A new Act passed by Parliament will ensure New Plymouth District’s $347 million Perpetual Investment Fund (PIF) continues to benefit both current and future generations of residents.

Parliament on Wednesday passed the legislation that ring-fences benefits from the PIF for people living within the current New Plymouth district boundary.

The bill will ensure existing New Plymouth households are protected from potential adverse impacts of future local government amalgamation or other potential reforms which might otherwise have seen PIF dividends used in areas outside New Plymouth district.

The New Plymouth District Council (Perpetual Investment Fund) Act also requires the PIF to be kept as perpetual, meaning it would have to be protected so it keeps paying out for residents.

“The PIF helps us invest in a Sustainable Lifestyle Capital for our kids and grandkids and it offsets rates, shaving more than $11m off the total rates bill in the last 12 months. This new Act adds an extra layer of protection and provides a nest egg for our grandchildren,” New Plymouth District Mayor Neil Holdom, who was at Parliament to witness the Act’s passing on 28 June.

He acknowledged New Plymouth MP Glen Bennett’s role for shepherding this legislation through Parliament, MPs from all sides for getting behind it and paid tribute to his team of Councillors as well.

The PIF came from the sale of our Powerco shares in 2004. Previous generations have worked hard to maintain its value and today it’s independently managed to ensure it continues as a legacy.

The fund has also helped NPDC keep its AA+ credit rating, one of the highest ratings among possible for local government in New Zealand from international ratings agency S&P Global Ratings, reflecting strong financial management and confidence in the future.

You can read about the Act here.

FAST FACTS

• The PIF has distributed approximately $250 million to NPDC since 2004, including $10.4 million in the 2021/22 financial year.
• NPDC established the PIF in 2004 with approximately $260 million from the sale of its shareholding in Powerco.
• The PIF was valued at $347 million on 31 May 2023.
• The New Plymouth PIF Guardians Limited was set up in 2017 and is a council-controlled organisation.
• Since 2017, the PIF has been managed at arm’s length by independent investment firm Mercer (mercerfinancialservices.co.nz)
• Release payments from PIF are used to offset rates.
• NPDC manages assets, including the PIF, worth $4 billion, runs 16 businesses and has an annual operating budget of about $200 million.

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