Cull’s council thinks $750,000 per annum to DVML represents good value?

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.
Read more

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.

Overall losses
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

5 Comments

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

5 responses to “Cull’s council thinks $750,000 per annum to DVML represents good value?

  1. Elizabeth

    Think what the likes of Toady Cull The Ineffectual could do with this! Oh wait. He pretty much has this power already (eg Syd Brown as FSD chairman) but not the (new) financial resources.

    ### ODT Online Thu, 26 Jul 2012
    Mayor backs extra powers plans
    By Chris Morris
    Dunedin Mayor Dave Cull is backing plans to grant New Zealand mayors extra powers and financial clout. The proposal was among the Better Local Government reforms proposed by the Government, now before a select committee and being considered by councils across New Zealand. The changes would see mayors granted new powers to appoint deputy mayors, create committees and appoint their chairmen. They would also be explicitly expected to lead policy, plan and budget development initiatives, and would receive new financial resources to fund the work. The new powers, if approved, would be in force from the 2013 local body elections.
    Read more

  2. Anonymous

    The Dunedin City Council is corrupt. They’re in it too deep so keep burying themselves further. The difference between Mr Ineffectual and his Chairman is one believes his stink smells like roses and should be appreciated by all. The other has his head in that stink looking for the roses.

  3. Elizabeth

    The DCC Community Development committee met on 23 July 2012.

    The agenda item with the public excluded (and Mr Hamish Tourism Dunedin Saxton mentioned) was likely to have been about council considering how much ratepayer funding to put to next month’s All Blacks visit to Dunedin, including use of the loss-making stadium.


    Report – CDC – 23/07/2012
    (PDF, 34.2 KB)
    Minutes – Events Assessment Subcommittee

    ### ch9.co.nz August 8, 2012 – 6:12pm
    Dunedin to be at its best
    Dunedin is expected to be rugby city at its best, when the All Blacks come to town next month.
    Video

  4. Hype O'Thermia

    Stint not. Who of us will not be grateful to pay till we’re faint with hunger and excitement, for the sake of the All Blacks coming to Dunedin.

  5. Anonymous

    It will be interesting to find out which councillors vote to give more money to professional rugby. They’ve all got big, stinky egg on their face, regardless of how they try to play down their guilt in public. The fact they must discuss these issues in private just adds more weight to the corruption in this council.

    This will of course be one more nail in their council career. Not that there is much room left on the political coffins for the likes of Syd Brown and Bill Acklin. There’s still room for Dave Cull but not. a. lot.

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