Tauranga City Councillor Larry Baldock is refuting claims a decision to give $120,000 of ratepayer money to the National Jazz Festival is against council policy.

On July 5, the council's events support and community investment subcommittee approved a $30,000 grant, plus a $90,000 loan for the 2012 festival.

Councillors Larry Baldock and Murray Guy have differing views about the legitimacy of a subcommittee's decision to provide $120,000 in funding to the jazz festival.

The subcommittee's chairman, Larry Baldock, says the loan would be repayable to council from the event's profits.

'Sometimes we give money as a guarantee against loss, but they needed the money up front, the cash flow needs to be there,” says Larry.

'We agreed it would be a loan, but it's not payable if they make nothing, if they do we get the money back.”

The jazz festival's about $100,000 losses from this year were covered by the Jazz Festival Society's reserves, says Larry.

'We are not bailing them out by this at all – one of the reasons we are doing this loan is we are hoping they will make profits next year from the big event, the 50^th anniversary.

'They should be able to get themselves back in profit, build up the reserves again, repay the loan and then also have profits to carry forward.

'The event they are looking at organising has the potential if it goes well to bring in a bit of money for them.”

Councillor Murray Guy says the decision granting money to the jazz festival is against council policy.

The policy in question is that after six years of funding, no further grants are to be made to any one organisation.

'The policy is unambiguous,” says Murray.

'At the conclusion of six years, no further grants are allowed to be made. End of story. It's on the Tauranga City Council website, under our policy.

'It's not uncommon for grants to be provided, support to be given where there might be an ‘i' to dot or ‘t' to cross in some minor area, but this particular grant is significantly outside a very clear policy.”

The subcommittee agenda clarified the policy, says Murray, and included funding amounts received by various groups going back to 2004.

The full council can make rules outside its policy, but it is bound to point out the reasons, says Murray.

Not only was it a deliberate breach of policy, Murray says it went to a 4-all vote with chairperson Larry Baldock using his casting vote.

'For the first time in my memory this particular (subcommittee) meeting is the first meeting the mayor has chosen to attend from beginning to end, and participate in,” says Murray.

'It was the mayor with 25 years experience who moved this resolution. It was supported by Bill Faulkner, the ratepayer's friend, again with similar numbers of years of experience.

'We can't say these people weren't aware of the policy and its application and how critical the integrity of adhering to policy is.

'The chairperson, former MP Larry Baldock, is also very experienced.

'Also in attendance at the meeting was Councillor Terry Molloy, who spoke very strongly in support of this allocation being made, even though he is not a member.

'He did not vote because he's not a member, but he's there to speak in support of it.”

A division was called, and those who voted for it noted in the minutes.

Larry says the decision is not against council policy.

'That's mischief making by one councillor in whose opinion it is against policy,” says Larry.

'No-one else had that opinion and it was discussed at the meeting and it has subsequently been reviewed, and so that's just his opinion. It isn't in my opinion.

'There is a report in terms of Murray's complaint about the policy violation.

'There is a report coming back to the next council meeting in August, which looks at whether the policy was adhered to or not.

'It's a matter of opinion by different councillors as to the way you interpret it.

'We are doing a policy review this year of this whole thing because it is a bit of a mess and we have got to tidy it up.”