DCC borrowing capacity

### ODT Online Tue, 30 Nov 2010
$250m rise in DCC borrowing capacity
By Stu Oldham and David Loughrey
The Dunedin City Council looks set to increase its capacity to borrow by $250 million to provide security for gross debt that should hit $712 million by 2013. Its finance, strategy and development committee yesterday agreed by just one vote to get the council to increase Dunedin City Holdings’ (DCHL) uncalled capital to $850 million.

Crs Brown, Bill Acklin, John Bezett, Neil Collins, Paul Hudson, Andrew Noone and Richard Thomson voted to recommend the council increase DCHL’s capital by $250 million. Crs Wilson, Vandervis, Jinty MacTavish, Chris Staynes, Teresa Stevenson and Mayor Dave Cull voted against the recommendation.

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Post by Elizabeth Kerr

1 Comment

Filed under Economics, Politics, Project management

One response to “DCC borrowing capacity

  1. Richard Thomson has joined with the old guard and voted to allow massively increased debt. Perhaps some increase was required to pay for DCC committed spending, but the $138 million “headroom” is just a blank cheque for more spending.
    It is ridiculous for Athol Stephens to claim that there is no disadvantages in increasing the capital. The obvious disadvantage is that the capital can be lost. Fibre is a notoriously unprofitable investment, and a politically-motivated irrigation investment sounds high risk to me.

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