Daily Archives: February 27, 2012

Another expensive nut cracks, ORFU liquidated?

### stuff.co.nz Last updated 20:18 27/02/2012
Otago rugby union heading into liquidation
By Mike Houlahan – Fairfax NZ News
With debts of $2.35 million, and a loss from the last financial year of $862,000, the decision was made at a press conference in Dunedin tonight, with NZRU CEO Steve Tew and chairman Mike Eagle in attendance. The 126-year-old union, which has not held the Ranfurly Shield since 1957 or won the National Provincial Championship since 1998, will cease trading by Friday. The New Zealand Rugby Union (NZRU) is taking immediate steps to support community rugby across the Otago region. “We are stepping in to support community rugby and all the amateur players, volunteers, administrators, and others who have a stake in the game,” said NZRU chief executive Steve Tew. Otago has a long and proud rugby history and the union has played a vital role in the rugby community for 131 years so this is a sad day.
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What does this situation mean for Forsyth Barr Stadium? (via Stuff)
The Highlanders still intend to play at the stadium and today’s events do not impact on that. The Highlanders will host their first home game for the season this weekend. Our desire is for a team from Otago to participate in the ITM Cup, but it is too early to discuss what will happen in that regard. Any issues relating to the financial impact on the stadium should a representative team from Otago not play in the ITM Cup are for the stadium owners to comment on.

http://www.odt.co.nz/sport/rugby/199277/orfu-be-put-liquidation

Related Posts and Comments:
17.2.12 Does the insolvent ORFU deserve any more community support?
11.2.12 Where’s this going, ODT?
14.12.11 Davies “in the middle of a conversation” – how to fudge DVML…
2.12.11 DVML gets into bed with ORFU
13.10.11 MAD Classics #26 – You’re a crook or a businessman?

Posted by Elizabeth Kerr

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Filed under DCC, DVML, Economics, Events, Heritage, Media, People, Politics, Project management, Property, Site, Sport, Stadiums

DCC Statement of Public Debt Summary as at 31 December 2011

Comment received.

Calvin Oaten
Submitted on 2012/02/26 at 12:43 pm

I looked up the DCC site, and just happened to feel like looking at the Finance, Strategy and Development 31 December 2011 report. Of particular interest is the Public Debt Summary Statement.

Stadium balance $148.404m. Interest paid $4.222m. Now if DVL is to assume $110m of this debt, it is official, the balance of $38.40m stays on the DCC’s books. A dollar to a doughnut this is the private funding underwrite.

The total debt of the DCC is $344.819m. Not sure what DCHL’s debt will be at 31 December but at 30 June last, it was $4.316m short term and $534.220m long, for a total of $538.54m. All up, it would seem that at New Year’s Eve we citizens are shouldering a total of $883.336m. Feel good? Split that among 54,000 ratepayers and this amounts to $16,358 per person! Still feel good? We ought to, as this earns us the title of champion most highly rated citizens in New Zealand, by a country mile. Where is the medal?

Investment and miscellaneous property debt (excluding property operational but including Carisbrook) carries debt of $33.869m. Here is a portfolio the DCC could do without. Investments like this are for organisations having a debt/equity ratio much much healthier than the DCC’s. Sold up, this portfolio could remove that debt and release the equity for further debt reduction. I recently did an exercise on this aspect and emailed it to Dave Cull copied to Paul Orders. Response? Zilch!

Interesting also, is that of the total debt of $344.819m, that pertaining to all Transport Network, Public Health, City Development, Museums (including OSM, and Chinese Garden), Sport Recreation & Leisure (excluding all things stadium), and Corporate Support add up to $140.881m. So, it can readily be seen just what a tremendous burden the stadium is upon the city.

Report – FSD – 09/02/2012 (PDF, 660.0 KB)
Financial Result – 6 Months to 31 December 2011

See Attachment 7 – Statement of Public Debt as at 31 December 2011 Summary Sheet

Posted by Elizabeth Kerr

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Filed under DCC, Economics, Politics, Project management, Stadiums

Bringing DCC councillors, staff, related entities and individuals to account, let’s get honest

The Dunedin City Council is dragging its heels, for reasons that should be made public immediately, on declaring the wayward spend that has brought the new stadium about, including the realignment of SH88 — all of which has taken the project beyond the councillors’ role required by the Local Government Act, to act prudently and conservatively with ratepayers’ money.

The councillors’ fiduciary responsibility to this community has been abandoned by thorough incompetence and deception that borders on the criminally fraudulent. This will require direct action by the Minister of Local Government, Nick Smith. There is no getting around this.

The independent review of stadium costs by PricewaterhouseCoopers is of necessity limited by its price tag of $55,000 and the instructions of the commissioning client, Dunedin City Council. Meanwhile, the ‘independent’ Otago Daily Times is prepared to sit back as a moderate, to cover tail.

In terms of “who”, he said if something “untoward” was found, “there will be accountability issues”. -Cull

### ODY Online Mon, 27 Feb 2012
Extra cost on stadium not massive blowout: Cull
By David Loughrey
Dunedin may not being facing a huge blowout in the cost of the Forsyth Barr Stadium, but it is possible people or organisations may be “brought to account” following an investigation. It emerged on Friday questions remained about the final cost of the stadium – six months after the facility was built.
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Posted by Elizabeth Kerr

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Filed under Architecture, Construction, CST, DCC, DCHL, Design, DVL, DVML, Economics, ORC, People, Politics, Project management, Property, Site, Sport, Stadiums