INSULTING, IMMORAL, IMPRUDENT
We have watched the latest reports and statements of intent (SoI) flow to the council’s Finance, Strategy and Development committee meeting held yesterday, chaired by Cr Syd Brown.
Immoral profligate spending and corrupt practices continue under this council led by Mayor Dave Cull – there is no other take on the council’s rort involving the flow of ratepayer funding to Dunedin Venues Management Ltd (DVML); which likely represents at least in part, a direct flow to Otago Rugby Football Union (ORFU) and Professional Rugby – since DVML and ORFU share staff, space, marketing, and more.
Nobody seriously believes DVML’s forecast losses have been reduced to $873,000 for the three years to June 2015. Obviously, more fudging.
Mayor Cull – treating the Dunedin Community this way is your political end. You’re a low piece of work, as is Lesser Dunedin (formerly Greater).
### ODT Online Thu, 26 Jul 2012
Finance boost for stadium operating firm
By Chris Morris
The finances of the company running Dunedin’s Forsyth Barr Stadium look set to improve after cost-cutting and a cash injection from the Dunedin City Council. Dunedin Venues Management Ltd’s revised statement of intent – setting the company’s objectives for three years to June 2015 – were presented to councillors at yesterday’s finance, strategy and development committee meeting.
In May, when DVML revealed a $1.9 million loss for the first six months of the 2011-12 year, the company also projected losses totalling $3.3 million for the period. The revised document, accepted by councillors yesterday, now forecast losses in those years totalling $873,000.
The improvement also largely reflected the decision [during the council’s budget deliberations earlier this year] by councillors to contribute another $750,000 a year to the DVML budget, council finance and resources general manager Athol Stephens told yesterday’s meeting.
25 July 2012
DCC Finance, Strategy and Development committee meeting
(Link to Agenda and Reports)
Report – FSD – 25/07/2012 (PDF, 178.3 KB)
Funding Transfers to DVL by Calls on Capital
Report – FSD – 25/07/2012 (PDF, 712.5 KB)
Revised Statements of Intent for DVL and DVML
Comment at ODT Online.
Submitted by farsighted on Thu, 26/07/2012 – 9:32am.
DCC owns DVL and DVML. DVML pays DVL rental for the stadium. DVL pays DCC a dividend. DVL is budgeting a loss. DVML is budgeting a loss. DCC is injecting cash into DVML to make the losses look smaller.
But overall, the loss is still the same. This will continue until DVML can make an operating profit without cash injections. However, it is pretty clear, as many have said from the start, that it is not possible for DVML to make an operating profit – it has been set up to fail.
While we can’t relitigate the past (as dear Richard used to say), we can treat this as a marker for the future. The DCC is ill-equipped to operate CCOs and CCTOs and any attempt to create new structures or enterprises should be regarded with the utmost suspicion and concern.
Posted by Elizabeth Kerr