DScene: What’s a nice wee loan between friends

Councillors spoken to by D Scene were unaware of the loan.

### DScene 15-6-11
Butler questioning $1.4m loan for stadium seating (page 3)
Former Stop the Stadium head Bev Butler is questioning a $1.4m commercial loan for temporary seating at the [Otago] Stadium. Dunedin City Council (DCC) council-controlled management company Dunedin Venues Management Ltd (DVML) borrowed money for east stand temporary seating. Butler questioned whether DVML had the authority to borrow the money, as the venues company’s Statement of Intent noted spending of more than a million dollars by DVML needed DCC approval.
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Posted by Elizabeth Kerr

3 Comments

Filed under Architecture, Construction, Design

3 responses to “DScene: What’s a nice wee loan between friends

  1. Russell Garbutt

    Wouldn’t it be quite nice for a comprehensive and TRUTHFUL resume of all of the costs of the stadium to be released by this Council. Forget about aportioning blame at this stage and forget about trying to justify anything – just for once, come out and tell the whole truth. I won’t hold my breath on those that have never told the truth, but several of these Councillors were elected on the basis of transparency.

    It shouldn’t take hours and hours of effort by a resident and ratepayer to find out where our rates have gone and are going – but thank goodness for Bev Butler who has started to reveal just some of the truth.

  2. Russell Garbutt

    Just another point about this.

    There is a huge difference between Capital Expenditure and Operating Expenditure. I have no doubts that there are tax implications, but the reality is that hiring these wretched seats for a rugby match is clearly an operational expense that should be a fraction of the cost of buying them. Purchasing them will incur a greater up-front cost and will result in greater depreciation etc.

    I believe that it is yet another clear sign that a great deal of direct costs for this stadium are being slyly put into other Council activities and budgets in the hope that the true costs will be obscured.

    Come on Councillors – front up with some transparency.

  3. Peter

    Dave Cull was briefed by Athol Stephens on this loan, but chose to not tell all his Councillors. As things stand, DVML can borrow money – officially up to one million dollars, but obviously more when it suits, without passing it through Council. Begs the question as to whether there have been any other loans raised? They can decide on dropping the budget on things like shark nets, but the stadium is sacrosanct for spending ‘as needed’. In the last election Cull made great play on transparency. I didn’t believe a word he said, but unfortunately many people did and voted for him.
    Nothing from the ODT to follow up on this report in D Scene. The cover up continues.

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