Farry’s CST overspends budget by 46%

They spent $5.4 million on their own activities, as opposed to a budget of $3.7 million.

Comment received from Rob Hamlin
Submitted on 2012/05/12 at 3:47 pm

The critical part of the PWC report is given below. A deeply buried nugget on page 28 (of 43). As PWC note, the overruns excluding interest amounted to 206.4 – 198 = 8.4 million dollars – an overrun of around 4%. Which as PWC point out, is not that bad by the standards of such things.

However, 20% of this total is accounted for by budget overspend related to the Carisbrook Stadium Trust’s own internal activities. They spent $5.4 million on their own activities, as opposed to a budget of $3.7 million, an overspend of 46% of budget – as opposed to the rest of the project, which overspent by 3% once the CST’s contribution to the overall overspend is removed.

In addition, the reasons for the overspend in the other areas is covered in some detail in the other sections of the report and are fairly easy to understand (if not necessarily to agree with). The CST’s blowout contribution is different, with no real reason for this overspend appearing in the passage below. They were given a budget – they blew it – Why? PWC is silent – read on…

Posted by Elizabeth Kerr

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3 Comments

Filed under Business, Construction, CST, DCC, DVML, Economics, ORC, People, Politics, Project management, Property, Site, Sport, Stadiums, STS

3 responses to “Farry’s CST overspends budget by 46%

  1. Elizabeth

    ### ODT Online Mon, 27 Aug 2012
    Chancellor to head bank
    University of Otago chancellor John Ward has been appointed chairman of SBS Bank. Mr Ward, who has been deputy chairman for the past four years and replaces recently retired Acton Smith, was looking forward to the challenge.
    Read more

    Also Trustee, Carisbrook Stadium Charitable Trust (CST). Last observed consoling a tired and upset Malcolm Farry on stadium matters, one evening at Nova cafe…

    JOHN WARD
    Chairman of H&J Smith Holdings Limited and AJ Hackett Bungy Group
    Pro-Chancellor of University of Otago
    Directorships: Southland Building Society (SBS), Amtex Corporation Ltd and Simner Investments Ltd
    Chartered Accountant
    Lives in Invercargill
    http://www.carisbrook.org.nz/index.cfm?objectid=CD25B070-1451-11DF-950A000C297EF2DE

  2. amanda

    Will the media hold genius ‘businessmen’ and incompetent local politicans to account for negligent business plans leading to Dunedin’s massive unsustainable debt? Or will the local media continue to blame easy targets like DCC employees? Dear Media? We are watching with great interest!

  3. amanda

    Crs Hudson, Noone, Brown, Collins, Weatherall, Bezett and Acklin? I am looking at you.

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