Around 60 people attended the meeting held in Connolly Hall to hear Trust Chairman, Brother Pat Lynch, Mr Michael Burrows, an independent lawyer from Burrows and Associates, and the Trust's appointed administrator, Mr Mike Curtis of Curtis-McLean, speak about the various options the trustees faced.

In outlining five options to members, Burrows told the meeting that a GST error amounting to $602,222 meant the trust was insolvent and that technically the Trustees were liable for this.

Acknowledging the trust's financial situation, Br Lynch told the meeting of his reluctance to become involved but did so only to transition the organisation into a properly functioning charitable company.

Lynch told the meeting it was only in preparing to form the company that the real seriousness of the situation became more clearly apparent.

Lynch said the trustees hoped to get a clear picture sooner, but were unable to, however, what was clear was membership was falling and the day-to-day administration of the trust was not robust.

Mr Curtis presented members with the financial statements for the year ended 31 March 2012.

In presenting three possible financial scenarios to members, Curtis said the Trustees had received four valuations for the vehicles, ranging from $4.5m - $5.5m.

In his presentation, Curtis informed members their loans are unsecured. He proposed that members contribute to the Diocesan Car Fund Trust's shortfall in proportion to their loans. He told the meeting that once the value of each vehicle is established, members can expect the administrator to contact them to negotiate a settlement.

Currently four vehicles remain unpaid for and members are asked to continue to pay their monthly levies.

Curtis handed the members a fifteen point document outlining a range of issues including the windup process, member entitlements and an answer to what will happen to the cars members are driving.

The meeting also agreed that a 'committee of inspection' be formed to assist the administrator in the liquidation.

As well as individual Wellington Diocesan clergy, representatives from the Anglican Diocese of Wellington, The Anglican Diocese of Taranaki, other Catholic dioceses and diocesan organisation, and religious orders from throughout New Zealand are looking to lose considerable sums.

Mr Dave Mullin representing the Archdiocese of Wellington wanted reassurance from the trustees that the Archdiocese's good name would not be tarnished by the liquidation and bad name of the Diocesan Car Fund. "They were often seen as the same thing," he told the meeting.

Speaking from the floor, towards the end of the meeting, Monsignor John Carde thanked all those who were involved in the running of the Diocesan Car Fund Trust, saying that it had been a wonderful service to the Church for many years, and had been a loyal sponsor of many Church organisations and events.

Mr Ray Lindsay, General Manager of the Diocesan Car Fund Trust was also at the meeting. During afternoon tea he invited some members to use his services in a new venture, the Inter-Faith Fleet Management Company which he is looking to establish.

In a letter to members of the trust, the Diocesan Car Fund Chairman, Br Pat Lynch, told its members that the Trust is no longer a going concern, and it does not have sufficient value with its cars to meet full repayment of the loans members have in the Trust.

Br Lynch said the shortfall is approximately $625,000 and the managed informal wind up is effective from 24 July.

Michael Curtis of Curtis McLean has been appointed administrator, and a contracted administrator is now managing the day to day work.

Acknowledging the Trust has suffered from a number of long term internal structural problems and that it may be in breach of some requirements of the Securities and the Reserve Bank Acts, the Trustees unanimously supported the option of the managed wind up.

The Trustees are working to put an equitable solution in place enabling ownership of the vehicles to be transferred to the Trusts' members, if they so wish.

In a statement to CathNews, Br Lynch said he is keen to avoid a "fire sale" of cars which he says could depress the vehicles' saleable value and which would be to the detriment of everyone. He said the Trust sought legal advice which recommended that a voluntary informal wind up is the best way forward.

Successive returns submitted to the Charities Commission record annual losses of $177,930 in 2010 and $76,364 in 2011 prompting auditors WHK to sound a warning to the Trustees.

In 2011 WHK also said they could not determine whether the Trust would be able to continue as a going concern and pay all its liabilities. WHK said they could not find sufficient appropriate independent evidence to support the $5.4m carrying value of the Trust's fleet when compared to the Trust's 31 March 2011 $51,060 net asset net value.

Br Lynch said it is sad to see it end.

"The Diocesan Car Fund has served its Members including clergy, religious and Church staff for many years, however the changes to the pieces of legislation that govern it and falling members have meant that it has outlived its purpose in its current structure."

"The Church will of course continue on and arrangements are likely to be put in place to ensure clergy, religious and staff have their transport needs met in order to continue in their various roles serving the community," said Br Lynch.

There are currently 260 members in the Diocesan Car Fund, compared to its peak, when General Manager Ray Lindsay said the Car Fund had 500 members.

Sources

• Charities Register
• Image: Facebook