Audit NZ true but pale in delivery?

### ODT Online Thu, 14 Jun 2012
Audit NZ warns of risks from debt, stadium
By Chris Morris
Rates hikes, increased debt levels or cuts to services remain a risk for the Dunedin City Council as it grapples with uncertainty over the Forsyth Barr Stadium, Audit New Zealand warns. The assessment came in two Audit NZ reports presented to the council’s finance, strategy and development committee yesterday. One report studied the council’s draft long-term plan for the next decade, to 2022, while the other scrutinised the council’s performance in the year to June 30, 2011.

Audit director Ian Lothian, in his long-term report, said council assumptions the stadium would cover its own costs and ensure rates were not affected remained a “high financial risk” to the council’s plans.

Stadium revenue projections were “as yet unproven”, dependent on income from rentals and sponsorships, and “still … a big assumption”, Lothian warned. The near-liquidation of the Otago Rugby Football Union highlighted the risks inherent in the stadium investment, he said.
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Report – FSD – 13/06/2012 (PDF, 1.1 MB)
Management Report from Audit New Zealand – Long Term Plan
Report – FSD – 13/06/2012 (PDF, 1.2 MB)
Management Report from Audit New Zealand – Year Ended 30 June 2011

The council fiasco widens. Keep indulging professional rugby (HPSNZ) why not.

### ODT Online Thu, 14 Jun 2012
Council to retain building
By Chris Morris
The Dunedin City Council has moved to retain direct ownership of High Performance Sport New Zealand’s Dunedin base. The move would see the council retain ownership of the $5.1 million building at Forsyth Barr Stadium, together with the land it sat on, worth $1.71 million. The council transferred the land to Dunedin Venues Ltd last year, and was to do the same with the building this month.
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Posted by Elizabeth Kerr


Filed under Business, DCC, DCHL, DVL, DVML, Economics, Events, Media, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

6 responses to “Audit NZ true but pale in delivery?

  1. Anonymous

    ‘Committee chairman Cr Syd Brown, questioning Mr Lothian, asked if the council was responsibly managing its assets by opting for self-insurance. “Reckless is not a word I would apply to any of your operations,” Mr Lothian replied.’

    Oh, okay then, what about these words: Irresponsible, thoughtless, uncontrolled, inattentive, hasty, careless, rash, … a thesaurus is full of such words if he’s short of one to apply. Or am I misunderstanding Mr Lothian?

    • Elizabeth

      Mr Lothian is an odd individual as colleagues who have had letters from him will attest. Rather than blanch or panic at the dismal figures and position that describe DCC he steers a discourse of distance. How much risk is enough? How much impoverishment of ratepayers and residents, due to the wilful overspending by the current and previous councils, is too much? No straight answers from Mr Lothian. Perhaps more of us can tell him in writing, of the council’s lack of prudent and conservative management (LGA) of ratepayer funds now and previously, and as will unfold under Cull’s leadership in the months to come before he’s voted out of office in 2013. The Dunedin district is unlikely to have an uneventful decade or more ahead with respect to natural disaster, fate has cruel ways. You can’t bet on any safety. Not when the council is at its limit.

  2. Mike

    I noticed that disconnect too – I suspect one of them was misquoted – either Brown asked if he was being reckless or Lothian was saying that Brown wasn’t being responsible

  3. Anne Elliot

    What I notice is that Hudson and Brown frequently ask rhetorical questions that will cause the respondent to declare that certainly the stadium councillors are not guilty of being reckless – or any of the terms proposed by Anonymous above. In their slow, droning voice, they do so without being aware of how old and past their use-by-date they look.

    • Elizabeth

      That’s so, Anne. Would be interesting to get into Ian Lothian’s head to obtain his unguarded personal professional view of DCC financial reports and activities. Would take a subpoena to get some of the way there.

  4. Elizabeth

    ### ODT Online Thu, 21 Jun 2012
    ‘Bemused’ councils query reform
    The Government will face a united front from New Zealand councils “bemused” by planned changes to the local government sector, Dunedin Mayor Dave Cull says. His comments came as mayors and council chief executives from around the South Island gathered in Dunedin for yesterday’s Local Government New Zealand zone five and six meeting. Mr Cull said much debate at the meeting centred on local government reforms unveiled earlier this year and now being progressed by new Local Government Minister David Carter.
    Read more

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