Services Ltd, NW Investments Ltd and various other companies.
We'll be fascinated to see how the sons and daughters of toil over at the Chron respond to Mr Warburton, considering their union is the EPMU. Because it seems Mr Warburton is no friend of the union, having recently laid off about 60 workers at the Kaitaia Timber Company. While Warburton's company, Tanner Group Ltd (TGL) announced it was closing its three mills at Kaitaia, Kerepehi and Tairua because it couldn't make a profit, EPMU timber industry organiser Megan Jones said the workers believed they were capable of running the plant profitably and wanted the opportunity to do so.
According to MP Sue Bradford, TGL told workers on a Friday that they had until Monday to come up with a way to keep their plant open. "So over and above the simple fact of the closure, local people have every right to feel bitter towards the way the Tanner Group has gone about this... we have a company that has obviously kept its workers in the dark for some time and has then attempted to make itself look good by offering a fig leaf of consultation."
The Union has tangled with Tanner Group just last month, when the company lost an Employment Relations Act case in which it was alleged to have "threaten[ed the] applicant with disciplinary action over [a] term of employment that had not been directly and expressly negotiated and [the] contents of which remained uncertain between parties". So hopefully Council staff have dotted the i's and crossed the t's in their employment contracts.
Warburton has no local government experience. According to both Dotty and the Diva, "over fifty people applied for the top job including CEOs of three other councils and the heads of two government agencies".
At least he can't tell Council staff today that they'd better come up with a way to buy up Wanganui before Monday morning or he'll close the doors at Guyton St and sell the whole lot off to, say, Greymouth. Well, we assume he can't.
Meanwhile, LawsWatch can tell you the date of the by-election:
"As Cr Taylor's resignation will be received on 30 September 2005, an election cannot be held until after 10 February 2006. It has been suggested that an appropriate date would be Saturday 11 February 2006." At least that's the recommendation before Council. Now it's appeared here, the Diva will probably insist on a different day.
Conveniently for any Visionite standing, that date follows a full helping of bread and circuses: Jimmy Barnes on Boxing Day, the River Queen "Clayton's premiere" on 29 January and the Mayoral Mile on the proposed date of the poll. Lots of reflected glory basking to be done there.
Update (7.08pm): We're not sure who left the comment that alleged "So what if one business failed? Was any money lost or not paid? No. So what's the fuss?" or why they'd be less than truthful, but lest visitors are misled, we have obtained a copy of the Liquidator's First Report into Fibrecraft Industries Limited dated 9 July 2005. We can't provide a direct link, but a copy can be obtained by going here, choosing "Register Search", searching "Fibrecraft", clicking on the appropriate company, and then clicking on the first document on the list.
...the Company ceased to trade in late August, early September 2003. We have been advised that the assets were sold in December 2003 to Composite Coatings and Structures Limited (formerly Fibrecraft Contracting Limited) for $40,005. This purchase price was paid by way of an offset against amounts purportedly owed under a registered security interest (see section 4.2). This transaction will be reviewed by the Liquidators. We note that Composite Coatings and Structures Limited is a related company with Bruce Nicholson and David Warburton as directors, and NWIL as the sole shareholder.
The reference to the sale of assets to NWIL is expanded upon in section 4.2 of the report, which says:
NWIL was repaid part of its debt by way of offset of the purchase price of the Company assets by Composite Coatings and Structures Limited, a wholly owned subsidiary of NWIL. The above amount is the balance outstanding subsequent to that offset.
Both security documents will be reviewed to ensure they are valid.
Total assets are listed as being $730 in the bank. Secured creditors amount to $172,519, preferential creditors and court costs $60,719 and unsecured creditors are owed $140,394, for a grand total of $376,632. That's an estimated deficiency to creditors of $372,902.
It's too early to say just what creditors will receive officially (final report to creditors has been delivered to the Companies Office today and should be available for viewing on Monday) but the title of the document, given that it includes the words "less than 20c in the dollar" offer some clue.
So whoever it was who said "Was any money lost or not paid? No"... just where did you get your information? Or could it be that people come here to spin?
Comments on this post are now closed.
55 comments:
Hell's bells, LawsWatch. This is scary stuff.
I wonder how much of it was on the CV that that the councillors saw. I suppose Laws can always blame them when it all turns to custard.
With a record like this, it's no wonder he seems to be a cobber of Ron Janes. I see that while Warburton got a seat on Wgi Dirstrict Holdings, his partner at the meat company, Bruce Nicholson, joined the great and the good at Wanganui Inc.
I bet the liquidators were easier to deal with than Michael will be.
What nonsense! You people need to get into the real world where adverse economic situations (like plummeting log prices) have forced many businesses to be restructured, sold or even closed down.
What you HAVEN'T told people is that the new deputy CEO is the vastly experienced Kevin Ross and I'm pleased that Guyton Street now has private & public sector experience. No more Dave Fosters running amok without any councillor having a clue.
Good on you, LW. Put the boot in before the guy has even started. But wasn't it the full council that chose him - Vison and non-Vision???
LawsWatch displays a depressing misunderstanding of the private sector which isn't surprising given its socialist tendecies.
A director of a company is not the CEO.
So tell us, please Michael
Was this stuff put before the councillors who put their hands up for Warburton?
Predictably, LawsMob have already started ducking behind the old "the council did it".
Of course falling log prices aren't really the issue, however dear to the Diva's heart that particular single issue might be.
The stuff that LawsWatch is talking about here is HOW things were done.
And I don't think falling log prices would have much to do with the little oops on the boatbuilding front.
Why not ask a councillor, Carol?
Like Sue W??
Oh, so plummeting log prices were a fast one Chas pulled but now they're an excuse?
We won't go far wrong with Kevin, though, so that's ok.
Realistically, we probably couldn't afford what the best candidates were asking, and then of course you'd have to find someone who would put up with Michael.
...adverse economic situations (like plummeting log prices) have forced many businesses to be restructured, sold or even closed down...
Nowhere have we said TGL has made the wrong decision, or even that it was it's own fault that it had to close. That would require a detailed analysis of the logging industry, and the balance sheets of the company, which we're not set up to do.
What we have criticised is the way in which the company has gone about the closure, and in particular how it's treated it's staff.
A director of a company is not the CEO.
You're right. In terms of Fibrecraft, only an exceptionally bad CEO could get a company into a state where it had to be liquidated without the Directors knowing about it. Whereas the Directors set policy and make decisions which can, if they're wrong, easily bring about collapse.
And in terms of TGL, it's Dr Warburton who's quoted (links provided in the main post) explaining and defending the decision. Shutting down operations (and the way in which staff were treated prior and subsequently) are decisions which surely would have to have been made by the Directors, not the CEO.
From my reading of the press release, the guy has a good number of directorships. So what if one business failed? Was any money lost or not paid? No. So what's the fuss?
I know something of that liquidation and it was Warburton and crew who tried to help out the guy who originally owned the business. But he was in so far deep that they had no opton but to liquidate the business.
Ask around commercial circles, LawsWatch. Get the full picture. Stop letting your hatred of Laws malign other individuals.
So how come three other local body CEOs wanted the Wanganui job, plus two heads of govt agencies? I had a mate who would have been good for this job (I thought) but he pulled out because he said the competition was too high.
What you HAVEN'T told people is that the new deputy CEO is the vastly experienced Kevin Ross
Yes, you're right. Having completed research into Dr Warburton (which we suspect is more than most Councillors did independently of what spin they were given) we overlooked the appointment of Mr Ross.
And while we wouldn't go so far as a rousing "hurrah" at the appointment he has shown he's capable of proffering advice that the Diva doesn't necessarily want to hear, such as on the sale of endowment land.
So a cautious welcome from lawsWatch too.
No danger of the Chron news staff getting onto this one today. They've been out on strike again.
But at least it was a loverly day in Wangaa-Vague-as to sit in the sun with their placards.
Of course that still leaves Mas to step into the breach.
So what if one business failed? Was any money lost or not paid? ...Ask around commercial circles, LawsWatch.
We've asked the liquidators for a full report. If they oblige, we;ll post it here.
The worrying thing about this is that there's no one genuinely independent and with experience at other councils coming in. Kevin Ross might be able, but Wanganui needs someone with experience of how things are done elsewhere.
That's really been the problem with senior roles in the past there. Whitlock, Foster etc were just there too long and weren't exposed to different ways of operating a council.
Yes, but imagine someone coming in from outside who UNDERSTANDS the distinctions between governance and management in local government, and who KNOWS the mayor's place is on the other side of the door to mahogany row?
Now that would create some, shall we say, tension.
And what if the new person knew the LGA etc and actually believed in the value of LTCCPs etc (you know those things ML slags off and tries to bulldoze through)?
Oh no that wouldn't do at all, would it Michael?
anon 12:57 in the earlier thread asked me .....
>"Sorry Harold, but in what way do you think the arts 'moan',
I read CW's last letter in the Chronic...there's an example :)
>...as you go on to say the arts give tons of 'good' news stories to Wanganui ... for years in fact.
yes...I was making the point that the Chronicle was a good servant of local arts promotion...accept the lettters column perhaps ;)
>Some people just don't like the negative way the mayor has treated the gallery.
True... and adding to the problem dosn't help
> Hardly 'moaning' but voicing a different view point.
the point needs to be made skillfully though
>Oh, and there were no so- called 'art activists' until the mayor came to power, just positive members of this community."
I think the Whanganui Arts community is wonderful and part of the re enlivening of the place :)
No-one is perfect but your slagging off of Warburton does him a grave disservice, and LawsWatch problems with malice.
Ask around town about how Warburton et al came in to try & rescue a guy whose business skills did not match his shipbuilding talent. They tried to rescue him, failed, and now Carol is heaping shit on David Warburton.
You should ask around town - the Matt Doyles, Harvey Greens, Warren Ruscoes who do know.
Isn't your REAL problem that a council led by the mayor you detest, appointed him??
Other things to note about David Warburton's commercial history/involvement on the Companies Office website ...
1. He's a director of about dozen companies;
2. He's a shareholder (ie he has a direct financial interest) in only
4 or 5;
3. He was NOT a shareholder in the firm that went into liquidation, suggesting that the earlier statement about getting involved to save the shipbuilder, is probably true.
4. LawsWatch - you should have told us the WHOLE story, & not the bit that suited your prejudice.
Cheers.
you should have told us the WHOLE story, & not the bit that suited your prejudice.
We accept the entire history of the company isn't listed here. As we understand it from the liquidator's report, Dr Warburton was a shareholder in the the company which owned the company which was liquidated, as opposed to a direct shareholder.
If we posted every document (and there are many) filed with the Companies Office related to Fibrecraft you'd be here all night reading them. If you do want to spend all night reading them, we've provided a link and very clear instructions as to how to get the "full" story. We will also provide a link to, and excerpts from, the final report when it becomes available.
Compare it to what you get in the Chron tomorrow.
That's not the point. You didn't tell the whole story about Warburton's commercial history/pedigree. Just the bits that attempted to portray him in a negative light.
The difference between LawsWatch and Don Brash is what exactly? Same issue - telling a minute portion of the story is not the truth.
On Kevin Ross - there's nothing in his statements on endowment land that contradict Laws. You had me excited for a moment there!
An earlier thread talked about the mayor's injudicious comments about the New Orleans tragedy. I see that the entire Sunday Star Times column is posted on -
www.mayormichael.co.nz
You make up your own mind.
And who created that site? Not the council, surely.
On Kevin Ross - there's nothing in his statements on endowment land that contradict Laws.
Sorry if we gave that impression. That would be altogether too exciting for Wanganui. But he did talk of Council coming under "pressure to sell", rather bravely, we thought, when the source of the pressure was at the head of the table.
That's not my reading of that remark, sorry. It seems they're under pressure to sell from those on leasehold land who want the freehold title. Very common these days.
...telling a minute portion of the story is not the truth.
Telling a portion of the truth as opposed to, say, coming here and claiming "no money was lost" when there's a shortfall for creditors of $372,902?
Like any medium, we make editorial decisions and describing the "Russian dolls" approach taken by Dr Warburton to ownership of Fibrecraft, owning companies which owned that company, would bore most people to tears.
Again, we provided references to the Companies Office where the entire history can be read at leisure. We've attempted to hide nothing, and given people the pointers to information they need to make up their own minds.
If only Council would do the same.
It seems they're under pressure to sell from those on leasehold land who want the freehold title.
You could well be right... there's no way of knowing for certain from the text of his remarks. He said "some sites have a river view and council may be put under pressure to sell".
The reference to "river views" seems to us to indicate an interest from persons not presently resident there, but we accept that's only one interpretation.
"If only Council would do the same."
If only the Chron. would do the same. It seems we have two "good news" papers.
I'm not necessarily alarmed by Dr. Warburton's company history, but some analysis from the Chron. would have been nice.
I guess we have to wait 'til after the strike
Of course you could always argue that a somewhat colourful business record needn't be an impediment. And that Wgi should giv him another chance, like the voters did with M Laws.
After all, if we hadn't been prepared to forgive and forget the fact that he'd disgraced himself in an earlier local government/parliamentary career this city would have denied itself the services of the greatest mayor it's ever likely to have.
YEAH RIGHT!
"I guess we have to wait 'til after the strike"
Um, don't hold your breath. Michael has probably already conveyed to Mas (via the Spin Fairy) perhaps that any such investigative journalism has no place in the Laws Empire.
All these entries confirm is that LawsWatch and its low wage contributors have no idea about commerce. Not every business venture succeeds and Warburton appears to the director and/or shareholder of a significant number of successful businesses. More important the CIRCUMSTANCES of Fibercraft's failure cannot be ascribed to the good doctor. He attempted to help out a boatbuilder, the guy was already in too deep, and the business was wound out. The interesting thing is that a good number of people know this in the Wanganui commercial community but L/Watch doesn't. Are you really based here??
HOW IS THE BY-ELECTION POLL GOING???
"TGL director David Warburton rejected Ms Bradford’s criticism as totally without foundation, however. Staff and their union had in fact been informed of the situation that was developing in March last year, and again in October. At that time the union was offered the opportunity to examine the books so it could form its own views of the problems facing the company.
Staff had been aware of the fact that the company closed its head office and merged those functions with the plants last year, and were aware that subsidiaries and assets had been sold to raise the capital that had been needed to keep the plants operating.
“The staff and the union have been kept very well informed of the pressure this company has been under, and the steps that have been taken in an effort to alleviate those pressures,” Mr Warburton said."
Don't you think you should have provided the FULL story relating to Bradford's claims, LawsWatch???
The above from the Northland Age.
You biassed prick.
Very interesting that the mayor has managed to get himself the prime advertising possie with RCP. The front page, right corner solus. My contacts tell me he has it for the next 3 years. But they reject our adverts.
When I read "Sue Bradford" I thought "hmm, better take this with a pinch of salt." Watchers, you should know better.
On the other hand, anyone genuinely successful in business doesn't need this job.
What matters most is how he behaves as CEO. He was elected by secret ballot, so we'll never know whether he was Michael's favourite. Given the pro-Wanganui faction within Vision, and the independents, I would have thought we'd get the best person for the job.
Time will tell. We should at least be grateful that someone is going to try and work with Laws.
What a ponce - three local authority CEOs and two govt agency heads wanted to work with this mayor. I'd say they were queueing up because being CEO of the Wanganui District Council is no prize.
Sorry anon ponce, dont follow the logic...
People are queing up to apply because they DONT want to work here??????
I think they had so many high caliblre applicatns because people realise that Wanganui has a great lifestyle and want to live a more relaxed pace of life, in spite of pricks like this blog who wont even give a guy a fair break before he has even started.
From the outside perspective you are just so negative, but you dont see it and you dont see the harm you do to Wanganui!
"Very interesting that the mayor has managed to get himself the prime advertising possie with RCP. My contacts tell me he has it for the next 3 years."
That's nice. He can use it to advertise for a job when the voters give him the shove.
"... you dont see the harm you do to Wanganui!"
Just how much good would you your hero does to Wanganui with his vile rants in the national media?
Does anyone know if Kevin Ross applied for the CEO job - and if so, whether he made the final three?
Yes, and yes.
Thanks - I gather it was a very tight vote between the top two. And presumably the infamous secret caucus meeting would have left the Vision councillors in no doubt how they were expected to vote.
Don't you think you should have provided the FULL story relating to Bradford's claims, LawsWatch???
The above from the Northland Age.
You biassed prick.
Thank you for your thoughtful contribution. As we have pointed out repeatedly those bits of text in bold pink are links. Click on them and you can read the full liquidator's report, or all the Age stories (including the one you've cut-and-pasted from) relating to Dr Warburton's company.
Yes, we left off his rebuttal to Sue Bradford (who may be a well-known bolshevik but also happens to be a resident of the affected area). We also left off the comments of the townsfolk who have been devastated by TGL's action and have had protest marches etc.
If we published every word of every referenced document, posts would be ridiculously long. That's why you can click the links and read to your heart's content. We could just quote without linking, but we always try to link to online sources.
Bias: if you want to see it as such, fine. Withholding information: not guilty.
biased: yes
withholding information: not guilty
make up facts to suit ourselves: hell yes
criticise without reason: absolutely
be postive: NEVER!!!!
What bullshit - Kevin Ross didn't even apply for the CEO. Everyone (& I mean everyone) around council knows that. Check your sources, LawsWatch. There are over 200 council employees - you mean you get scuttlebutt from none of them?? Sheesh.
The fact that our new CEO has upset the communist Green MP Sue Bradford is very good news. That's exactly the kind of person we need at Wanganui's helm - someone prepared to take the tough decisions and tell the whingers to piss off.
make up facts to suit ourselves: hell yes
Such as? And we're not talking speculation as to the meaning of facts here. We present facts (Council reports, newspaper stories, official sources) and then we give an opinion as to what they mean. Lots of people disagree with our conclusions. But you're saying material presented as fact, not opinion has been fabricated. Examples please, with references to the "correct" facts since we reference all material presented as such.
criticise without reason: absolutely
We think the reason is obvious - the way this city is being run. But then if you like the way it's being run, as you have every right to, you'd think there was no reason. So an entirely subjective judgement.
be postive: NEVER!!!!
Wanganui already has a quisling "good news" paper, and a "pet story / sudoko / other stuff when we're not on strike, maybe" paper, so that niche was kinda crowded.
We're here to expose what your hero is up to. When he gets it right (e.g. the port) we say so.
If you don't like the negativity, tell Mickey to rein the the vitriol and explain honestly and without spin what's going on. If any of the questions raised here are answered by official sources we publish the response in full.
I'm sure our new CEO will know the nightmare has really begun when he realises the "calibre" of the new-found LawsMob fan club that comes as part of the Diva's package-deal.
My heart goes out to him.
Kevin Ross didn't even apply for the CEO... Check your sources, LawsWatch. There are over 200 council employees - you mean you get scuttlebutt from none of them??
Which could be why we never mentioned any such thing. It was a commenter, answering another commenter. Please attribute blame correctly. Comments are a vital part of LawsWatch, but they are not made by LawsWatch unless signed as such. Just like this one.
Come to think of it, perhaps that's what the other critic means by "making up facts". The facts we stand behind are in the main postings not stuff made in comments by anonymous people. We thought that should be obvious.
This thread started with LawsWatch assassinating the character of new CEO David Warburton. To Carol, Matt etc - you lost. Lost the last election, lost the Sarjeant scrap, lost your Code complaints, lost the referendum and have lost your chance ever to influence those who are doing their best for Wanganui.
lost your chance ever to influence those who are doing their best for Wanganui
There are many thousands of people doing their best for Wanganui every day - workers, retired folk, business people, volunteers, and yes, artists amongst them. They in turn influence what happens in the city.
Many come here, read what's written on both sides of the debate, and make up their own minds.
Confusing power with influence is a fundamental Laws mistake. You can win power with a few months of concerted spin, but you can influence only if you convince people of your good intent and the rightness of your argument. For the majority of people, spin won't cut it, yet that's all they're given.
Yes he has the power, but the influence is fast on the wane.
And for the record, we did not set out to assassinate Dr Warburton's character. Our initial reference to Fibrecraft was intended to highlight that, once again, a press release from the Mayor listed only part of the facts (the very sin of which we were later accused). The greater detail was posted only to refute an outright lie in comments that "no money was lost".
On reflection, perhaps we fell into a cunningly laid trap designed to deflect attention from Mickey's spin onto the (only peripherally relevant) history of a defunct company.
We'll await the final liquidators' report before drawing any conclusions about his actions in relation to Fibrecraft. We do, however, have reservations as to his handling of the closure of TGL's plants.
Bullshit! You slagged him off for no better reason than he was chosen by the mayor & his council.
Don Brash Mark II.
And what was Laws meant to in announcing the appointment, you twit! Say that he'd been involved in one failed company and here are ALL the details. But to provide balance he would have had to provide details of all the successful companies he's been or is involved in.
This was no trap, LawsWatch. You created your own shit.
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