Cats —or, Infrastructure spending, Council debt, and Disenfranchisement of Ratepayers

Council cat squad checking rego fees [supplied]

After the great floods, the common affliction amongst leaders, “water on the brain”.

█ The ‘thinking’ – DCC cat control remit for LGNZ AGM

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At Twitter:

Warming: The "cat rangers" are coming – if Local Govt NZ President & Dunedin Mayor Dave Cull has his way (Video) https://t.co/VHyv1Ns2sy

— Dave Goosselink (@davedunedin) July 26, 2017

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“There may be issues with cats but they also serve a useful purpose in controlling pests. The cat population doubled to two at my place last year, and we have more tui and bellbirds around than ever, as well as visits by kereru and eastern rosellas and fantails and waxeyes. The cats occasionally catch a bird but most often it is a sparrow or a thrush. But it looks like the Dunedin council and some others are keen on requiring the herding of cats. They kept as quiet as they could on cats during the local body elections, and now mid term they try to foist it on the public. Devious.” –Pete George at YourNZ

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Councils will now lobby the government to finish its National Cat Management strategy.

### radionz.co.nz 6:05 pm on 25 July 2017
RNZ News
Councils seek greater powers to control cats
By Michael Cropp – Wellington Local Government Reporter
The country’s councils are calling on the government to give them extra powers to protect wildlife from cats including microchipping, de-sexing and registration. Local bodies have the power to control dogs and their behaviour, but they only have jurisdiction over cats when they become a health risk. While the remit presented by Dunedin City Council at the meeting acknowledged the companion role of animals, it noted cats are a danger to wildlife. […] The controversial remit scraped through with just 51 percent of the vote at the Local Government New Zealand annual general meeting.
….Auckland mayor Phil Goff said his council abstained from the vote because it was not sure what it would mean for the 500,000 cats in the country’s largest city. “We are in favour of practical measures to protect native birdlife …. We’re not in favour of bureaucratic measures that might involve millions of dollars of council time and energy but doesn’t achieve the objectives that we set out to achieve,” Mr Goff said.
Read more

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More about ‘LGNZ The Blight’:

Local Government New Zealand – Media Release
Local government to debate four remits and elect new President at AGM
News type: National news | Published: 21 July 2017
The local government sector will voted on four issues when it gathers for its annual AGM in Auckland on Tuesday 25 July. There is a focus on litter legislation, local government funding, cat management and health in this year’s remits. The AGM follows this year’s LGNZ Conference, when over 600 delegates from local government and its stakeholders, industry and community will gather in Auckland for the two day event [23-25 July]. The theme of this year’s conference is Creating pathways to 2050: Liveable spaces and loveable places. Remits are voted on in a secret ballot and if passed will become official policy and be actioned by Local Government New Zealand. Local government will also be voting for a new LGNZ President to replace Lawrence Yule, who steps down after nine years in the role.
….National legislation to manage cats
The third remit was proposed by Dunedin City Council and asks that LGNZ lobby the Government to take legislative action as a matter of urgency to develop national legislation includes provision for cost recovery for cat management.
Throughout New Zealand councils are tasked with trying to promote responsible cat ownership and reduce their environmental impact on wildlife, including native birds and geckos.  Yet, territorial authority’s powers for cats are for minimising the impact on people’s health and wellbeing, and regional councils’ powers are restricted to destruction of feral cats as pests.  The remit seeks the protection of our wildlife and native species by seeking regulatory powers for cat control, including cat identification, cat de-sexing and responsible cat ownership.
….The LGNZ AGM is open to members only. Following the meeting, LGNZ will advise of the outcomes of all votes.
Read more

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Cat rangers and collars with bells on are some of the ideas Dunedin City Council wants to lobby Government for.

### Stuff.co.nz Last updated at 14:28, July 10 2017
Cat control: many Kiwi councils ready to lobby for national rules
By Libby Wilson
Councils around the country are looking to band together to rein in roaming moggies. Dunedin City Council has suggested its colleagues help it push the Government for national rules that could include cat rangers and shutting cats in overnight. Seven other councils around the country have given the idea, and its environmental focus, their backing ahead of a July vote at the Local Government New Zealand annual meeting.
Read more

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‘Vacuum of cat management policy and services in Dunedin’, local submission says.

### nzherald.co.nz 29 Jun, 2017 7:02am
Dunedin council proposes registration of cats in New Zealand
A Dunedin proposal that could result in the registration of cats in New Zealand will be discussed nationally. The proposal from the Dunedin City Council, in consultation with seven other councils, will next month go to a Local Government New Zealand (LGNZ) vote. If it is successful, LGNZ would make it a policy, and begin lobbying the Government to have it made law. The proposal could see the Government called upon to develop legislation for cats similar to the Dog Control Act. It already has the support of the Otago Regional Council, one of 78 councils which will vote on the idea.
Read more

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### ODT Online Wed, 17 May 2017
DCC seeks support for cat control
The Dunedin City Council will seek support from other New Zealand councils to gain greater control of cat management. If additional support from councils was gained, a remit would ask Local Government New Zealand to call upon the Government to give councils statutory power to control cats. The DCC was researching a Wellington City Council bylaw on microchipping cats. However, the current bylaw could not be enforced by non-compliance fees. Cat management would focus on the control of wild cats.
Link

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S T O P ● P R E S S

At Facebook:

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Related Posts and Comments:
26.7.17 RNZ Morning Report : Guyon Espiner sticks claws in Cat Cull & Curfews
25.7.17 To borrow from Stevie Smith : ‘the truth is I think he was already stuck’
22.7.17 Regional state of emergency lifted in Otago (incl Dunedin & Waitaki)
21.7.17 Rainy Day reading —The Spinoff : Ministry of Transport fraud case
21.7.17 DCC ORC : Heavy rain warnings preparations #PublicNotice
1.7.17 LGNZ, don’t wish ‘his lordship’ on New Zealand #VoteRachelReese
3.6.17 ODT updates mayoral vehicle serious injury crash information
24.4.17 LGOIMA vehicle (DCC) : Hyundai Santa Fe (2016) written off Jan 2017
10.12.16 Oh christ ! [LGNZ bureaucratic dopefest]
21.7.15 Dunedin to host LGNZ 2016 conference —FFS TIME TO TAKE IT OUT
21.5.15 DCC and LGNZ, total losers
2.2.15 LGNZ run by Mad Rooster Yule, end of story
10.10.14 Cull consorts with losers at LGNZ
26.6.14 LGNZ #blaggardliars

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Posted by Elizabeth Kerr

This post is offered in the public interest.

thoughts and faces #loosematerial

My father [never a follower of the FedUp Farmers, as he deemed them; always the campaigner for removal of farm subsidies, to enhance production and market competition] had ‘stock’ phrases with which to judge the faces of female adversaries, those with little brain or spine in politics, pretenders. One adept phrase that sticks in my mind is “like a horse eating thistles” —so I look on the following with my tinted lens, and laugh, rurally (ruefully). No one target.

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On 19 May @StuFleming tweeted: “Spend $200k, revenue projections of $2.4M to others, 10% margin yields say $240k net”
[minus ODT news photo of face]

As ratepayer not involved in tourism or hospo, I’m wondering what to spend my windfall from Trenz on. Travel? Balclutha or Hampden? https://t.co/kau4b3aDSB

— T. Optional (@TomBoyOptional) May 20, 2017

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Rather bleak. pic.twitter.com/dI41cnqk0u

— Chris (@opetheater) May 20, 2017

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[DUD ‘money hype’ typically depends on false multipliers, anechoic silences, and arrogant self-belief —this (yes) bleak statement applies across a broad range of proposed deals and associated marketing detritus in the city, especially to events, conferences, sport, hospitality and accommodation, and even the re-use (Not conservation) of truly rare and precious instances of historic heritage] Here’s to all the fricking horses out there, including hypocritical colleagues and friends with blinkers like demo balls prepared to squeeze the last dollar and pass us to Hell. Anyway, back to “the business”…. cargo cult tourism. The wider effects of tourism are like those of dairying. Too many eggs in one basket and everybody (I mean, everybody) ends up doing it badly —killing Our Place for generations. Greed, like endorphins, like a running addiction, binds them up. They think they’re bright, they think they’re enablers (read risk takers/investors centred on their own gains only), they think they’re entrepreneurs, better than others (but because I for one will tell you things you don’t want to hear, you’ll say “I’ll ring you tomorrow”, that silence again) but they’re just funneled, tunneled sheepybaas – doing it wrong. Like cows, deer, Chinese gooseberries (Kiwifruit!), wines, stadiums….. or ‘getting a room’ behind the poorly remembered, heavily made-up, Disney’d facade of our city and nationhood. The worst kind didn’t, or didn’t bother to, ‘grow up’ here. They get desperate, create mess, import other yes men. Ring you like nothing happened, their exploits —not to ask deeply madly who and how you really are.

### ODT Online Sat, 20 May 2017
Trenz prompts high aspirations
By David Loughrey
Next year’s Trenz conference in Dunedin is set to cost ratepayers $200,000, but the long-term pay-off should run well into the millions.
The Dunedin City Council will next week be given an idea of the costs to the city of hosting the conference from May 7 to 10, and also the estimated benefits. The city learned last week it would host the tourism industry event next year, bringing up to 1200 international travel and tourism buyers, media and New Zealand tourism operators to Dunedin. It will be the first time the event, run by Tourism Industry Aotearoa (TIA), has come to Dunedin and the first time it has been hosted outside Auckland, Rotorua, Christchurch or Queenstown since it began in the 1960s. Trenz is an opportunity for New Zealand tourism operators to sell their product to buyers, effectively overseas travel agents who put together itineraries for overseas tourists. Attracting more than 350 buyers to experience the tourism products on offer here is considered a huge coup. On average, each buyer sends 4000 visitors a year to New Zealand, totalling 1.5 million. It comes as figures show New Zealand’s tourism market is expected to continue to grow strongly, topping $15 billion by 2023. Tourism contributes more than $690 million to Dunedin’s economy every year.
Read more

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South Islanders woke up to a snowy start this morning with the first Antarctic blast of winter https://t.co/AJsIxO5Pwe pic.twitter.com/0jBfYGEORq

— nzherald (@nzherald) May 19, 2017

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Meanwhile, although we (‘our stock’ NZ) and the UK farm gate look pretty much the same……

‘Herdwick Shepherd’ aka James Rebanks (@herdyshepherd1) farms Herdwick sheep in the English Lake District. Author of bestselling memoir, The Shepherd’s Life:

Still cold up on the fells pic.twitter.com/VsFBL9yJnX

— James Rebanks (@herdyshepherd1) May 19, 2017

Best thing this week… pic.twitter.com/CKD0DJtAxj

— James Rebanks (@herdyshepherd1) May 19, 2017

### ODT Online Saturday, 20 May 2017
OE to Britain set to get tougher
Prime Minister Bill English says the Conservative Party’s new plans to clamp down on immigration will sting New Zealanders wanting to live in the United Kingdom, including on the traditional OE, but there is little he can do until Brexit is completed. The British party’s election manifesto includes plans to drastically cut net migration from 273,000 to less than 100,000 by targeting students and those on working visas. It proposes cutting the number of skilled migrants to get visas, higher levies on employers who take on migrant workers and tripling the National Health Service immigration health surcharge from £200 to £600 ($NZ380 to $NZ1130) a year for those in the UK on visas of more than six months and 450 for international students. That surcharge increase will also affect those on the traditional OE, although there is no mention of scrapping the two-year youth mobility visa which allows young New Zealanders to get a two-year visa to work and travel in the United Kingdom. Mr English said the changes would affect those on their OE but they would have to grin and bear it until Brexit was completed. NZME.
Read more

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Super City mayor Phil Goff has a plan for getting money from tourists – it bears some similarity to that of the Mongrel Mob……

Amid talk of hotel taxes and tourist levies, Winston Aldworth says New Zealanders are missing a bigger opportunity https://t.co/oJNUiMesTL

— nzherald (@nzherald) May 19, 2017

### NZ Herald Thu, 18 May 2017
Winston Aldworth: Seeking the smart money
OPINION What do Phil Goff and the Mongrel Mob have in common? As hundreds of travel industry figures from all around the world gathered in Auckland for last week’s Trenz conference, one of the many topics up for discussion was the Auckland mayor’s enthusiasm for a hotel bed tax on visitors to the city. Meanwhile, up north at Ahipara on Ninety Mile Beach, three German tourists were approached by two local Mongrel Mob members who told them that they were on Maori land, and had to pay koha. They also told the tourists they’d be taking a few of their cigarettes. A tobacco tax, if you will. Perhaps their plan for putting heavy taxes on visitors was inspired by the Super City mayor. Goff’s bed tax is about as blunt an instrument as the Mob’s shakedown. “Look there’s a foreigner! Let’s get a couple of bucks off them.” The airport tax introduced by John Key a year ago is equally clumsy. It’s a travesty that these tariffs are the best we can come up with for making money out of tourism. Yes, other countries put dull levies on visitor arrivals, but that’s no reason to follow suit. We New Zealanders pride ourselves on being innovators, so let’s find innovative ways to get more money out of the tourism sector. Both Goff and Key were ministers in governments that did everything they could to remove tariffs from the dairy trade. Today, the best and brightest marketing wallahs of Goff’s inner circle are putting forward a plan no more sophisticated than one devised by two Mongrel Mob members standing on a Northland beach. I’m not against making money out of tourists — quite the opposite, in fact. I think it’s terrific that our country can be boosted by an industry that encourages us to care for our environment, celebrate the things that make our culture unique and spreads revenue quickly and efficiently to the regions. But how about instead of putting a dumb tax on the visitors, we upsell them? Take their money at the gate for sure, but give them something special in return.
Read more

Enough randomising. More rain and ice falls.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Christchurch housing : ‘If you build the right thing, buyers will still come’

Will they ? How many, how far ?
(if there’s nothing more than service sector jobs available)….

Hmm. In their early contributions to What if? Dunedin, Lee Vandervis and Christchurch Driver [CD] each had the measure of the post-quake new build housing market in Christchurch. Cycling boom and bust, with odd and unexplained connections and financing.

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Link received.
Sat, 4 Mar 2017 at 12:31 p.m.

T H E ● P R E S S

Christchurch’s rental market is oversupplied and freshly-built terraced houses are sitting empty and unsold in the suburbs. How did the city with the real estate market decimated by the earthquakes get here?

According to the Ministry of Business, Innovation and Employment (MBIE), the average rent in Christchurch is falling for the first time since records started in 1993.

### Stuff.co.nz Last updated 18:11, March 3 2017
Christchurch’s housing paradox – the downside of a building boom
By Michael Wright – The Press
Last month, Mike Blackburn bought a house. He and his wife looked at about 40 properties before settling on one. As they traipsed through the preceding 39, a pattern emerged. “Every second house we looked at was empty,” he said. “That’s just a telling figure. Where have all these people gone?” The significance of what he saw wasn’t lost: Christchurch, the city once desperately short of houses after thousands of them were wrecked by earthquakes, had a lot more accommodation than it used to.

Blackburn is a management consultant, specialising in construction clients. When small or medium-sized operators are struggling, they go to someone like him for advice on how to get through. As part of his work, he gets the raw consenting data from the Christchurch City Council each month – location, builder, value, type of consent (earthquake or business as usual), intended use – to build a picture of the marketplace. He saw a clear vision. “There was a major rush, mostly by the group home builders, to build a lot of houses really quickly,” he said. “What’s happened is now everyone who’s needed a house has pretty much got one and they’re still building them. They’re building them flat out . . . all these development companies are month after month submitting 20-30 consents each for essentially spec housing.” The numbers have tapered off of late. The council peaked in 2014 at more than 3200 consents issued – about 270 a month – before drifting back down to just over 2100 last year. 2017 is already tracking below that. As Blackburn sees it, though, the damage has already been done. “There will be a correction. The number of buildings and the total number of dwellings being built will fall off really rapidly. It’ll go below that business as usual level, because we’ve got a major oversupply at the moment. Potentially that effect could run on for the building sector in Canterbury for the next two, maybe three years.”

….Anecdotally, rental properties are in such abundance landlords are dropping prices and offering incentives to secure tenants. This week, Stuff reported on swathes of empty multi-unit houses languishing in suburban subdivisions. “[We] certainly won’t be building any more of those,” construction boss Mike Greer said at the time. Then there is the data. Compare Government valuer QV’s latest monthly average house values for each region against last February and Christchurch does not do well. QV measures the city in six disparate parts and they all appear in the bottom 11 spots for value increase [three of the other five are the Selwyn, Waimakariri and Ashburton districts]. Rises in the Christchurch zones range from 0.7 per cent [east] to 3.9 per cent [southwest], which barely registers against most of the rest of the country; basking in double-digit growth all the way up to an eye-watering 29.5 per cent jump in the Queenstown-Lakes district [average house value $1,039,434].

Market forces were …. promoting even more building. The Reserve Bank’s loan-to-value ratio (LVR) restrictions on banks lending to home buyers exempted new builds. A home buyer generally needed a 20 per cent deposit, but a home builder could get finance with much less. Christchurch, in the middle of an insurance-driven building bonanza, didn’t need that kind of encouragement.

“People have gone, in my mind, somewhat berserk in building new, to try and fill that [housing] void,” Canterbury Registered Master Builders president Ivan Stanicich said. “Some of the bigger building companies in Christchurch grew exponentially, hired more and more people and that was only ever going to be for about a three-year sweep. Now we’re seeing the reverse of that where building companies are actively downsizing. That’s well known in our industry. Nobody wants to shout that from the rooftops, because it’s not a positive business outlook, but it’s quite understandable. If you don’t, any gains you’ve made through the building boom, they’re just going to be lost in your overheads.”

Property manager Tony Brazier saw the problem coming. In October 2014 he penned a column in The Press warning of the dangers of over-building. “The housing rebuild must be carefully monitored so we do not end up over-supplied,” he wrote. “This phenomenal house building pace should alert us to the fact that, whereas in the past it takes only a few builders struggling to sell their new-builds to signal an end to the cycle, this time could be different. It may take large contractors not being able to sell whole subdivisions before the message gets through.”

….How did it come to this? The first answer is earthquake insurance money finally caught up with, and overtook, the market. As Stanicich said – builders going berserk trying to fill the housing void. In the meantime, claims were settled and damaged stock repaired. An unforeseen element of this was the brisk trade in as-is, where-is houses – earthquake casualties that were uninsurable but livable. Landlords snapped them up and, in a stressed rental market, had no problem finding tenants. The by-product was Christchurch’s housing stock ended up not quite as depleted as first thought.
Read more + Charts

Recent Press articles:
Christchurch’s terraced homes struggling to sell as housing market levels
Christchurch landlords lower rents due to ‘oversupply’ of properties
Cash and rent-free offers fail to lure tenants as Christchurch housing….
City’s rental crisis ‘at breaking point’

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█ Thoughts immediately turn to Dunedin City Council and DCHL’s commitment as of 1 August 2016 to the new Delta ‘joint venture’ (including the Noble types) at Yaldhurst. After all the legal stoush, will properties sell ?

[Gurglars] Hoarding at Yaldhurst subdivision, 14 February 2017

[Christchurch Driver] Yaldhurst subdivision, 13 February 2016

[Christchurch Driver] Yaldhurst subdivision, 21 January 2016

[villagelife.co.nz]

[realestate.co.nz] Yaldhurst Village Mortgagee Tender, 15 December 2015

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BACK WHEN (2014), Mike Greer Homes NZ ramped up production to rehouse people in post-quake Christchurch, it was a genuine and concerted effort:

Where there was bare land a year ago, a factory now stands ready to reshape the residential construction industry.

### Stuff.co.nz Last updated 05:00, November 22 2014
House factory ready to roll
By Alan Wood – The Press
As Mike Greer and Bill Gee watch the emergence of their “high volume” residential panels factory, they have no concern they will contribute to an oversupply of new homes. The $14 million industrial factory development includes $5m plus of specialist German machinery to be used to rapidly construct the panels for residential homes. Greer, “a chippie by trade”, is optimistic about the Rolleston-based factory’s place in a Canterbury and Auckland building boom. “This is fantastic for the residential construction industry. No-one in New Zealand has ever seen anything like this,” he says of the joint venture company Concision, which he and Gee own. Asked about any slowdown in the Canterbury rebuild and residential market, Greer says he has hundreds of pre-sold homes he is yet to make a start on.
Is there any danger of an overbuild by builders in the region?
“Well wouldn’t that be good. Everyone is complaining about housing affordability. The only way to fix that is supply,” Greer responds. He says there are signs interest rates have stabilised and may even come down. From April 1, a Government subsidy on first home buyers of new homes in Canterbury will be introduced. A buyer could get up to $20,000 towards a $450,000 home. “So that’s really going to stimulate things at that end of the market,” Greer says. The Reserve Bank was also signalling that eventually . . . it will remove loan to value ratio restrictions that have made it more difficult for first home buyers to get loans.
Read more

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Related Posts and Comments:
● 17.2.17 Gurglars visits the Delta/Noble JV subdivision at Yaldhurst
● 11.3.16 Delta peripheral #EpicFail : Stonewood Homes and ancient Delta….
● 10.3.16 Noble Subdivision next on the shopping list !!! You couldn’t….
6.3.16 Delta #EpicFail —Noble Subdivision : Tea & Taxing Questions
6.3.16 Delta #EpicFail —Nobel Subdivision : A Neighbour responds
5.3.16 Delta #EpicFail —Noble Subdivision —Epic Fraud
4.3.16 Delta —Noble Subdivision #EpicStorm Heading OUR WAY
4.3.16 Delta #EpicFail Noble Subdivision : Councillors know NOTHING
2.3.16 Delta #EpicFail Noble Subdivision : A Dog, or a RAVING YAPPER?….
1.3.16 Delta #EpicFail… —The Little Finance Company that did (Delta).
29.2.16 Delta #EpicFail Noble Subdivision : NBR interested in bidders
28.2.16 Delta #EpicFail Noble… If I were a rich man / Delta Director
27.2.16 Delta #EpicFail Noble Subdivision Consent : Strictly Optional
27.2.16 Delta #NUCLEAR EpicFail —Noble Subdivision : Incompetent…
25.2.16 Delta #EpicFail: Mayor Cull —Forced Sale Fundamentals 101
24.2.16 Delta #EpicFail —Noble Subdivision : Cameron, Crombie & McKenzie
23.2.16 DCC: DCHL half year result to 31 December 2015
19.2.16 Delta: Update on Yaldhurst subdivision debt recovery
15.2.16 Delta / DCHL not broadcasting position on subdivision mortgagee tender
30.1.16 DCC Rates: LOCAL CONTEXT not Stats —Delta and Hippopotamuses
29.1.16 Delta #EpicFail —Yaldhurst Subdivision ● Some forensics
21.1.16 Delta #EpicFail —Yaldhurst Subdivision
21.1.16 DCC LTAP 2016/17 budget discussion #ultrahelpfulhints
19.1.15 Housing affordability in this country is “just hopeless” –Hugh Pavletich
10.1.16 Infrastructure ‘open to facile misinterpretation’…. or local ignore
15.12.15 Noble property subdivision aka Yaldhurst Village | Mortgagee Tender
21.9.15 DCC: Not shite (?) hitting the fan but DVL
20.7.15 Noble property subdivision —DELTA #LGOIMA
● 1.4.15 Christchurch subdivisions: Heat gone?
24.3.15 Noble property subdivision —DELTA
23.3.15 Noble property subdivision: “Denials suggest that we have not learned.”
17.3.15 DCC —Delta, Jacks Point Luggate II…. Noble property subdivision

● 14.5.14 (via DCC website) Larsen Report February 2012
A recent governance review of the Dunedin City Council companies was conducted by Warren Larsen.

● 20.3.14 Delta: Report from Office of the Auditor-General
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point

█ For more, enter the term *delta* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

D’oh [Mayor Cull can’t name all the successful manufacturers at #Dunedin]

Rather, Daaave promotes the SHONKY programmed spend on non-essential CBD tart-ups. Not reprioritising council budgets then, Daaave….. to solve the Superduper-Mystery of council-owned Aurora/Delta LOST OR MISPLACED FUNDS, WHERE DID THEY GO ? WHERE WERE THEY SPENT ? Hundreds of millions of dollars lost from Otago ratepayers and electricity users, Daaave…..
You are going to make them pay again.

ODT 25.2.17 (page 34) tweaked

[click to enlarge]

Otago Manufacturers need a Safe and Secure supply of Electricity.
The Mayor of Dunedin is making sure this won’t happen.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

No news : Appointment of Group CFO

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Consternation of Various Sorts

We note the Dunedin City Council’s very poor financial position generally, in face of the ‘explosive’ DCC-owned Aurora/Delta collapse of the Otago power network – notable for continuing poor governance and management, with contingent lack of transparency and accountability – affecting ratepayers and residents in three distinct council areas (DCC, CODC, QLDC); the city council’s snail-like attendance to infrastructure maintenance and upgrades including implementation of three waters strategy; the city council’s ongoing out-of-control stadium fiasco; and ALL The Council Debt / debt servicing costs etc etc – for the very low, ever passive and aging ratepayer base.
FANTASTIC TIMES.

How interesting then that DCC has – as yet – failed to appoint a new Group Chief Financial Officer following the resignation of Grant McKenzie last year (see announcement 11 June 2016 via ODT).

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Fri, 12 Aug 2016
ODT: Departure reshuffle
The departure of the Dunedin City Council’s group chief financial officer, Grant McKenzie, has triggered a minor reshuffle within the organisation. The rejig includes a temporary structure while Mr McKenzie’s replacement is recruited, but the council has also taken the opportunity to realign job titles and responsibilities for two of the council’s senior managers. […] Council financial controller Gavin Logie has also been named acting chief financial officer until Mr McKenzie’s replacement is named.

Sat, 11 Jun 2016
ODT: Sir Julian stands down, McKenzie appointed CEO
Sir Julian Smith, chairman and managing director of Allied Press, publisher of the Otago Daily Times, is stepping down from the day-to-day running of the company after nearly 40 years. Sir Julian (72), who will remain as chairman, told staff yesterday he has appointed Dunedin City Council group chief financial officer Grant McKenzie as the new Allied Press chief executive officer.

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Dunedin City Council – Media Release
DCC Appoints Treasury Manager
This item was published on 10 Sep 2014
Richard Davey has been appointed to the new position of Dunedin City Council Treasury Manager. Mr Davey, who is originally from Dunedin, has had more than 21 years of banking experience in New Zealand and Australia. His experience centres on dealing with corporate treasuries and solving their risk management and funding issues. As Treasury Manager, Mr Davey will oversee Dunedin City Treasury Ltd – a DCC-owned company provides funding and financial services to other companies in the Dunedin City Holdings Ltd group. Mr Davey will report to Group Chief Financial Officer Grant McKenzie. Read more

Dunedin City Council – Media Release
Group Chief Financial Officer Appointed
This item was published on 14 Oct 2013
The University of Otago’s Director of Financial Services, Grant McKenzie, has been appointed as the Dunedin City Council’s Group Chief Financial Officer (GCFO). Announcing the appointment of Mr McKenzie to this newly-created role, DCC Chief Executive Paul Orders says, “Grant will bring a wealth of knowledge and experience to the role and will be instrumental in ensuring the effective and efficient management of DCC group finances.” […] The new position of Group Chief Financial Officer replaces the DCC’s Chief Financial Officer (currently a vacant post), with the role expanded to include the provision of financial advice and support to the Board of Dunedin City Holdings Limited (DCHL). The role will also create more cohesive financial management between the DCC and Dunedin City Holdings Limited. Twenty eight applications were received for the position, from New Zealand and overseas.
Read more

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It seems DCC has slumped and trailed until 27 February (20 working days) to respond formally to my request for official information – with no phone call received (see postscript).

Tomorrow Monday is D-Day. No notice of extension has been received.

HOW HARD IS IT REALLY TO ANSWER BASIC QUESTIONS—
20 working days ? Get real DCC.

█ OFFICIAL INFORMATION REQUEST

From: [DCC Governance Support]
Sent: Friday, 3 February 2017 11:31 a.m.
To: Elizabeth Kerr
Subject: Acknowledgement of LGOIMA request

03-Feb-2017

Dear Ms Kerr,

Official information request for: APPOINTMENT OF GROUP CHIEF FINANCIAL OFFICER

Reference Number: 289707

I am writing to acknowledge receipt of your official information request dated 27-January-2017 for information regarding the APPOINTMENT OF GROUP CHIEF FINANCIAL OFFICER as follows:

1. When will the DCC appoint a Group Chief Financial Officer (GCFO) to replace Grant McKenzie ? 2. For what reason(s) has this appointment been delayed ? 3. Have applicants for the position been short-listed ? 4. Is there anything thing else DCC wants to say about the appointment process ?

We received your request on 27-January-2017. We will endeavour to respond to your request as soon as possible and in any event no later than 27-February-2017, being 20 working days after the day your request was received. If we are unable to respond to your request by then, we will notify you of an extension of that timeframe.

Your request is being handled by [Governance Support]. If you have any queries, please feel free to contact [Governance Support] on 03 477 4000. If any additional factors come to light which are relevant to your request, please do not hesitate to contact us so that these can be taken into account.

Yours sincerely

[Governance Support]

P.S. I have also sent your questions to our chief executive Sue Bidrose, as she may wish to provide an answer to you directly by phone or email.

Governance Support Officer
Dunedin City Council

Related Post and Comments:
10.6.16 g’bye & ’ello

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Michael Lewis : The Undoing Project —Interview with Kathryn Ryan #RNZ

Link received 27/12/2016 at 3:21 p.m.
Message: A lesson for some Dunedin ‘luminaries’ perchance?

It’s amazing how resistant, particularly powerful men, are to people coming from outside and giving them advice on how to make decisions.
—Michael Lewis

RNZ National
Trust your gut? Think again
From Nine To Noon with Kathryn Ryan, 10:09 am on 21 December 2016

[Abridged.] Michael Lewis is one of the most famous non-fiction writers in America. He has written 14 books, edited one and is a regular contributor to Vanity Fair. His books include the global best-selling Flash Boys – an expose of high speed scamming in the stock market; The Big Short: Inside the Doomsday Machine – an account of shady financial transactions and accounting that led to the 2008 global financial meltdown and on which the film The Big Short was based and Moneyball, the story of a maverick outsider who beat the system.

Lewis’s new book is called The Undoing Project in which he profiles the professional and personal relationship between the behavioural psychologists Daniel Kahneman and Amos Tversky. Kahneman and Tversky’s work shed new light on how humans make decisions when faced with risk and uncertainty. They established that we generally trust our gut instinct, over the evidence, to guide our decision-making.

[simonandschuster.com]

Lewis says he came across Kahneman and Tversky after writing Moneyball. He says the two were very different personalities and that made for the perfect team.

“They sensed in the other something they wished they had. Kahneman is an unbelievable creative mind he really has a mind more like a poet or a novelist filled with these flashing insights about human nature. Tversky wanted to be a poet but he has a scientific, logical mind. He’s a brilliant logician.”

The two decide to come together and study how the human mind works. That work became an examination of human fallibility – the weakness of the human mind. They designed experiments to show how our mind plays tricks on us.

One they stumbled on was a phenomenon they called anchoring that skews human decisions. They also established that we are terrible at assessing risk – we rate risk based on what’s most memorable which tends to be what happened most recently.

[marketwatch.com]

“People long for the world to be a far more certain place than it is, instead of dealing with uncertainties they tell stories that make it seem much more certain and respond to stories that make it seem much more certain than it is. A politician speaking in certain terms as if he’s infallible has weirdly an advantage – even though we shouldn’t believe him. We’re very vulnerable to people who simulate certainty.”

Lewis is unsure whether this inbuilt fallibility can be fixed.

“I hate to sound fatalistic but one of the big takeaways from [Kahneman and Tversky’s] work is just how hard it is to correct for human fallibility – they equate cognitive illusion with optical illusion.”
Read more

█ Audio | Download: Ogg MP3 (26′07″)

—

Michael Monroe Lewis (born Oct 15, 1960) was born in New Orleans to corporate lawyer J. Thomas Lewis and community activist Diana Monroe Lewis. He attended the college preparatory Isidore Newman School in New Orleans. He then attended Princeton University where he received a BA degree (cum laude) in Art History in 1982 and was a member of the Ivy Club. He went on to work with New York art dealer Daniel Wildenstein. He enrolled in the London School of Economics, and received his MA degree in Economics in 1985. Lewis was hired by Salomon Brothers and moved to New York for their training program. He worked at its London office as a bond salesman. He resigned to write Liar’s Poker and become a financial journalist. A contributing editor to Vanity Fair since 2009. More at Wikipedia.

Vanity Fair – Hive: Politics
█ Donald Trump and the Rules of the New American Board Game
By Michael Lewis Dec 18, 2016 7:00 pm
While volunteering at his daughter’s new high school, Michael Lewis watched kids of all races and backgrounds react to Trump’s election with a peaceful demonstration of their grief and fear. It inspired a game he’s devised for thinking about the future. Link

Vanity Fair – Hive: Politics
█ Obama’s Way
By Michael Lewis Sep 11, 2012 6:12 pm
To understand how air-force navigator Tyler Stark ended up in a thornbush in the Libyan desert in March 2011, one must understand what it’s like to be president of the United States—and this president in particular. Hanging around Barack Obama for six months, in the White House, aboard Air Force One, and on the basketball court, Michael Lewis learns the reality of the Nobel Peace Prize winner who sent Stark into combat. Link

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: Michael Lewis by Tabitha Soren / W.W. Norton Company
blackwhite by whatifdunedin

DCHL/Aurora/Delta ‘PR fashion statements’ fb DCC rates increases

Otago Daily Times Published on Dec 11, 2016
Aurora Energy to implement review’s recommendations
A report on beleaguered Dunedin City Council-owned companies Delta and Aurora has called for a major shake-up to the way the companies are run.
[—Aurora had been guilty of placing too much emphasis on providing dividends to the council and keeping debt levels under control as opposed to investing in the network.]

█ Deloitte review report – Aurora Energy and Delta Utilities (PDF, 1.7 MB)
Review of Aurora Energy Limited/Delta Utility Services Limited – Network Safety Concerns.

—

What Shocks.

If the Otago Community has a BILLION OR SO DOLLARS WORTH of network replacements owed to it, but for the pleasure the Community must pay these sums Again —as well as having to meet the not insubstantial cost of new build facilities across the growth-focused districts of Central Otago— with the self-congratulatory psychology of the Companies and INDIVIDUALS running the Dangerous and Degraded Aurora/Delta power network, stringing along the bumbling Dunedin City Council as OVERLORD (meanwhile running its ‘static’ city)…….. exactly how does that affect DUNEDIN RATEPAYERS, do you think. [DCC steered by “SpongeBob” running the holding company; the mayor inane factotum to the GOBs.]

So yeah, if there’s no word yet (?) on how the INDIVIDUALS RESPONSIBLE for constant rates increases (exceeding New Zealand’s rate of inflation) will be cleaned out financially themselves (along with their private trusts), with jail sentences to serve…….. Then you stand to be OUTRAGED by anything these knaves are saying.

We can’t call them liars.

But think about what these immoral money stealing mongrel-individuals are costing us. You are being robbed, mercilessly, repeatedly, over and over. Public funds through your rates have gone out both front and back doors in almost limitless fashion. The male mafia have been in your pockets doing what they like —across nefarious deals and rorts for “the past 25 to 30 years”.

You have been fully violated, the power network you rely on is completely stuffed. ‘They mongrels’ are not simply incompetent.

Personally, you bear the price; your extended family and descendants pay the price. ‘They mongrels’ each buy an expensive house or three in Queenstown Lakes, they live off the spoils, in style —while you and yours, your businesses and community run desperately out of hope for better times. Clearly, the Bad are being replaced by more of the Bad with unedifying track records.
Same, same again.

—

Otago Daily Times Published on Dec 12, 2016
Delta whistleblower Richard Healey
Mayor Dave Cull said the whistleblower, Richard Healey, had been largely vindicated. The poles network was not as safe as it should be.

—

Newly-appointed chairman Steve Thompson [ex Deloitte head] said chief executive Grady Cameron would not be sacked as a result of the failings identified in the report, as he had confidence in his leadership. “I think he’s done a good job in difficult circumstances.”

### ODT Online Tue, 13 Dec 2016
Shake-up agreed for Delta, Aurora
By Vaughan Elder
Dunedin City Council-owned companies Delta and Aurora are in for a major shake-up. The planned changes come as a result of recommendations included in a review by consultant Deloitte into Delta/Aurora network safety concerns, and in particular accusations Aurora dangerously mismanaged its electricity network and left thousands of poles to rot. The shake-up would involve having separate boards and chief executives for the two companies and introduce a more proactive approach to maintaining the network. After the review, commissioned by Dunedin City Holdings Ltd, was released yesterday, Mayor Dave Cull said the changes could have a significant financial impact on the council, resulting in rates increases.

“I don’t believe it’s unsafe, but we just need to do more work on getting the infrastructure to a better level than it currently is.” –Steve Thompson

Mr Healey said he was satisfied for the most part with the report, but not with the response from Mr Cull, DCHL chairman Graham Crombie and Mr Thompson, who he said were all still trying to minimise the extent of the problem …. Mr Thompson’s claim the network was safe and his continued confidence in Mr Cameron were “mind-boggling”, Mr Healey said.
Read more

Brief me, Paula.

—Without a Safe and Secure power supply for Otago, new Business Development, Tourism and Productivity are severely impacted, Prime Minister.

Who is responsible?
—Dunedin City Council, sir.

Agh, that lag Cull.
—He hasn’t mentioned climate change this time, sir.

█ For more, enter the terms *delta*, *aurora*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images: stuff.co.nz – Richard Healey | Bill English PM

Deloitte report released #Delta #Aurora

Updated post
Mon, 12 Dec 2016 at 11:56 p.m.

█ aurora-report [supplied by DCC]

Deloitte’s Steve Thompson – appointed to the Delta and Aurora Boards in 2015 – is to head two (new) separated (“armslength”) companies.

Grady’s future is between the lines.

—

Monstrous understatement from our Mayor Cull:
“The poles network was not as safe as it should be.” ….LOL

Dear god, there appear to be a few capital raising issues to curtail the service delivery promised. Further, Dunedin City Council will receive the wrath of two other councils…. Let’s not be naive about the extent of problems with the DANGEROUS NETWORK. This is not a POLES ONLY exercise. And where, oops, have we seen Steve Thompson before, Deloitte and Otago Rugby governance. South Auckland pokie bars, ORFU, anyone ?

An inquiry into thousands of failing power poles has recommended major changes to the lines companies involved. Thousands of rotting power poles are due for replacement in Otago. (RNZ)

### radionz.co.nz 38 minutes ago
Rotting power pole whistleblower vindicated
By Ian Telfer, Otago-Southland Reporter
The Dunedin City Council-commissioned inquiry was one of three started in October after a whistleblower revealed almost 3000 power poles in Dunedin and Central Otago, managed by Aurora Energy and Delta, needed urgent replacement. Councillors debated Deloitte’s report, which covered the scale of the problem and management, for more than two hours. The report recommended health and safety upgrades and for Delta and Aurora’s board and management to split. Mayor Dave Cull said the whistleblower, Richard Healey, had been largely vindicated. Mr Healey accused the management of not understanding the scale of the problem and of not seeing just how dangerous it was. Deloitte found serious systematic problems in the network.
Read more

[Audio] Inquiry into failing power poles recommends big changes  (3′01″)
RNZ Checkpoint (12 Dec 2016)

█ For more, enter the terms *delta*, *aurora*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Deloitte report pending —Public Notice at ODT | Facebook entry

ODT 9.12.16 (page 20)

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█ Facebook: Richard Healey

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Wed, 7 Dec 2016
ODT: Delta, Aurora report for release by Monday
A report on under-fire Dunedin City Council-owned companies Delta and Aurora is expected to be made public by Monday. Mayor Dave Cull said he hoped the report could be released before that day, following a non-public council discussion on the issue that lasted well over an hour yesterday. Dunedin City Holdings Ltd director Keith Cooper faced a grilling from councillors when he gave them a “progress report” on an investigation by consultant Deloitte into the companies. Cont/

Sat, 3 Dec 2016
ODT: Report discussion behind closed doors
Discussion of a Deloitte report on troubled council-owned companies Aurora and Delta on Tuesday will be behind closed doors, and it is uncertain when they will make it into the public arena. Mayor Dave Cull said the report was not finished yet, despite predictions of an early December completion date. It will be discussed by the Dunedin City Council on Tuesday in a non-public session. Mr Cull said the Dunedin City Holdings Ltd board got a progress report on the investigation yesterday. The board would pass on that report at the council meeting on Tuesday. The agenda for the meeting noted discussion of the report would be in a non-public section of the meeting as “the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably  to prejudice the commercial position of the person who supplied or who is the subject of the information”. As well, the withholding of the information was necessary to enable the council to “carry out, without prejudice or disadvantage, commercial activities”. Cont/

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta/Aurora : Nobody’s willing to call it after misrepresentations

### ODT Online Wed, 7 Dec 2016
Delta, Aurora report for release by Monday
By David Loughrey
A report on under-fire Dunedin City Council-owned companies Delta and Aurora is expected to be made public by Monday.
Mayor Dave Cull said he hoped the report could be released before that day, following a non-public council discussion on the issue that lasted well over an hour yesterday. Dunedin City Holdings Ltd director Keith Cooper faced a grilling from councillors when he gave them a “progress report” on an investigation by consultant Deloitte into the companies.
Read more

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta/Aurora : The Dirty Twist —EXTREME Misrepresentation by Delta, E tū union & staff reps

Received from Richard Healey
Friday, 2 December 2016 11:36 p.m.

—

Lies, damned lies and Delta

Today a media statement, produced by Delta senior management, representative staff and the E tū union representative, was released. It is important to stress at this point that I’ve been told that the vote to release was supported by a minority of the Delta workers present. I’m told that 15 hands went up in favour out of the hundred people present.

The decision to release was made by the E tū union organiser present. Are your alarm bells ringing yet? Mine are.

Here’s the bit most people will miss:

Delta senior management, representative staff and the E tū union representative have agreed a joint statement that reflects the belief of all concerned,

You will notice that it does not say that the meeting authorised the release – yet it claims that it reflects the belief of “all concerned”. I’ve had plenty of phone calls from “all concerned” and they have stated categorically that it does not reflect their beliefs, read on…..

Here’s the release:

2 December 2016

Media Release

Joint statement following meeting of Delta management, staff and E tū union

Yesterday, meetings were held with representatives of staff, senior management of Delta, and E tū, the union. Similar discussions are planned involving Central Otago-based staff.

Discussions were held concerning the condition of the Aurora Energy electricity network and how risks are being managed for staff, contractors and the public. All parties are in agreement that it is in everyone’s interests that we work together productively as Delta carries out a significant uplift in capital and maintenance work across the Aurora Energy networks in Dunedin and Central Otago.

Delta senior management, representative staff and the E tū union representative have agreed a joint statement that reflects the belief of all concerned, they commented:

“Firstly, that the Aurora Energy network needs significant asset renewal work and that the age and condition of existing assets presents a higher level of risk than would be preferred.

RJH: That statement sounds suspiciously like an admission that there is a REAL PROBLEM – not merely a problem of perception, as Grady Cameron has consistently maintained. Let us hear that admission from Grady himself, not from a union organiser masquerading as a PR consultant doing the softened story routine. Come on Grady…we are all waiting….

None of us can now change past decisions made over decades about maintenance and investment in the network.

RJH: Man up Grady. My view is simple, it is not credible for you to say that “None of us can now change past decisions made over decades” when you are the person who, for almost all of the last decade, has been key in making those frankly appalling decisions. I’m sure that it would be great for you to be able to brush your past actions under the carpet. Wake up mate, it’s not happening.

We can change the way we manage assets and have already started doing that, however it will take time to address all the issues. Staff and management are committed to working closely together to complete the upgrades with a high level of safety caution and with public safety foremost in our minds.

RJH: Really? You’ve started doing that? Let’s review how that program is going. Your program director just quit, your General Manager asset management just quit, I see an ad today for a new manager of strategic planning, hmmm…. Poles replaced by the “accelerated” program to date? Zero, zip, nada – and counting.

“Secondly, that the health and safety of Delta staff and the public who live around the Aurora network is the primary responsibility of the company, DCHL and the DCC who ultimately own the network.”

RJH: Ah ha, the people who received a detailed report on this problem in 2010, a report that listed harm to staff and the public as potential outcomes of doing nothing, yeah, I feel [there] is a credibility problem here, how about you??

“Thirdly, we would like the public to know that Delta workers are doing their best to continue security of electricity supply and public safety. There may be more periods of planned power outages as we undertake the network upgrades and ask the public to work patiently with us.

RJH: finally, something we can agree on.

“Fourthly, that members of Delta’s technical staff who have hands-on knowledge of reported faults and risks will be engaged in how the company describes events publicly to the extent that is reasonably possible given media constraints and in the knowledge that detailed investigations often take time.”

RJH: Wow, that’s a hard hitter, we will talk to staff, but you know how it is with media deadlines. And those reports can take sooooo looooong to write. I wouldn’t be surprised if everyone has forgotten about the problem by the time we get around to reporting on it… in an email… to ourselves.

“Finally, Aurora Energy, and Delta staff, have agreed to work closely together on an enhanced public safety advertising campaign which will start in the near future. This will be about further informing the community about safety around electrical installations, particular hazards that we are working to resolve and general education about safety around the network.”

RJH: What? You’re going to tell people that high voltage lines on the ground really are a danger? Three cheers!!

For media enquiries, please contact:

● Mike Kirwood, Organiser, E tū, 027 591 0038

● Matt Ballard, General Manager Capability and Risk, Delta, 027 703 7044.

Here’s my view.

The majority who did NOT vote to release this statement have not been heard. Their voices are apparently worth nothing. Their voices are, in real terms, valued by Delta as much as their lives. And I think that is not a whole lot.

I believe that the management whom the minority of their colleagues are prepared to ‘work with’ have, for years, knowingly sent these guys to work on an unsafe network with no intent to make it safe…in fact their inaction made it less safe, day by day, year by year.

They have instructed these workers to not apply do not climb tags.

They have manipulated data, the Xivic debacle, on unsafe structures with the effect that the true number of unsafe structures was hidden.

They have failed to investigate asset failures appropriately and often not at all.

They have consistently denied their own workforce access to the information it needs to make decisions which truly are the difference between life and death, for workers and the unwitting public alike.

These same managers were simultaneously accepting awards for exceptional management performance!

Roger Steel must be spinning in his grave.

Shame on you all.

Finally, a word from Delta’s glorious leader at, believe it or not, zeroharm.org.nz on October 19th this year!!

ZeroHarm [click to enlarge]

Source: FB post

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Oi Grady— “It’s Us, Delta’s Electrical Workforce, unanimously!”

wild ride [cheatsheet.com]

—

Received from Richard Healey
Thu, 1 Dec 2016 at 10:15 a.m.

https://www.odt.co.nz/news/dunedin/dcc/deltas-explanations-farcical-staff-believe

After a month of silence, the operational staff at Delta have finally spoken out. Despite massive pressure to remain silent they have come clean on their concerns. More than a hundred staff, more than half non-union, gathered yesterday over their safety concerns. The union asked their members to vote – unanimous support for the motion. The non-union staff asked that their vote be taken – unanimous support for the motion.

Here are some verbatim clips from a message that they sent to Grady, the board, the council and the rest of Dunedin:

“much of the network is now in a run-down state”…..

“it is time Aurora and Delta management admitted there are safety issues on the network”….. 

“Delta needs to ensure, through talking to the workers involved, that information they release to the media about faulty equipment and safety issues is accurate and factual, something which has been sadly lacking so far”….. 

“They need to…… surround themselves with the best people to plan and prepare for the massive task ahead.”…..

“To continually blame the problems and safety issues on an aging network when we all know the problems have arisen through lack of maintenance, lack of planning….. is quite frankly farcical.”

“the council needs to begin an inquiry, as to why the company structure it set up, and the management of those structures has led to such a prolonged period of poor maintenance and a lack of capital investment.”…..

“our greatest concern is safety for the public, followed by their security of supply we believe the continual denial of these problems is preventing progress for resolving the issues and not working in the best interest of the public and workers alike.”

Grady’s response is: “We have regular communications with our staff, but we can always do better and one of the things we will be discussing is how we can better meet their needs for better information.”

That’s why you’re the boss Grady! I would have read that letter as a damning indictment on your leadership and a stinging criticism of what appears to me to be an unconscionable attempt to cover up the failings of the network you operate at the expense of your workers’ safety and safety of the public. You on the other hand see it as a polite call for more information.

Get Gyroscope Johnson to turn down the speed on the Delta spin machine, I think that you’re all getting really giddy.

Apparently you’re meeting with a group to discuss this today. Will Derek Todd, the now ex General Manager of Asset Management be going? I understand from your email late last night that his resignation is with “immediate effect”.

[ends] FB post

—

O when the Saints go marching in
When the Saints go marching in
O Lord, I want to be in that number
When the Saints go marching in

There is by now a TEAM of whistleblowers plugged in at Delta, with Richard Healey determinedly positioned as external generator.

How DIABOLICAL At Work does it have to get before unionised and non unionised staff band together to thump their Boss IN WRITING. But the story does not end there.

More insights arriving daily…. on how Grady Cameron Is Not Coping as Chief Executive.

This, as Public Knowledge turns to Public Quandary :
WHY IS Mr Cameron still ma-LINGERING at the sinking helm.

Then too pull out your black armbands in memory of the company directors whether honest and law abiding or in the Vastly Bleak alternative. Examine, if you will, the nasal hairs of DCHL’s SpongeBob Crombie, wiping the floor as *** controller of all things DCC, temporarily.

spongebob’s hiccup [giphy.com]

—

T H E ● N E W S
The Otago Daily Times has worked strenuously to raise critical public awareness of Delta/Aurora’s dangerous and degraded power network:

1.12.16 ODT: Delta’s explanations ‘farcical’, staff believe
30.11.16 ODT: Delta staff want answers
30.11.16 ODT: Pole request not ‘overly reactionary’
28.11.16 ODT: Aurora in firing line over policy
28.11.16 ODT: Delta payments to stadium queried
26.11.16 ODT: DCC takes pole risk seriously, CEO says
26.11.16 ODT: The questions we asked Delta/Aurora
25.11.16 ODT: Cameron cancels Delta’s end-of-year functions
25.11.16 ODT: Central Otago council tackles Aurora over poles
23.11.16 ODT: Delta/Aurora ‘in good hands with advisers’
22.11.16 ODT: $16,000 spent on consultants
21.11.16 ODT: Leaked surveys show Delta workers’ concern
17.11.16 ODT: Delta denies 6600V danger
12.11.16 ODT: Every day at Delta a ‘storm’
12.11.16 ODT: Network ‘decayed, neglected’
11.11.16 ODT: Delta/Aurora board query for DCHL
9.11.16 ODT: Delta ignored warning
2.11.16 ODT: Aurora’s chief told to ‘man up’
1.11.16 ODT: $30.25m to replace poles
31.10.16 ODT: $30m fast-tracked to replace poles
29 10.16 ODT: Crombie: heads could roll
29.10.16 ODT: The rot must stop
29.10.16 ODT: Hoping husband did not die in vain
29.10.16 ODT: Warned, in black and white
28.10.16 ODT: Criticism for Cull on poles approach
26.10.16 ODT: Delta, Aurora subject of three investigations
22.10.16 ODT: Call for heads to roll at Delta
22.10.16 ODT: Worksafe starts looking into Delta
21.10.16 ODT: Fears poles could kill

xakyxak Uploaded on Jul 26, 2006
Louis Armstrong – When The Saints Go Marching In

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta #EpicPowerFail 7 : Kyle Cameron —The Money or the Bag?

Received from Christchurch Driver [CD]
Wed, 30 Nov 2016 at 10:21 a.m.

>> Like most of Dunedin, in the last fortnight your correspondent has been looking with equal parts of fascination and horror at the torrent of deferred maintenance disasters and associated dissembling from Delta that Vaughan Elder of the Otago Daily Times has wrought upon Aurora. Mr Elder is detonating “aged hand grenade” potheads on an almost daily basis. Delta is surely beginning its death dance.

If readers think that “death dance” is too strong a term and your correspondent is a pothead of a different type, bear in mind the killer statistic revealed when last week Mr Elder publicised the results of Delta’s staff survey : 34% of staff thought that management was “honest” which, put another way, meant that two thirds of the staff considered the management dishonest. Given the preponderance of managers at Delta, this means even some of the managers considered themselves dishonest ! When the managers of an organisation are confident that the management is dishonest, then it is definitely time to do something about it…. However, we can be sure that Deloitte are not going to do anything about it by reporting to DCC what is obvious to all readers of the ODT and What if? : That the Delta and Aurora directors are either corrupt or incompetent to the point of criminal liability under Health and Safety legislation. (Only the first in a long list of fundamental director defects). Mr Crombie can spout excuses all he wants about Deloitte’s alleged “forensic expertise”, the issue is not about forensic expertise but independence and integrity.
Your correspondent has found that accountants’ ethical considerations and field of interest stops precisely at the door of whoever is paying their bill.
Lawyers have a more muscular process and even many lawyers who operate at, shall we say, the barely acceptable margins of their profession have a healthy regard for the disciplinary processes for unethical behaviour. Added to that, there are a number of lawyers available who view taking other lawyers to task as a form of sport. Yes before you ask, your correspondent has seen this in action, and there are regularly reported cases of lawyers being punished by the Law Society.
What your correspondent has not seen, is one accountant taking action against another, or any recent examples of accountants being censured by their professional body. Accountants policing their own ? That won’t work – the cost/benefit is all out of whack. But what we have here is not just one accountant looking the other way. It is the quadruple accountant play for maximum obfuscation and back scratching. One accountant, Mr Crombie (The Godfather) has carefully selected another of the brotherhood, a young go-getter, Kyle Cameron, wanting to make his mark in the Dunedin network (Tartan Mafia if you will). The Godfather carefully explains the rules of the game. The young go-getter knows there may be some short term consequences to him but understands that he will become a corporate career corpse if the rules aren’t followed. The go-getter will question the ‘change manager’ at the bottom of the play, Matt Ballard (Capability and Risk), a former Deloitte brother and member of the tartan clan. The young go-getter will hear no evil, see no evil, and most importantly, find no evidence of deliberate underfunding of the network from 2007 to 2016. That now protects the ‘older’ accountant, the sulphurous Stuart McLauchlan. The go-getter, will report that all is under control, the issues are not new and have been known for a long time. It was just a dreadful and unfortunate coincidence that whistleblower Richard Healey resigned and “some unfortunate publicity” meant it was timely to reveal Grady Cameron’s secret plan to spend $30M on replacing poles. ‘Grady’ will be gently chided for keeping this plan so secret that no one else knew about it and it wasn’t actually in the Long Term Plan, but you know, can’t make an egg without breaking an omelette. To diffuse that particular wet bus ticket, ‘Grady’ will also be commended for his vision and determination to create a safe network out of an aged one. Nothing less should be expected of a Deloitte Young Energy Executive of the Year. (Shameless plug for Deloitte also included).
The villain of the piece will be that Bad Man, John Walsh. He neglected to properly fund the network from the 1990s until his departure in 2009. It is, most definitely, All His Fault.

It hardly needs to be said that what is needed here is not Kyle Cameron, but a lawyer or former judge, someone with some real forensic cross examination talent, who levers the facts from liars and dissemblers every day. Someone with no ties to the incestuous and stifling Dunedin mafia.

However, Mr Crombie is correct that Deloitte does have “forensic” experience – from a besieged client perspective – and that experience is very useful in subtle engineering of the terms of reference, not asking relevant or difficult questions and indulging in Key-style vagueness. Deloitte specialise in appearing to provide a report that involves some gentle chiding, and wet bus tickets, but protects the client from further scrutiny.

In the event Kyle Cameron is the mouse that roared, and actually produces a factual report detailing the disgusting complicity of the directors who created a major public safety hazard by deferring essential maintenance to allow unsustainable dividends to Council, it will be amended by his superiors at Deloitte who have a very simple choice. Do Deloitte want to continue to receive lucrative work from Council, or do they provide a truthful report ? Mayor Cull will do almost anything to avoid ratepayers knowing that they are facing imminent and large de facto rates increases in the form of exponential lines charge increases ….because, huge amounts of Aurora line charges have been squandered on bloated and self-interested management, failed property deals and of course, paying for the stadium, over many years, and for many years to come.
The Crombie and Cull playbook 1 is to get malleable and weak individuals to say what you tell them to, hacking and modifying the facts to suit. Ratepayer funds at risk ? – a trifle as light as air ! What is important is that Mayor Cull and his council’s dividend drug habit is not exposed.

>> All right, readers, stop thinking that someone put genetically modified aggression supplements in the Bells ! Proof of these bald statements you say? Very well, here is the proof….  Until very recently a firm of property management consultants completed Building Warrant of Fitness inspections for the City. Now the firm had a sudden change of ownership recently, which may or may not have had something to do with the “non-voluntary” (careful words needed here readers) ! departure of an individual from the City, not unrelated to someone at the firm, at around the same time.

It appears that the firm may have lacked the necessary, ahem, independence or distance to enable them to provide, shall we say, a more accurate picture of the Building Act compliance status of ratepayer-owned facilities, including the Dunedin Town Hall and Wall Street Mall. When the new owners of the business produced their Warrant of Fitness report this year on those facilities, there was a list – a very long list – of 360 fire rating defects in Wall Street alone. These fire rating defects and other faults dated back to when the buildings were constructed in 2008 and 2011.

(By way of confirmation, If ratepayers care to check the publicly displayed Building Warrant of Fitness at Wall Street they will find there is no certificate, and we understand there are recently lodged official information requests to get to the bottom of this matter).
The establishment, allegedly very unhappy with this burst of unpleasant fire rating revelations from the new and improved firm, may have said words to the effect of “We have 50 buildings that need inspections ! Do you understand what we mean?” …. “We want you to issue the WoF on the basis that we will get around to do some of the work when we feel like it, when we are good and ready and not before !” (We could call this the Aurora option….). The response from the new firm was basically, “We have standards and professional obligations, and we can’t certify something on that basis as you have a record of ignoring previous identified serious faults.” We understand the establishment was then invited by the new firm to employ a specialist Fire Engineer to review the list and the new firm’s report.

So what did the establishment do ? Did it immediately start work on fixing the problem ? Of course not, it sacked the new firm from all work for having the cheek to put in writing things that were deemed “inconvenient”.

Kyle Cameron, what will it be ?

Truth or Consequences?
The Money or the Bag ? (To dispose of the Delta’s directorial corpses).

Dunedin is watching and waiting.

[ends]

—

Posted by Elizabeth Kerr

This post is published in the public interest.

*Image: pinterest.com – ‘It’s in the Bag’ with Teneke Stephenson (formerly Bouchier) and Selwyn Toogood, tweaked by whatifdunedin [Kyle via Deloitte]

Delta : Latest Outage #Tainui #DegradedUnsafeNetwork

Otago Daily Times Published on Nov 16, 2016

“Standard safety protection operated immediately ensuring that the downed line was de-energised and electrically safe.” –Delta [PR]

### ODT Online Wed, 16 Nov 2016
Power restored in Tainui
By Vaughan Elder
Power has been restored to 430 customers in the Dunedin suburb of Tainui after it was cut this morning when a line came down. The outage happened at 9.10am after a power line fell on Cavell St near the intersection with Magdala St. […] Despite the line leaving scorch marks on the ground, the Delta spokesman said the line coming down presented “no danger to the public”.
Read more

****

█ Alert To Future Posts:
Delta is riddled by massive HEALTH AND SAFETY problems, perpetuated by a Sick and Dysfunctional executive culture (CEO, and ELT silos), resulting in a preyed-upon, demoralised, risktaking ‘make-do’ workforce.

The risks to individual lines staff are Ginormous. ‘Fatal conditions’ abound. Corporate care ensuring the physical and mental wellbeing and safety of staff is almost completely lacking. The risks to life are exponentially Unacceptable.

What’s needed ?
Independent senior industry experts (plural) prepared to Scrutinise Delta and Talk Out Loud : to see to immediate replacement of the inexperienced ‘make-worse’ CEO Grady Cameron – and to swiftly empower thoroughly coordinated, highly risk averse and analytical professional work teams to prioritise and carry out network upgrades and replacements.

But what about the money….. there is none. The cost of bringing the electricity network up to compliance standard is Astronomical. A different model of ownership and operation is required –potentially, an opportunity, the Community could assume ownership of the network. Hopefully, ODT can explore the options by looking at other successful models – and which have No Ability to ‘strip and burn’ the asset.

Various sources inside Delta tell us the company has brought in an ex staffer as ‘Consultant’. They are paying him $5000 a day…. to skim the surface, was it. But really, Delta is setting up a new company ‘within Delta’ to replace the dangerous poles (at a Very Slow rate) – the work will be contracted out to the usual culprits. More soon.

Related? The NZ Companies Office notes:
‘DELTA NETWORKS LIMITED – Approved Name Reservation’

****

Wed, 16 Nov 2016
Valpy Rosebowl winner
Otago Daily Times reporter Vaughan Elder has been named the newspaper’s 2016 Valpy Rosebowl Trophy winner. […] The award, for editorial excellence, is presented annually on the anniversary of the November 15, 1861, publication of the first issue of the ODT, New Zealand’s oldest daily newspaper.
Read more

****

Certainly, Vaughan Elder and the other journalists at ODT are holding their end up with timely coverage of the unfolding Delta ‘dangerous poles’ situation. However, the poles – although highly visible and a useful tool to raise Community awareness – are actually the least of it in terms of danger to Delta lines crew and the Community.

Lots to come out in the next days from sources inside and outside Delta.

All the while the Dunedin City Councillors sit on their hands, without a peep about COST TO RATEPAYERS AND RESIDENTS.

Remember, through the glass darkly, Mayor Cull made a song and dance before the local body elections about having reduced the council’s debt by some small millions; crowing his success with “straightening out council companies”.

This was ‘reinforced’ by [fleeing] Richard Thomson ‘at the end of his last meeting as chairman of the council’s finance committee’, informing us the council’s debt at the end of June had dropped to $217.25 million. ‘This was $30.6 million below budget and well below its target of $230 million by 2021.’

Ahem, ticking the third box of authoritative commentary, on 7 October Graham Crombie rolled up to tell us DCHL’s profit was up 57% and ‘debt across the companies and the council has reduced by $16.8 million to $581 million’. Oh dear, All progress lost and squandered now as Delta borrows $30M to replace the odd pole here and there, with god knows what other spending to be made in the vain hope of compliance.

Dear Daaave : Win some, Lose squillions more.

Otago Daily Times Published on Sep 2, 2016
Dunedin mayoral candidate Dave Cull
The clock is ticking as Dunedin mayoral candidate Dave Cull gets 30 seconds to explain why he should be mayor.

—

Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: odt.co.nz – Vaughan Elder, tweaked by whatifdunedin

DCHL —Which ‘Infinity’ were Councillors sold on #funnybusiness

ODT 13.10.16 (page 12)

—

The published reply has no direct bearing on Russell Garbutt’s enquiry.

● INFINITY YALDHURST LIMITED (5886102)
Incorporation Date: 09 Feb 2016
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/5886102

● INFINITY INVESTMENT GROUP HOLDINGS LIMITED (1004601)
Incorporation Date: 06 Dec 1999
Address for service:
Jackson Valentine Limited, Level 3, 258 Stuart Street, Dunedin 9016
http://www.companies.govt.nz/co/1004601

● INFINITY FINANCE AND MORTGAGE LIMITED (5920307)
Incorporation Date: 17 Mar 2016
Address for service:
Infinity Finance and Mortgage Limited, 12a Fovant Street, Russley, Christchurch 8042
http://www.companies.govt.nz/co/5920307

—

Related Post and Comments:
22.9.16 DCC : Delta deal 1 Aug 2016 Council meeting (non-public) #LGOIMA

█ For more, enter the term *delta*, *dchl*, *infinity*, *noble* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

COMPLETE Dis-satisfaction with DCC, DCHL, DVML, DVL, Delta….

Fake it til you make it, and hey, don’t lift the marigolds.

Sorry Daaave, looks like a D for your council’s governance. —Actually, for the avoidance of euphemism, make that D- and lower for DIRE Performance, accompanying Drivel, and Diabolical treatment of Residents and Ratepayers in the aftermath of emergency situations.

Listening to Yes People and your dwindling voter base isn’t your best hope to resolve ongoing multimillion-dollar losses being sustained by a couple of the council-owned companies, to the point where the holding company led by chairman Crombie, fronts with a “qualified audit” only on presentation of its annual report(?) to Council.

[In July 2015 Graham Crombie was appointed to the Commerce Commission as an Associate Commissioner for a five year term.]

Damages to employment, liveability and opportunity in a No-growth city keep stacking.

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“It is also yet another example of good public service jobs being lost from our smaller towns and cities.” –PSA spokeswoman

### ODT Online Thu, 13 Oct 2016
ACC jobs to go in Dunedin
By Vaughan Elder
After consulting with staff since June, the decision had been made to relocate all the roles over the next 12 to 18 months to the larger Christchurch office and have “one centre for consistent customer and rehabilitation services across the Southern region”.
Read more

****

Asked about people who continued to be negative about the city, he said: “Negativity is an attitude, it’s not a fact.”

### ODT Online Thu, 13 Oct 2016
Survey ‘shows Dunedin on right track’
By Vaughan Elder
A survey showing Dunedin residents feel increasingly positive about their city shows the city is on the “right track”, Mayor Dave Cull says. […] the annual survey was not all good news. Last year’s June flood was picked as a reason for increasing dissatisfaction with the city’s stormwater system [down 13 points to 43%]. Satisfaction rates also fell when it came to public toilets, the suitability of the city’s roads for cycling and the availability of parks in the central city.
Read more

[Chief executive Sue Bidrose] said some of the areas where there had been negative results this year and in past surveys correlated to negative media coverage in the Otago Daily Times.

*1577 survey responses from 5400 residents randomly selected from the electoral roll,

The Talking Head (without helmet, unprepared)

█ Dunedin City Council (media release)
Residents’ Opinion Survey released 12 Oct 2016. Link

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Posted by Elizabeth Kerr

*Image: cdn.guardian.ng – marigold, tweaked by whatifdunedin

Has DCC Delta stupidly bought into another Pegasus . . . . #notquite

Updated post
Wed, 28 Sep 2016 at 12:51 a.m.

Why has our Dunedin City Council decided to have anything to do with Infinity via council owned company Delta ? Which Infinity ? Infinity Investment Group Holdings Ltd ? Infinity Yaldhurst Ltd ? And who is Infinity Finance and Mortgage Ltd, of a bedroom at 12A Fovant St, Russley ? Is ‘Infinity’ a front for Gordon Stewart’s Noble Investments Ltd ? We delve…. meanwhile, here’s Infinity’s slow-troubled-road Pegasus.

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Pegasus was a dream town, invented by a former infomercial salesman who believed wholeheartedly in his vision. Ten years on, it looks remarkably different. –The Press

Bob Robertson with scale model of Pegasus [Martin Hunter/Fairfax NZ]

Robertson, chief executive for Infinity Investment Group [teara.govt.nz]

Pegasus golf and sports club spans nearly 80ha [Stuff.co.nz]

Pegasus Town – not the vision…. [pegasustown.co.nz]

300 Chinese model makers crafted the 1:100 scale model [nzgeo.com]

### Stuff.co.nz Last updated 05:00, June 4 2016
Life in Pegasus, the dream town yet to fly
By Charlie Mitchell – The Press
It’s rare to meet the inventor of a town. Even more so to shake his hand. It’s an odd sensation many experienced on a single day in 2006, when a former infomercial salesman clutched a microphone, took to the stage, and sold $122 million worth of property before the sun went down. Bob Robertson had developed property before, but nothing like this. He was dreaming of a town called Pegasus, a master-planned community in a swampy, coastal corner of North Canterbury. It would be the first master-planned town in New Zealand. It would appear fully-formed, as if dropped from the sky.

Planned entertainment and retail precinct [Infinity]

Artist’s impression of the planned town centre [Stuff.co.nz]

There was something Utopian about the idea. At the time, Robertson said: “For Pegasus, I’m acutely keen to create what I would like to consider would be as close as possible to an ideal town.” He claimed to be the ultimate test-subject; he planned to create the town he’d want to live in, one built for “the traditional Kiwi family”.

Ten years later, Pegasus has come to life. It’s not quite what anyone envisaged; certainly not what Robertson dreamed. Pegasus, ultimately, was built somewhere between the vision promised in Robertson’s model and a messy reality, blighted by earthquakes and a global financial crisis. The promised developments struggled to keep up with the schedule. What did arrive was promising – the golf course and the lake are almost unanimously praised. But more basic facilities, such as a supermarket, or even mail delivery, were conspicuously missing.

Pegasus housing [Stuff.co.nz] with render [teara.govt.nz]

By 2012, it was clear Pegasus would never become what was promised. Shortly afterwards, the developer defaulted on a $142 million payment and went into receivership. It was sold to Todd Property, owned by New Zealand’s wealthiest family. Pegasus no longer belonged to Robertson. The town’s new developers, Todd Property, are keenly aware of the promises made by its former owner. Since January 2013, about 30 people a month have steadily arrived to live in Pegasus. About 2500 people live in Pegasus, well short of the 7000 predicted by Robertson. When describing Todd’s vision for the town, the first word used is “realistic”. Another is “achievable.” A sharp turnaround from the rhetoric used by Robertson, who sold dreams, not property.
Read more

Other stories via Stuff:
22.8.16 Opinion: Pegasus – a ‘vibrant village’ where people know nature…
10.12.15 Posthumous award for Pegasus developer, Gough also honoured
● 11.6.15 Former Pegasus owner leaves $100 million debt
25.4.13 Todd family paid $66m for Pegasus – report
6.12.12 Todd family takes Pegasus Town reins
17.8.12 Pegasus town developer in receivership

█ Welcome to Pegasus Town | www.pegasus-town.co.nz

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Via LGOIMA response to Elizabeth Kerr:
Screenshot of Pegasus Town detail from Attachment B to the DCHL Report to Council (1 Aug 2016) — see Noble/Yaldhurst Village Update.
Highlighted by whatifdunedin, the last line is interesting.

[click to enlarge]

—

Related Posts and Comments:
26.9.16 Delta #EpicFail —Epic Fraud #14 : The Election and The End Game…
● 22.9.16 DCC : Delta deal 1 Aug 2016 Council meeting (non-public) #LGOIMA
18.9.16 Delta #EpicFail —Epic Fraud #13 : Councillors! How low can you Zhao ?
26.8.16 Delta #EpicFail —EpicFraud #12 : The Buyer Confirmed
24.8.16 Delta peripheral #EpicFail : Stonewood Homes —Boult…
8.8.16 Delta #EpicFail —Epic Fraud #11 : The Buyer
1.8.16 Delta #EpicFail —The End Game according to CD
31.7.16 Delta #EpicFail —Epic Fraud #10 : The Beginning of the End : Grady Cameron and his Steam Shovel

█ For more, enter the terms *delta*, *infinity*, *noble* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

Cracking the truth : June 2015 South Dunedin flood

OPINION received from Neil Johnstone
Sat, 10 Sep 2016 at 12:42 a.m.

Richard Stedman produces (below) a succinct review of the causes of, and failures after, the South Dunedin flood of June 2015. His frustrations appear to match those of Hilary Calvert that were published a few hours earlier. My reviews previously published on What if? Dunedin commencing back around February give more detail.

For your readers’ further consideration, Richard has highlighted the ‘200mm increase’ in flood level as a result of Portobello Road pumping station failures. The figure was derived by me, and appears in my review of the first DCC flood report. To my knowledge the only clear comparable DCC concessions have come from chief executive Sue Bidrose who admitted the figure publicly at the 20 June 2016 (yes, 2016) South Dunedin Action Group-organised public meeting, and subsequently.

The first DCC flood report (30 Nov 2015) is adamant that high groundwater was the cause of the flooding, and enough Councillors bought right into that excuse at the following Infrastructure Services Committee meeting. Just go back and view the video, if you’ve forgotten.

Dunedin City Council Published on Dec 7, 2015
Dunedin City Council – Council Meeting – November 30 2015
Discussion of the report starts at 1:09:52

The second (mudtank) DCC report of 26 April this year states: “Although Portobello Road’s performance did explain some of the length of time flooding was evident, much of the flooded area was below road level…” (para 31). No mention of increased depth of flooding there either, you will note.
[View report at Infrastructure Services Committee: Agenda & Reports 26 April (Part A, Item 5) pp 6-27.]

Neither DCC report mentions the additional depth of flooding caused by inaction at the Musselburgh pumping station.

History and ongoing design may rely on written commentaries. For the wellbeing of South Dunedin people, we must therefore continue to counter the misinformation contained in DCC reports, and in the more recent ORC (DCC-backed) South Dunedin “hazards” report. Even if ODT has switched off.

—

Related Posts at What if? Dunedin
8.3.16 [Review 1] Johnstone independent review of DCC report
19.5.16 [Review 2] Johnstone review of 2nd DCC report

Correspondence supplied
7.3.16 Letter, Chief Executive Sue Bidrose to Neil Johnstone
10.3.16 Response from Neil Johnstone to CE Bidrose

Sue Bidrose at ORC/DCC hazards presentation [radionz.co.nz]

****

OPINION received from Richard Stedman
Fri, 9 Sept 2016 at 8:24 p.m.

The ODT editorial department is peopled by closed minds, a number of whom subscribe to the climate change/rising sea level mantra and therefore manipulate their content to support their distorted view of the world. Mr Morris is captured by the former/present regime at city hall, a fate which befalls every reporter assigned to that round once they get their feet under the table.

Two weeks ago I prepared an opinion piece re the election and South Dunedin, outlining some of the issues as I see them in the hope that it might be published. I thought it was honestly held opinion, but it was rejected because it added “nothing new” to the debate, yet they run to Cull at every turn and run column after column of repetitive nonsense.

The following is my submission submitted on 24/8 and rejected the same day in this message: “Thanks for this submission, but we have had a “deluge” of flood letters and op eds from all sides so I don’t feel the need to highlight the issue again at the moment – certainly if there’s not anything new in it, as such”.

I have seen little evidence of the cited “deluge”.

The South Dunedin flood of June 2015 may be a tipping point during next month’s local body election. Many voters will look at the burgeoning candidates list for the Dunedin City Council and ask “who will provide the cornerstone elements of responsibility, accountability and integrity?”

Residents and business owners in South Dunedin have been sorely tested in recent times through the failure of the DCC to maintain its infrastructure. Among those adversely affected were elderly residents at Radius Fulton Home, including a number of dementia patients, the most vulnerable in our community, who were subjected to floodwaters containing sewage and transferred from the safety of their home in a crisis beyond acceptance. Some were accommodated as far away as Balclutha and Oamaru and three months passed before the facility was re-opened.

Following the flood, obfuscation clouded the failures that led to the inundation of homes and businesses and the investigation and report into the affair was 12 months in gestation. Officials and councillors, captured by the twin mantras of climate change and rising sea level, avoided any suggestion of culpability to limit the likelihood of litigation, and offered no solace that might have been construed as admission of liability.

The mayor and others were quick to blame rising sea level causing increased groundwater, combined with an “extreme weather event”, the result of climate change, and went so far as suggesting that a planned retreat from South Dunedin may be necessary in the future. The rainfall was described as a one-in-100-year event then gradually downgraded, but none of these pretexts are realistic. Questions arise over who is responsible for what, and how serious are the threats of rising sea level, more frequent adverse weather caused by climate change, and the “sinking of South Dunedin”, not to mention “retreat”.

Dunedin and environs have been subjected to much larger weather events in the past. Flooding of the entire city is well recorded and in particular photographs of the 1923 flood depict rowing in floodwaters in the city as well as inundation in South Dunedin. During a storm in 1898 large tracts of St Clair Esplanade were destroyed by the sea which damaged many houses, leaving some partly suspended. More recently, the storms of 1968 were greater than last year’s, delivering 10% more rainfall. In 1968 there were 90 properties invaded by floodwater, whereas last year some 1200 properties were flooded and many contaminated with effluent. Clearly last year’s event was exceptional only for the damage created and lives disrupted.

At a public meeting in South Dunedin on June 20, more than 12 months after the event, those affected had an opportunity to hear an explanation in the hope that someone might take responsibility for the extent of the damage. Despite a good representation of councillors there was no empathy and no likelihood of accountability. What the meeting heard was a long explanation of how the three-waters system works, or doesn’t work, as the case may be, and of failure at the pumping station from chief executive, Dr Sue Bidrose and other staff. The question is “when did the city’s councillors abdicate?”

South Dunedin June 2015 [radionz.co.nz]

It can be argued that the damage and distress was the result of neglect, but the DCC says problems at the pumping station added only 200mm to the flooding which would have occurred anyway. Which 200mm was it? Maybe the first 200mm flowed across the ground, reached blocked drains then deepened throughout the area, or perhaps the last 200mm increased the depth and entered homes and business premises carrying undesirable flotsam. Without the extra 200mm would the water have stopped at the thresholds rather than flowing inside?

What of the rising sea level threat? Is it as urgent and as devastating as the commissioner for the environment, some DCC councillors and the Green Party say? The Greens proffer that the Government should help to pay for the reconfiguration of South Dunedin. Why? There has been no disaster on the scale of the Canterbury earthquakes and there is no immediate danger condemning South Dunedin, for if sea level were to rise according to some projections, north Dunedin and other areas are also in jeopardy meaning protection on the coast is futile because the flat land would be inundated from the harbour.

Could it be that models of sea level rise around New Zealand are exaggerated and distorted by the multiplier effect have been grossly over stated? And do the $7 million apartment complex at the Esplanade to be completed next year and the DCC’s belated discussion on a South Dunedin hub indicate mixed messages on the subject?

There is no doubt that the infrastructure must be maintained to the highest level and upgrading implemented with haste. The seafront calls for a level-headed approach to protect the sandhills which shelter the city from the ocean. In the past a network of groynes captured the sand, maintaining a broad beach to dissipate the energy of the waves. The network succeeded for nearly 100 years, but without maintenance fell victim to the ocean, so is it time to reinstate a similar system and then plan carefully for the next 100 to 200 years?

Council says that infrastructure will require “tens of millions of dollars” we cannot afford, but plans to spend some $37 million on George Street and the Octagon, followed by development of the harbourside. These “tens of millions” surely must be re-allocated to South Dunedin for infrastructure, to build a second pumping station, and provide realistic coastal protection.

Dunedin needs new councillors who will make hard decisions, reduce spending on fripperies and attend to basics; people who are prepared to drill deep into reports and costings and who are not afraid to make unpalatable decisions when needed rather than govern with slogans and platitudes.

Declaration: Conrad Stedman is my nephew.

—

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

Truthful Letters : Stadium + DCC #toobadaboutmayoralreply

ODT 27.7.16 (page 12)

[click to enlarge]

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DEPLORABLE MULTIPLIERS [what more do we need ?]

The god awful millstone stadium is due to have its 5th birthday soon – ODT will be saturated, note bilge leaking into the Op-ed pages, already.

WE ONLY CARE ABOUT . . . .
THE UNMITIGATED UNPRINCIPLED FLOW OF RATEPAYER MONEY AT +$20MILLION PA to subsidise the Stadium, DVML/DVL, Professional Rugby and Grey Hair Events —meanwhile draining council owned company Aurora Energy of development capital sufficient to satisfy the regulator of lines companies, the Commerce Commission.

It is wrong. Criminal. (metaphorically!)

****

### dunedintv.co.nz Wed, 27 Jul 2016
Your word on local body elections
The Dunedin City Council is set to have some fresh blood in its midst with five current councillors confirming they won’t seek re-election. Many of those not standing have cited the large workload and increasing bureaucracy as a job deterrent. With that in mind our Word on the Street team asked the public whether they care about the upcoming local body elections.
Ch39 Link

Channel 39 Published on Jul 26, 2016

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Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

New Zealand ‘broccoli budget’ 2016/17

### NZ Herald Online 3:58 PM Thursday May 26, 2016
Liam Dann: This is the broccoli budget
OPINION This is the broccoli budget. It’s the one you have to eat before you get the treats. Bill English has got his surplus back and if we buy in to his vision of fiscal prudence we’ll have $6.7 billion in the tank by 2020.
That’s more than enough for John Key to dangle $3 billion in tax cuts in front of us before the election next year, although that does render the $6 billion figure a little redundant. The $700m surplus this year represents a huge swing from the $400m deficit which was forecast as recently as December. But economists will point out that is still margin of error stuff in a Budget spend of $77.4 billion. In some ways the extent of the turn around since December just proves that.
Read more

[thepoeticgardenfiles.wordpress.com]

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“This is a Budget that invests in a growing economy.” –Bill English

Thu, 26 May 2016
ODT: Health, education big Budget winners
Health, education and social services are the winners in a Budget which contains few surprises but also few contentious moves. Auckland housing also features prominently in the National-led Government’s eighth Budget, released this afternoon. There is no rescue package for first-home buyers but funding will help free up land for housing developments in Auckland and open up more social housing places for the most desperate families. […] In the next year, an extra $568 million will be spent on health – just short of the $600 million which is required to keep pace with population growth and other pressures on the health system.

█ ODT Budget Special

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www.treasury.govt.nz/budget/2016
Home page for Budget 2016 for the Government of New Zealand. Hon Bill English is Minister of Finance.

The Budget website at www.budget.govt.nz is optimised for mobile and tablet devices and provides access to the current Budget documents and interactive charts and features such as My Tax Dollars.

Parliament TV – 2016 Budget Day
Today (Thursday 26 May) after 2pm, the Minister of Finance Hon Bill English delivered the 2016 Budget to the House of Representatives. The Budget is an annual event that sets out the Government’s economic policies and plans for spending public money in the 2016-17 financial year. All Government spending must be scrutinised and approved by Parliament, and Parliament gives this approval by passing a special law, called an Appropriation Bill. The Budget is effectively the start of this ‘appropriation’ process. Link

█ Watch and listen to Budget Day 2016
You can watch the delivery of the Budget statement and the following debate on Parliament TV, by webcast or on-demand

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Posted by Elizabeth Kerr

Delta #EpicFail : L is for (Slow) Luggate Learner and T is for Turnip.

Received from Christchurch Driver [CD]
Wed, 4 May 2016 at 12:55 a.m.

Readers, I must admit defeat. I have I think, even if I say so myself, achieved some quite good lines in my quest to succinctly describe the various acts of stupidity committed by Delta at the Noble Subdivision. But recently, an associate (probably keen to cut me down to size !) sent a piece from Fairfax by Tim Hunter, now at the National Business Review, following the Auditor-General’s report in 2014. I saw immediately I had been bested by a better scribe : He memorably described the Delta management as having “commercial acuity about as sharp as a turnip” . That I could reach such cutting brevity !! Mysteriously, no threat of defamation was forthcoming to Mr Hunter….

And as the coast is clear, to honour Mr Hunter, Delta management shall henceforth be referred to as the Delta Turnips….

Your correspondent was intrigued to read of the Lazarus like re-emergence of Luggate Park as a premium lifestyle subdivision destination of choice with prices for sections between $325,000 – $495,000. (Note, no offers are entertained – these are fixed prices say developers Willowridge !) If this goes according to plan, there appears to be a profit even larger than the reported Delta loss of $5.9M* for the enterprising Mr Allan Dippie, the latest owner of the ex Delta land.

Now, your correspondent understands that Mr Dippie may not have as many university degrees as the Delta directors, or possibly not one at all. Mr Dippie does not breathe the same rarefied directorial air as the likes of Mr Stuart McLauchlan, Mr Denham Shale and other ….directors. However Mr Dippie does know his Central Otago subdivision market very well, and further knows that land development sometimes has to be viewed long term, the way a Japanese banker views the deadbeat property loans they made in Tokyo in the 1980s that are still underwater. That is, if you still own the asset you haven’t lost anything, and time will do its work and lift values. The critical thing is to have the courage of your initial convictions, and stay the course. Yes, yes, I know, the Japanese banks are still waiting, but no waiting is required, it seems, in Luggate.

Readers, take a good long draught of Choysa : Delta had TWO choices in 2012 : Sell the land for basically nothing ($1M vs a total Delta investment of around $7M), or…wait until the market improves. Of course, Delta chose to destroy ratepayers’ funds value in a desperate attempt to show ratepayers they had “moved on” and it was all a bad dream –

If Delta had an ounce of the foresight of someone like Mr Dippie, who has been both very successful, and also very patient at times, they would have held the land. A few facts about the land – the 42 entry level sections to be sold in the next stage will be worth around $6M, added to the $9.17M of the 22 premium sections, gives a total of $16.2M. There possibly could be further sections that would increase the value, but the glass is dark on this detail.

After allowing for subdivision infrastructure and selling costs, the land that Delta sold for $1M three years ago would now realise them $9-10M. Yes readers, Delta could have made a genuine, non Aurora subsidised profit and got the civil work they wanted, at good prices. They could have even paid Mr Boult’s bank debt off, paid off the $1.935M bank loan, some interest to DCC treasury and the entire $5.5M advance and still have a bit left over.

What possessed them to act like lemmings jumping off a financial cliff ? Two words … Denham Shale. Mr Shale was the alleged heavy hitter brought in to clean up the Dunedin City Holdings Ltd (DCHL) and Delta mess after the Larsen report in 2011, along with Mr Bill Baylis and others. He knew even less about property development than the likes of Mr Ray Polson. L for Learner developers indeed. As Mr Hunter exclaimed, turnip acuity was all around. Mr Shale was of the school that says when you have a mess, a clean out, not a clean up is needed…. A clean up keeps the items that have a chance of retaining value. Mr Shale told Mr Polson to write down the value of Luggate and get shot of it in April 2012. Mr Polson, being the invertebrate mild mannered accountant he is, then parroted that line to the Delta board a month later. The rest is well known. A bath. This is all in the Auditor-General’s report, in Section 6, for readers that doubt your correspondent.

Mr Denham Shale’s legacy to the City of Dunedin is a $8-9M loss due to turnip advice (aka profoundly stupid advice) to sell land for a fraction of its cost and value. Any developer or person involved in land in Central Otago for any length of time has seen huge fluctuations in value, generally in a 7-year cycle… Your correspondent is one such person, who lays no claim to visions of the future, but who has had to hang tough for extended periods in Central Otago on various deals.

All Delta had to do was talk nicely to DCC Treasury, to explain the $5.5M advance they gave Delta was a couple more years away – they had already waited for five years, who’s counting anyway ? Make an offer to Mr Boult of his 50% share of slightly more than the $1M they received (he had already asked Delta to buy him out having seen the Delta trough was empty), and start paying interest on the $1.935M bank loan. Not difficult. But required some vertebrates.

Mr McLauchlan, Mr Shale, Mr Cameron and the other directors, yes, they all displayed “commercial acuity about as sharp as a turnip”. –How I love that phrase ! This band of Delta Directors could not grasp what to Mr Dippie is as natural as breathing – that they stopped making land a long time ago, around the time of the flood and Noah’s Ark. That people want to live in Central Otago, so therefore the land price will rise, maybe not when you think, but given time rise it will. This, Mr Shale, Mr McLauchlan, and (2014 Young Director of the year) Mr Cameron is called, SUPPLY & DEMAND. Your elementary lack of foresight and myopia has cost the City of Dunedin millions. L is for Learner, T is for Turnip. Which one applies, readers ?

[ends]

Election Year : This post is offered in the public interest. -Eds

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Related Post and Comments:
30.4.16 Luggate à la Dunedin’s lad, Dippie

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

*The ‘Auditor-General’s overview’ states (page 5):
“Delta lost about $5.9 million on the Luggate investment and has projected a loss of about $2.8 million for Jacks Point. These losses are before tax, and Delta expects that they might yet be off set by tax credits of about $1.5 million for Luggate and about $0.8 million for Jacks Point. If so, the overall loss would be about $6.4 million.”

█ For more, enter the terms *delta*, *luggate*, *jacks point*, *auditor-general* or *noble* in the search box at right.

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Posted by Elizabeth Kerr

Image: pinterest.com – turnip

Luggate à la Dunedin’s lad, Dippie

The jovial CD was driving towards Dunedin this morning…. gave me a wake-up call to foreshadow a new post pending for that old spectre : “L” for Luggate, or learner plates for Delta Directors and Mr Cameron.

Yessss. While the Noble subdivision at Yaldhurst heads for the rocks, it appears DCC Ratepayers have been doubly triply shafted at Luggate. Anyway, won’t steal CD’s thunder. He is in the offing!

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Sat, 30 Apr 2016
ODT: Former Delta sections in Luggate hot property
Part of the big Luggate Park subdivision that lost Dunedin City Council-owned infrastructure company Delta $5.9million before tax in 2012 is being advertised for sale. The 22 sections in “Luggate Heights”, near Wanaka, range in price from $325,000 to $495,000, providing the owner, Willowridge Developments Ltd, with a potential gross return of $9,170,000. Similarly-sized sections at lower altitudes nearby were selling for as little as $128,000 five or six years ago.

Willowridge, owned by Allan Dippie, bought the 50ha, 160-section Luggate Park development last year from Auckland development company Dentils Ltd, which was unsuccessful in attempts to sell the sections. Dentils had bought the development from Delta and Queenstown property developer Jim Boult.

█ Willowridge Developments Ltd http://www.willowridge.co.nz/
█ LUGGATE PARK http://luggatepark.co.nz/

Auditor-General’s overview
Inquiry into property investments by Delta Utility Services Limited at Luggate and Jacks Point. Access the Auditor-general’s full report here:
http://www.oag.govt.nz/2014/delta

█ For more, enter the terms *delta*, *luggate*, *jacks point* and *auditor-general* in the search box at right.

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Posted by Elizabeth Kerr

*Image: roadcodepractice.co.nz – ‘L-plate’

DCHL: Annual Result for the year ended 30 June 2015

### dunedintv.co.nz Thu, 24 Sep 2015
DCHL in strong position
More than $15m has been paid out to the city council and its subsidiaries in the last financial year.
Ch39 Link

39 Dunedin News Published on Sep 24, 2015
DCHL in strong position

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Dunedin City Council – Media release
Annual Result for the year ended 30 June 2015

This item was published on 24 Sep 2015

The Board of Dunedin City Holdings Limited (DCHL) is pleased to report the financial result for the DCHL group for the year ending 30 June 2015.

Highlights
● Profit after tax and subvention payments for the group was $12.9m.
● We have distributed to the Dunedin City Council (DCC) and its subsidiaries outside the DCHL group a total of $15.7m consisting of $4.5m in dividends, $5.9m in interest and $5.2m net in subvention payments.
● Cash from operations continues to remain strong at $32.3m. This was after paying the budgeted subvention payments of $7.9m to Dunedin Venues Limited.
● Total borrowings across the group have reduced by $23m to $598m.
● The financial result for the year reflects the hard work and focus of the staff and directors of the DCHL group of companies, which is much appreciated.

Profit after tax for the group was $12.9m for the year consistent with last year’s result of $12.5m. The result for the year is a continuation of the solid returns for the group.

Aurora Energy Limited invested significantly in its network during the year, resulting in an overall increase of $23m in its asset base. This is a reflection of work being undertaken by the company in renewal investment on the Dunedin network and investment in the Central Otago network driven by growing consumer demand. Overall capital investment in the network over the next 10 years is expected to be $372m.

Now that Delta Utility Services Limited has fully exited its water and civil construction operations, it was able to have a full year concentrating on its core services. This saw a marked increase in demand and reflected positively on its results. Overall the company returned a surplus after tax of $4.7m.

City Forests Limited continues to consolidate its financial position through reduction in borrowings, an increase in its forestry investment and maintenance of its dividend distribution. The company had a net surplus of $7m after tax.

Taieri Gorge Railway Limited has turned around from a loss last year to record a surplus after tax of $173,000 in the year to 30 June 2015. The positive result is a reflection of an increase in passenger revenue and continued focus on costs within the business.

Dunedin International Airport Limited achieved an operating surplus of $1.7m for the year, consistent with its result of $1.8m for the previous financial year. The company was able to increase its dividend to DCHL in the year from $565,000 in 2013/14 to $640,000 in 2015/16.

A pleasing aspect of the financial performance is the continued drop in borrowings within the group’s balance sheet. Borrowings have decreased from $621 million at June 2014 to $598 million at June 2015. Most of this decrease has come from improved cashflow management within the group assisted by significantly reducing the interest costs for borrowing entities. All of the subsidiaries, other than Aurora Energy Limited, were able to reduce their debt levels during the year. An increase in debt levels by Aurora Energy Limited is expected given their capital investment programme.

Cash from operations continues to remain strong at $33m. The ability of the group to maintain strong operational cash flows is imperative to ensure that it can meet its dividends and capital investment requirements.

DCHL has signalled to the DCC, via its annual Statement of Intent, that its distributions to the Council will decrease from $15.7m to $11.2m over the next three years. With the planned capital investment being undertaken by Aurora, it is prudent that Aurora reduces dividend distributions to DCHL over the next three years to ensure the funds are invested into capital and to maintain an appropriate equity to total assets ratio. This naturally impacts in the distribution that DCHL can make to the Council.

Overall the upcoming 12 months for the group looks favourable. The capital investment by Aurora will provide financial stability for the company, Delta continues to grow its core contracts while maintaining its current contract base and improvements in the tourism market will continue to assist Taieri Gorge Railway. A favourable interest rate environment will assist in the cost of debt for Dunedin City Treasury Limited, and City Forests continues to operate well in the fluctuating forestry environment.

Contact DCHL Chair Graham Crombie on 0274 363 882
DCC Link

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Related Post and Comments:
1.3.15 DCC: DCHL/DVL/DVML limited half year result | Term borrowings $586.5M
30.9.14 DCHL financial result

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Posted by Elizabeth Kerr

Jane Kelsey —The FIRE Economy: New Zealand’s Reckoning #book

The name of Kelsey’s book refers to an acronym for economies primarily based around “finance, insurance and real estate”.

### ODT Online Thu, 10 Sep 2015
Foretelling end of neoliberalism
By Carla Green
Legal scholar Jane Kelsey has described the “morbid symptoms” of neoliberalism’s impending downfall. The University of Auckland law professor was speaking during the presentation of her new book, The Fire Economy, in Dunedin this week.
Read more

Image via Idealog.co.nz

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Bridget Williams Books (promotion + sales)

The FIRE Economy: New Zealand’s Reckoning
Jane Kelsey

The FIRE economy – built on finance, insurance and real estate – is now the world’s principal source of wealth creation. Its rise has transformed our political, economic and social landscapes, supported by a neoliberal regime that celebrates markets, profit and risk. From rising inequality and ballooning household debt to a global financial crisis and fiscal austerity, the neoliberal ‘orthodoxy’ has brought instability and empowered the few. Yet it remains remarkably resilient, even resurgent, in New Zealand and abroad.
In 1995 Jane Kelsey set out a groundbreaking account of the neoliberal revolution in The New Zealand Experiment. Now she marshals an exceptional range of evidence to show how this transfer of wealth and power has been systematically embedded over three decades.
Today organisations and commentators once at the vanguard of neoliberal reform, including the IMF and Financial Times journalist Martin Wolf, are warning the current model is unsustainable. A post-neoliberal era beckons. In The FIRE Economy Kelsey identifies the risks posed by FIRE and the barriers embedded neoliberalism presents to a progressive, post-neoliberal transformation – and urges us to act. This is a book New Zealand cannot afford to ignore.
BWB Link + Book Preview

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█ Videos at YouTube (published by Scoop):

Jane Kelsey “The Fire Economy” Book Talk To The Fabians 5 August 2015 (pt 1)
Jane Kelsey “The Fire Economy” Book Talk To The Fabians 5 August 2015 (pt 2)
Jane Kelsey “The Fire Economy” Book Talk To The Fabians 5 August 2015 (pt 3)

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[via Scoop.co.nz]

Fri, 17 Jul 2015, 4:30 pm
The FIRE Economy: New Zealand’s Reckoning – By Jane Kelsey
Opinion: Professor Jane Kelsey
Introduction – An Extract

The global economy imploded in 2008 and confirmed a stark reality. Entire nations and billions of people are captives of an unstable and amoral economic system powered by finance, insurance and real estate – FIRE. New Zealand included.
‘The FIRE economy’ is a metaphor for the fundamental shift in global capitalism since the 1970s. Finance has replaced industry as the driver of wealth creation in affluent countries – a transformation known as financialisation. Neoliberal ideology, rules and institutions acted first as the midwife and then as the guardian of this new economic order.
The Global Financial Crisis (GFC) showed the world’s richest countries, notably the US and the nations of Europe, that the globally integrated economy they had created, and from which they have prospered, could also bring them to their knees. Faith in the neoliberal ‘orthodoxy’ that shaped and sustained them seemed shattered. The fallout was fast and furious, and quickly spread to many other parts of the world.
A cursory look might suggest that little has really changed. Neoliberalism remains deeply embedded in most countries. The finance industry is resurgent and those who profit from it are unrepentant. Conservative parties with pro-market and pro-austerity mandates have been elected to govern some of the countries hardest hit.
Appearances are, however, deceptive. Confidence in the FIRE economy has faltered since the GFC and the hegemony of the neoliberal model is in decline. Core tenets of neoliberal ideology are being repudiated, even in institutions like the International Monetary Fund (IMF). Social inequality and poverty in and between countries are now recognised as symptoms of a sick system. Popular unrest in Europe has intensified, and new political parties from neo-Nazi fascists to the socialist left have gained ground. There are credible predictions of further crises.
The United Nations Conference for Trade and Development (UNCTAD) warned in its flagship Trade and Development report for 2014, six years after the GFC erupted, that the ‘world economy has not yet escaped the growth doldrums in which it has been marooned for the past four years, and there is a growing danger that this state of affairs is becoming accepted as the “new normal”’. That ‘new normal’ is not sustainable.
The world is entering a period of transformation equivalent to the epochal shift to Keynesian interventionism from the 1930s and the neoliberal revolution from the late 1970s. We are in the interregnum. The old orthodoxy is unstable and fragile; a new one has yet to be born. It remains to be seen how this plays out, how much resistance it will encounter, and whether alternative approaches can really break through the barriers designed to protect neoliberalism and the FIRE economy from just such a transformation.

Kiwi complacency
While the GFC has plunged rich countries like the US and England and later Spain and Greece into turmoil, New Zealand seems to be basking in the belief that it has survived the crisis pretty much unscathed. The standard Kiwi narrative treats it as a northern hemisphere affair, triggered by greedy American bankers and profligate European governments. The story goes something like this.
In today’s globalised world there was bound to be some collateral damage from other countries’ post-crisis recessions, but our financial system was shown to be basically sound (mainly because the Australian banks that own ours are sound). Governments on both sides of the Tasman responded promptly and effectively. Temporary interventions provided fiscal stimulus and bank guarantees steadied the ship, staving off a more serious recession. Stability was restored. Each country then resumed business as usual, regardless of their governments’ political hue. Helped by exports to China, future prospects looked positive, even rosy. Exuberant commentators went so far as to hail New Zealand as the ‘rock star’ economy of 2014. The strong centre-right vote at the 2014 election suggested confidence in the status quo or, at least, that the belief in TINA – there is no alternative – still prevails.
Before the 2008 election, as the GFC began to erupt, business journalist Bob Edlin observed how the country’s leaders seemed ‘curiously phlegmatic about global financial upheaval and its economic implications’. Their offerings ‘amounted to little more than tweaks of programmes that have brought us to where we are – a standstill’. No one was ‘peddling a cyclone-shelter or rebuilding programme’. Nothing has changed since then.

Couldn’t happen here?
This complacency is deeply disturbing. Neoliberalism has not served most New Zealanders well. Nor, in other than a hedonistic sense, has financialisation. Structural poverty and deep inequalities of wealth and income have transformed the social landscape. We have a shallow economy that depends on FIRE, farming, post-earthquake reconstruction and immigration. Periods of sustained economic growth in the 2000s have been fuelled by cheap credit. As a consequence, households, farmers and the country sit on a growing mountain of debt. Trading in property has become the main source of easy wealth, creating repeated incipient property bubbles. We have most of the preconditions that have been identified as triggers for a crisis.
A former Reserve Bank of Australia governor, Ian Macfarlane, is under no illusion there will be further crises. In 2008 he pointed to at least eight financial crises that impacted on Australia – and hence New Zealand – in the three decades before the GFC. Five were banking crises, and three involved excessive and risky lending in the property sector. Some affected New Zealand much more severely than the GFC. However, it was the depth and contagion of the latest crisis that Macfarlane says made it the most significant internationally and invalidated the model of the deregulated financial system.
New Zealand is much more at risk than Australia because successive Labour and National governments have located this country at the pure end of the neoliberal spectrum. For years it was known as the Wild West of financial markets. Adjustments during the 2000s were still premised on light-handed risk-tolerant regulation. Even since the GFC, governments and their advisers have continued to position New Zealand as an outlier, ignoring doubts in other countries and international institutions over the wisdom of letting financial markets rule.
Without some fundamental changes, New Zealand risks sleepwalking into a social, economic and political catastrophe. No one knows how or when that might happen. The tipping point could be another massive offshore crisis. Or it could be self-generated, as it was in Iceland and Ireland, if we fail to heed the warning signs. There is much to learn from Iceland’s successful post-crisis strategy of intervention, redistribution and capital controls, and from the tragedy of austerity economics in Greece, Spain and Ireland.

Time to act
Waiting for Armageddon is hardly a progressive strategy. It makes much more sense for New Zealanders to confront the country’s challenges now and begin to shape a socially progressive alternative than to battle over models in the midst of a crisis. While it is true New Zealand’s fate will inevitably be caught up in the unfolding of international events, Kiwis can influence how those global dynamics shape our future.
Read more

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Posted by Elizabeth Kerr

DCC financial position | DCC reply: “$20M cash on hand” #LGOIMA

### dunedintv.co.nz May 5, 2015 – 12:27pm
DCC’s financial position better than expected
The Dunedin City Council is finishing the financial year on a high, with an operating surplus of almost $8m. Its finance committee has just analysed the latest accounts, which show the council’s in a better position than expected. It’s received more money through its invested Waipori Fund, and saved on asset maintenance. The council’s got less debt to pay than what was initially budgeted for, and has deferred some work. But it’s received less than expected from the New Zealand Transport Agency for roading projects, and it’s lost some money on the sale of a Dukes Road property. The financial year ends in June.
Ch39 Link

As tabled at the DCC Finance Committee meeting on 4 May 2015:

█ Report – FC – 04/05/2015 (PDF, 1.2 MB)
Financial Result – Nine Months to 31 March 2015

█ Report – FC – 04/05/2015 (PDF, 1.2 MB)
Financial Result – Eight Months to 28 February 2015

****

WHERE DID DCC’S $20M “CASH ON HAND” DEMATERIALISE TO ?????

From: Elizabeth Kerr
Sent: Tuesday, 23 September 2014 11:13 p.m.
To: Sandy Graham [DCC Group Manager Corporate Services]
Subject: LGOIMA request

Dear Sandy

Re: Cull warns debt still hurdle for council (ODT 15.9.14)
http://www.odt.co.nz/news/dunedin/315949/cull-warns-debt-still-hurdle-council

Within the news item it says:

“The forecast had included about $22 million in “cash on hand”, but, since Mr McKenzie’s arrival, the decision had been made to slash the amount to about $2 million, he said.

“The cash was instead used to pay for capital projects, avoiding the expected need to borrow for the work, which reduced the council’s need to borrow by $20 million, he said.”

6.5.15 This paragraph goes unexplained in Ms Graham’s reply below;
a further clarification has been sought on WHICH CAPITAL PROJECTS

I would like the DCC to precisely itemise the way(s) in which the city council has spent this $20 million of “cash on hand”, to include the capital projects by name or other reference; the name(s) of the relevant council department(s) and or committee(s) that incurred this expenditure; the dates of expenditure; the spending delegations attributable to which, by name, formal signatories on account; and any other information in legible form that would assist the city council to meet my request in a forthright, full and transparent manner.

I look forward to reply.

Thanks, kind regards

Elizabeth Kerr

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* My LGOIMA request was made on 23 September 2014.
** Dunedin City Council was legally required to reply within 20 working days.
*** Dunedin City Council finally replied on 29 April 2015.

—————————————

From: Sandy Graham
Sent: ‎Wednesday‎, ‎29‎ ‎April‎ ‎2015 ‎1‎:‎36‎ ‎p.m.
To: Elizabeth Kerr
Subject: RE: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear EJK

I do appear to have sent this on Friday. I’m resending. Can you confirm receipt?

Regards
Sandy

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From: Sandy Graham
Sent: Friday, 24 April 2015 1:40 p.m.
To: Elizabeth Kerr
Cc: Carolyn Allan; Grant McKenzie
Subject: RE: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear Elizabeth

We have considered your questions and now provide the following response which we hope finally answers your enquiry. Apologies for the delay in providing this clarification.

First I want to background a couple of things to give context to both the question and our response. In our budget (the Annual Plan), the Council ensures that there is enough money to meet its financial obligations. This means that the Council has budgeted money in order to pay for a liability if and when it falls due over the course of the financial year.

While the budget provides for the necessary money to meet the various financial obligations that fall due over the course of the financial year, it is not financial best practice to have large sums of money sitting in the bank at the same time as the Council has debt. This is because the cost of borrowing is generally at a higher rate than the return on money invested in the bank.

With that background I want to deal with the specific situation referenced in the ODT on 15 September 2014 which forms the basis of your enquiry. For clarification, the article in the ODT on 15 September 2014 referred to a decision to “slash” the amount of cash on hand from $22 million to $2 million. To clarify, the $22 million was a budgeted amount of cash based on the Annual Plan for 2014/15. It was never physically in the bank – it was simply a budgeted figure.

The reference to “slash the amount” to about $2 million simply means that the Council (which had intended to borrow this money following the completion of certain capital expenditure projects) did not borrow it. It wasn’t spent on anything – the debt wasn’t raised. If it did borrow the money, then the Council would’ve had the money sitting in the bank. As outlined above, the current practice is to have a minimal amount of money in the bank but access to money if and when required.

The Council is currently consulting on a draft Financial Strategy which formalises this approach and incorporates it into the budget from 1 July 2015 onwards. I have attached a copy of the draft Financial Strategy for your information.

Regards
Sandy

█ Attachment: Finance-Strategy

—————————————

From: Elizabeth Kerr
Sent: Friday, 24 April 2015 1:56 a.m.
To: Sandy Graham
Cc: Carolyn Allan
Subject: Re: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear Sandy

Please can you have the information requested since 23 September 2014 to me within 5 working days. Appreciated.

Regards, Elizabeth

Sent from Windows Mail

—————————————

From: Elizabeth Kerr
Sent: Thursday, 9 April 2015 11:49 a.m.
To: Sandy Graham
Cc: Carolyn Allan; Elizabeth Kerr
Subject: Re:RE: LGOIMA request [DCC expenditure of $20M cash on hand]

Dear Sandy and Carolyn

The draft LTP has recently been signed off by the Council and is now available for public consultation.

Further to your last email, Sandy, if you can, please provide timeline for delivery of the information promised to me regarding DCC’s use of the $20M cash on hand, as referred to in the Otago Daily Times on 15 September 2014 (refer correspondence below).

I look forward to your update and following, prompt receipt of the information kindly requested last year.

Best regards, Elizabeth

█ The rest of the oh so tiresome email trail can be found at this thread:
3.11.14 DCC: What happened to $20 million cash on hand? #LGOIMA

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Posted by Elizabeth Kerr