The city council gave Toyota a $391,000 grant in 2017, but is tight-lipped about the circumstances.

EDITORIAL: There's no dispute Palmerston North is lucky to have Toyota New Zealand's headquarters in the city.

Its presence is good for the economy and creates jobs, more so now the head office and distribution centre expansion is under way.

"The expansion demonstrates an ongoing commitment to Palmerston North, and provides further opportunities for locals," a Palmerston North City Council official told us this week.

"The council recognised this as an economic development opportunity and made a one-off grant."

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That grant was worth $391,000, from discretionary funds, and was made in 2017.

Yet, it only came to light this week thanks to an Official Information Act request from the NZ Taxpayers' Union.

This is clearly not acceptable.

Given the effusive praise of Toyota from the council official, and what they say is true, surely the council would want to shout from the rooftops about its contribution?

At the very least, details about the grant should have been made public at the time and, ideally, discussed in a public forum so ratepayers can form their own views on its merits.

Toyota didn't want to talk about the issue, referring us to the council for comment. As a private company, that's its right.

But the council is a public body and should be transparent in its dealings, especially when a significant amount of ratepayer money goes to a business that made a $21.9 million profit in the past financial year.

We need to know if Toyota asked for the money, what it was for specifically and who was involved in the decision-making.

We've asked the council this week why nothing was made public at the time – and by this we don't mean as some accounting footnote – and what information about the grant is in the public domain now.

Despite repeated attempts, the council hasn't told us.

At first, it didn't answer our question about where ratepayers can find out about the grant. It's also told us mayor Grant Smith is away this week so nobody can give an answer.

We look forward to hearing what Smith has to say, but the information vacuum suggests there is nothing easily accessible in any public document about the payment. And we were asking a simple question, not for comment.

It's tempting to conclude the council was happy with leaving the public in the dark.

Its spokesman praised Toyota's "ongoing commitment" to Palmerston North. We're sure the council is equally as committed to ratepayers, but it's a shame it neglected to be transparent.

Jimmy Ellingham is a Stuff news director in Manawatū.

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