Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter

### The Press Last updated 05:00 29/08/2012
Business: Opinion
Councils should stay away from business
By Chalkie – Tim Hunter
There are people who believe local councils should own businesses because they generate returns and ease the burden on ratepayers. Chalkie is not one of them. Your humble correspondent thinks councils should stick to their knitting. The reasons are many and varied. Taking a couple of examples at random:
a) Councils can start to think they are there to make money instead of, say, distribute water; and
b) Councils are not commercially savvy shareholders.
Poppycock, you say. Show me a single case of a council’s emptyheaded pursuit of unprofitable goals. In response, Chalkie invites you to consider Dunedin.

In that southern city the council is the proud owner of Dunedin City Holdings, whose job, according to its report, is “to manage the commercial investments of the Dunedin City Council to maximise returns”. The businesses under DCH’s umbrella include electricity network company Aurora, forestry company City Forests, the Taieri Gorge Railway Company and an engineering business called Delta Utility Services. DCH’s 2012 numbers are not yet available, but last year it trumpeted an improvement in revenue and profit and a total cash return to the council of $23.2 million. If you thought that was a good result, you’d be wrong.

When you look at several years of DCH numbers a disturbing pattern emerges of ever-increasing millions being borrowed and pumped into underperforming assets. The cashflow statements tell the story.

…A picture therefore emerges of a group prioritising asset growth over profit growth, and staying cashflow positive, just, through heavy borrowing. Chalkie suggests another term for this behaviour is empire building. Of course, it could be justifiable if the asset build-up is value enhancing in the long term, but is it?
Read more

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[Reference: New Zealand Companies Office]

DELTA UTILITY SERVICES LIMITED
Previous names:
DELTA ENERGY LIMITED (13 May 1998)
THE ELECTRIC COMPANY OF DUNEDIN LIMITED (29 Mar 1995)

Company number: 453486
Incorporation Date: 16 Feb 1990
Company Status: Registered
Entity type: NZ Limited Company
Company Addresses:
Registered Office – 10 Halsey Street, Dunedin
Address for service – 10 Halsey Street, Dunedin

Directors (5 of 5):

Full legal name: Michael Owen COBURN
Residential Address: 154 Portobello Road, Vauxhall, Dunedin 9013
Appointment Date: 08 Oct 2003

Norman Gilbert EVANS
15 Irvine Road, The Cove, Dunedin
13 Jul 2005

Ross Douglas LIDDELL
33 Leithton Close, Dunedin 9010
24 Jun 1998

Stuart James MCLAUCHLAN
3 Walsh Lane, Maori Hill, Dunedin 9010
01 Jun 2007

Raymond Stuart POLSON
80 Browns Road, St Albans, Christchurch
21 Dec 1994

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Posted by Elizabeth Kerr

Why US Congress does not pass a budget

[supplied]

This may appear to be a problem just for the USA – it’s their government’s debt, right? However, if the US ‘implodes’ from that debt, the world’s financial markets will implode too, and then we’ll all be in deep, deep trouble!

WARNING: IF YOU CAN’T HANDLE REALITY AND WOULD RATHER NOT KNOW WHAT IS PREDICTED FOR THE UNITED STATES OF AMERICA, DO NOT WATCH THIS.

Not so complicated when it’s laid out in simple math. The pain that he’s talking about? Remember, government’s biggest source of income is ORDINARY Americans. Start getting ready for it as best you can.

Why Congress Does Not Pass a Budget

Published on Mar 14, 2012 by Hal Mason

See parallels to Dunedin City Council and its debt, and who will have to pay

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Posted by Elizabeth Kerr

Beloved Prime Minister ‘Jonkey’ speaking #childpoverty

### ODT Online Tue, 28 Aug 2012
Universal child benefit a ‘dopey’ idea: Key
Prime Minister John Key has dismissed as “dopey” a recommendation from a panel of experts that a universal child payment should be reintroduced as a way of reducing child poverty. The expert advisory group brought together by Children’s Commissioner Dr Russell Wills to find solutions to child poverty released its recommendations today.

Group members include AUT accounting expert James Prescott, Major Campbell Roberts of the Salvation Army, Professor Ritchie Poulton of the Dunedin School of Medicine and Philippa Howden-Chapman, a public health expert.

Among [the group’s] recommendations for the longer term was a universal child payment for under sixes. The payment would be highest while the child was a baby, when costs were high, and would decline through childhood. Co-chair Dr Tracey McIntosh said the payment was about ensuring children had the best start in life. “Investment in the early years has a particularly strong link to better outcomes for disadvantaged children”.
Read more

Download report and related documents here:
http://www.occ.org.nz/publications/child_poverty

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### ODT Online Sun, 26 Aug 2012
Child poverty costs country $6b a year: report
Child poverty is costing New Zealand $6 billion each year, according a new report commissioned by organisation Every Child Counts.

Every Child Counts chairman Murray Edridge defined poverty as children missing out on needed goods and services including adequate housing, nutrition, warm clothing and healthcare.

Manager Deborah Morris-Travers told TVNZ’s political programme Q+A 25 per cent of children in New Zealand are living in poverty. She said it was concerning to see how poverty affected different ethnicities with 40 per cent of Pacific Island children and 27 per cent of Maori children living in poverty. The report, “1000 days to get it right for every child – the effectiveness of public investment in New Zealand children”, released this week, examines initiatives from the Netherlands which could be applied here. APNZ
Read more

Download report here:
http://www.everychildcounts.org.nz/news/1000-days-to-get-it-right-for-every-child-poor-child-outcomes-costing-the-nation-billions/

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Household Incomes in New Zealand: Trends in Indicators of Inequality and Hardship 1982 to 2011 (Aug 2012)

Download report and related documents here:
http://www.msd.govt.nz/about-msd-and-our-work/publications-resources/monitoring/household-incomes/index.html

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Related Posts and Comments:
17.2.12 Salvation Army: The Growing Divide
23.11.11 Last night, did John Key watch…(TV3): Inside Child Poverty
26.10.11 2011 Voices of Poverty: Research into poverty in Dunedin

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Posted by Elizabeth Kerr

DIA’s political cover-up of TTCF and ORFU rorts

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

“In the course of finalising the recovery package for the Otago Rugby Football Union, the NZRU became aware of potential issues relating to funds obtained by the union from gaming trusts,” public affairs general manager Nick Brown said.

### ODT Online Mon, 27 Aug 2012
ORFU pokie papers withheld
By Hamish McNeilly
Confidential documents relating to the Otago Rugby Football Union’s involvement with pokies are being withheld by the Department of Internal Affairs. The department declined an Official Information Act request to release the New Zealand Rugby Union-supplied documents on the grounds it “would be likely to prejudice the supply of similar information”. The Otago Daily Times has lodged a complaint with the Office of the Ombudsmen seeking the release of the information, citing public interest.
Read more

See related comments and discussion at Keeping ORFU sweet [email]

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Posted by Elizabeth Kerr

Extorting, misappropriating funds… ‘the running tap’

[supplied]

Whatever you think of Alan Jones, you owe it to yourself to listen to this before it’s removed from circulation. Give yourself about 25 minutes, but I reckon it’s the most informative broadcast you will hear.
Remember, this is not about Iran or Pakistan or some mad despot, but this is happening here in Australia and refers to our powerful, power hungry union leaders who are now in charge of running this great country of ours. Unfortunately, the widespread corruption appears to lead direct to the PM’s office itself and one can understand their eagerness to suppress the news media and freedom of speech.
Social justice indeed!!
You may have a different slant on things of course, but that’s your democratic right.                

Subject: Interview by Alan Jones on 2GB — Re Julia Gillard

For all who may be interested, Andrew Bolt ran an abbreviated version of this story yesterday at 10 AM.

At 11.30 AM yesterday he got 2 death threats and a separate phone call from Paul Howse current AWU Secretary telling Bolt that the AWU intended to sue Bolt.

This morning the TV station hosting ‘The Bolt Report’ was told that it could expect ‘all sorts of trouble from service suppliers and transport companies servicing the network unless it retracted the story and sacked Bolt’.

Don’t be surprised if Alan Jones is also silenced in some way.

Listen carefully to this radio broadcast. It will make your hair curl… And this recording may not last long on line…

This matter has been touted around for some time, but a tight lid has been put onto it. Small leaks here and there…
Something has to give somewhere… And pretty soon…

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Friday, 20 July 2012
Julia Gillard and the Australian Workers Union
Alan Jones is joined by Michael Smith to discuss the Prime Minister and the AWU. Listen to it at

http://www.2gb.com/index2.php?option=com_newsmanager&task=view&id=13667

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### nzherald.co.nz 5:58 PM Thursday Aug 23, 2012
Gillard hits back at ‘defamatory’ claims
Prime Minister Julia Gillard says she never personally benefited from a union fund which she helped set up for free, and off the books, when she was a lawyer 17 years ago. Ms Gillard held an hour-long news conference at Parliament House in Canberra on Thursday to deal with “false and highly defamatory” claims about her work with law firm Slater & Gordon in the 1990s. AAP
Read more

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Posted by Elizabeth Kerr

Dunedin’s 3 waters, no CCO

UPDATED POST

● Dunedin’s water, wastewater and storm water network

DCC Three Waters Strategy
Management of Water, Wastewater and Stormwater (The 3 Waters)
Our main objective is to protect public health and safety by delivering enough safe drinking water to, and safely removing waste and storm water from, everyone connected to the network, with minimal impact on the environment and at an acceptable financial cost. We also aim to provide protection from flooding and erosion as well as controlling and reducing pollution in stormwater discharges to waterways and the sea. As well as delivering services today, we need to plan for the future, making sure we will be able to deliver the service that future generations will need.
http://www.dunedin.govt.nz/your-council/council-projects/3waters

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Dunedin City Council
Media Release

Working Party to Recommend Dunedin’s 3 Waters Remain In-House

This item was published on 24 Aug 2012.

The DCC’s 3 Waters Working Party has prepared a report for the Finance Strategy and Development Committee on 5 September, recommending that a Council-controlled organisation (CCO) should not be formed, but instead an enhanced status quo option should be developed.

With information gathered from numerous background reports, including the extensive assessment of the proposal from DELTA Utilities Ltd, commissioned from Morrison Low and Associates, the 3 Waters CCO Working Party has formulated a view on the preferred future structure for the delivery of 3 Waters services (waste [sic]* supply, wastewater and storm water).

The reasons supporting the recommendation that a CCO not be formed are:

● The DCC would be less able to directly manage and control a CCO to achieve its aims, particularly where those aims relate to a whole-of-DCC approach to achieve benefits for the wider city.

● The retention of full governance responsibilities with the Council means it can more directly make decisions about the present and future direction of the Water and Waste department.

● The DCC’s asset management capability is well-respected in New Zealand’s water industry and development of its capability has been underway for some time as part of existing business improvement processes. Retaining this sophisticated asset management capability in-house allows the DCC to have confidence in its ability to understand its assets and to plan for the future delivery of these services.

● Externally appointed directors bring additional skills but there are other ways such input can be provided for without requiring a change in governance structure.

The three subsequent recommendations in the report are to:

● Retain asset management in-house

● Review the service delivery options for operations and maintenance (This is in line with the review of other DCC services to ensure the best value for money.)

● Investigate the creation of an advisory board

The DCC’s Water and Waste Services staff, who are directly affected by this report have been informed today of its contents. They now await the decision that will be made when the report is presented to the Finance, Strategy and Development Committee on Wednesday 5 September.

The report and associated documents will be available shortly before the Committee meeting.

Contact General Manager City Operations on 477 4000.

DCC Link

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* What if? suggests the paragraph should read: “…the 3 Waters CCO Working Party has formulated a view on the preferred future structure for the delivery of 3 Waters services (water supply, wastewater and storm water).” -Eds

Related Post:
16.8.12 Dunedin water assets

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Posted by Elizabeth Kerr

Martin Legge releases emails to Dunedin community #ORFU

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

Comment received.

Martin Legge
Submitted on 2012/08/22 at 9:58 pm

I am very concerned about what Gambling Director, Maarten Quivooy is representing to the Dunedin Community.

Mr Quivooy claims to have no jurisdiction to investigate ORFU and the Centre of Excellence. He is playing you for fools – making you all believe that those two groups were your standard grant applicants just like Plunket, a local Kindergarten or some other worthy community group entitled to apply to TTCF for grants. Nothing is further from the truth.

The DIA have over many years, spent countless investigation hours, watching the abnormal money flow from South Auckland to Otago, always trying to prove ORFU’s interest in the Jokers Bars and hold those accountable. As was told to me, my testimony and documents provided the missing link for DIA.

The internal TTCF 2005 email between Hodder and the TTCF Trustees (in previous post) is pretty clear about the deal with Jokers. It refers to changes with the Jokers bars and that ORFU and Harness racing now each have a share in those bars and what each groups expectation is from the bars. There are more emails and DIA were provided with them in 2010.

This email makes it reasonably clear that ORFU did indeed have an “ownership” or “interest” in Jokers but it now seems DIA are the only ones who chose to ignore their previous concerns. Why you may ask?

Because any proof of “ownership” or “interest” in the Jokers pokie bars significantly changes things – it elevates ORFU into the legal definition of being a class 4 Venue Operator, over which DIA does have jurisdiction and a statutory obligation to act.

Even if TTCF Inc and Centre of Excellence no longer exist as entities it does not prevent DIA from holding TTCF’s Trustees to account for allowing what has occurred.
Read more + Emails

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Related Post and Comments:
15.8.12 Keeping ORFU sweet [email]

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Posted by Elizabeth Kerr

DVML: North vs South game profit/loss [email]

Copy of DVML reply to LGOIMA request received.

From: jo.scully@dunedinvenues.co.nz
To: bevkiwi@hotmail.com
Subject: North vs South game profit and loss
Date: Wed, 8 Aug 2012 22:31:29 +0000

Dear Bev,

Please see attached letter and profit and loss statement for the North vs South game sent on behalf of David Davies,

Kind regards

JO SCULLY
COMMUNICATIONS AND MEDIA

_____________________________________________

PH 03 479 2823
M 027 664 5266
E jo.scully@dunedinvenues.co.nz
W www.dunedinvenues.co.nz

Email Attachments:
[Letter] 120730 – Bev Butler North South Match (PDF, 154 KB)
NorthvsSouth Statement of Income, Expenses and Net Profit (PDF, 24 KB)

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31.3.12 ODT Rugby: Bosses working on inter-island match
The inter-island match has not been played since professional rugby began, but plans remain to reinstate the match in June in Dunedin. The last clash was in 1995 at Carisbrook but this year’s duel will be played across town at the new stadium as part of plans to help bail out the Otago Rugby Union.

15.3.12 [ORFU bailout package] ODT Council debt write-off saves ORFU

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Posted by Elizabeth Kerr

Mr Orders, sir! About your staff expertise…

“We don’t need consultants to tell us the time.”

### ODT Online Sat, 18 Aug 2012
Consultants cost DCC $32m
By Chris Morris
After spending more than $30 million on consultants in three years, Dunedin City Council staff are under pressure to slash spending on outside help, it has been confirmed. Figures released to the Otago Daily Times this week show the council spent $32.59 million on consultants, within Dunedin and further afield, over the past three years. Annual spending was dropping steadily, down from $13.34 million in 2009-10 to $8.66 million in 2011-12, a trend council chief executive Paul Orders was keen to see continue.
Read more

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Comment at ODT Online:

The skills are there
Submitted by topsy on Tue, 21/08/2012 – 7:09pm.

One of the major weaknesses within the DCC organisation is the lack of a central skills database. All too often, department managers reach out to consultants because the required skill does not exist within their own department. That same skill, meanwhile, is sitting unused within a neighbouring DCC department, usually within the same building.
The DCC currently has qualified project managers, quantity surveyors, valuers, etc. The problem today is that no-one outside of that employee’s department knows that the person exists. Often that person is not employed in a role which uses their specialist skill, making it even more difficult for other department managers to identify that skill from within the DCC ranks.
I would recommend that Mr Orders conduct an in-depth staff skills survey – not amongst the managers, but directly with the staff. He may well find that he already owns the solution.

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Posted by Elizabeth Kerr

Dunedin water assets

CAN CITIZENS TRUST DUNEDIN CITY COUNCIL ???

“It’s a major decision for the council. It involves a big chunk of the operation, not only in monetary terms but in staff terms as well, and we want to make sure we get it right.” -Cr Andrew Noone

### ODT Online Thu, 16 Aug 2012
DCC prepares to unveil water plan
By Chris Morris
The Dunedin City Council faces a “pretty major” decision when plans for the management of the city’s $1.6 billion water network are finally revealed, Cr Andrew Noone says. Cr Noone is the chairman of a council working party that has – since January last year – been scrutinising alternative proposals for the future of the network. Options included the creation of a council-controlled organisation (CCO) to manage the network, as well as a bid late last year by another council company, Delta, to provide the council’s water services instead.
Read more

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Comments by Rob Hamlin:

27.6.12 Insuring infrastructure assets
https://dunedinstadium.wordpress.com/2012/06/21/dcc-long-term-plan-201213-202122-and-more/#comment-25123

29.5.12 Assets: city water and sewage system
https://dunedinstadium.wordpress.com/2012/05/29/asset-sales-would-daves-council-sell-us-up/#comment-24332

2.11.11 SCF, DCHL, threat to council assets
https://dunedinstadium.wordpress.com/2011/11/01/dunedin-city-holdings-limited/#comment-19561

19.10.11 Feral ‘Great and the Good’ (G&G) motives
https://dunedinstadium.wordpress.com/2011/08/20/your-city-what-future-broke-council-means-corporatising-our-water-doesnt-it/#comment-19308

19.10.11 The Delta CCTO/CCO option
https://dunedinstadium.wordpress.com/2011/08/20/your-city-what-future-broke-council-means-corporatising-our-water-doesnt-it/#comment-19301

26.9.11 DCHL and the Companies Act
https://dunedinstadium.wordpress.com/2011/09/26/private-sector-funding-donations-to-stadium-construction/#comment-18931

13.4.11 Water and sewage are natural monopolies
https://dunedinstadium.wordpress.com/2011/01/22/our-water-assets/#comment-16612

13.3.11 Stadium, no slowdown in DCC spending
https://dunedinstadium.wordpress.com/2011/03/11/stadium-funding/#comment-16118

24.1.11 Water, as a basic necessity
https://dunedinstadium.wordpress.com/2011/01/22/our-water-assets/#comment-15358

16.1.11 Dear Richard… “the primary responsibility of Council”
https://dunedinstadium.wordpress.com/2011/01/15/just-when-dcc-thought-no-one-was-watching/#comment-15185

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Posted by Elizabeth Kerr

Keeping ORFU sweet [email]

● The Trusts Charitable Foundation (TTCF Inc) ● The Trusts Community Foundation Ltd (TTCF Ltd) ● Otago Rugby Football Union (ORFU) ● Professional Rugby ● Centre of Excellence for Amateur Sport ● Harness Racing ● Department of Internal Affairs (DIA) ● Gambling Commission ● Pokies ● Rorts ● Organised Crime ● Serious Fraud ● Political Interference

Comment received.

Martin Legge
Submitted on 2012/08/15 at 4:35 pm

Below is an email dated June 2005 between TTCF Inc’s General Manager, Warwick Hodder, and the TTCF Trustees. It is one of many documents I was asked to provide DIA along with my 30-page signed statement shortly before Politicians intervened for TTCF and the truth became inconvenient.

Since then DIA have continued to give the public a list of reasons why they can’t act which include – the Gambling Act has a 2-year time frame for prosecution and TTCF Inc no longer exists as an entity.

Firstly, there are no such time frames for taking historical matters to the Gambling Commission or cancelling and suspending a gaming licence.

Secondly, DIA allowed TTCF Inc to remorph itself into TTCF Ltd and in doing so also allowed it to transfer all its pokie pubs which included Jokers Manurewa, the last remaining Jokers venue controlled by ORFU, over to the new entity TTCF Ltd.

So even under TTCF Ltd the unlawful arrangements and a further $800,000 was fleeced from the poorest part of South Auckland into the ORFU. It only stopped when Jokers Manurewa was closed down for commercial reasons.

So you see, DIA still have a 2-year window of opportunity in which to prosecute TTCF Ltd and until June 2013 to do it.

From: Warwick Hodder [mailto:WarwickHodder@xtra.co.nz]
Sent: Tuesday, 28 June 2005 12:00 p.m.
To: Doug Burt; John Wyeth; Murray Acklin; Roger Smaill; Ron Turner (Home); Ross Dallow; Tom Jones
Cc: Modus Group
Subject: JOKERS VENUES

Dear All

There have been some significant developments regarding the ownership of the Jokers venues, to the extent that those now in control have extensive racing (mainly harness) interests. All this has been done between ORFU and Harness so the Union has been in the loop. There are some risks for TTCF Trustees and Modus Group that need to be addressed and I guess if the frying pan gets too hot then we may have to be prepared to walk away from these venues. I do not think it has become quite that drastic but it would be unfair of me not to fully acquaint you of developments. For the time being the current Directors will remain in place but that will change in months to come when financial matters have all been officially dealt with. I am not party to exactly what these arrangements are but have been assured that the current Directors will sign a 3 year venue agreement and we will be officially notified of any changes when they happen and all appropriate forms and other paperwork will be submitted to us for actioning with DIA.

The new owners intend to emulate what the racing codes are already doing in relation to the TAB funds i.e. submitting a quarterly schedule of grants to go to racing.

Their expectation is that racing will receive $2.6m in a year. ORFU are still expecting up to $1m a year and there is supposedly going to be at least 20% available to the rest of the community, which I am guessing is approximately another $1m per year. Extrapolating these expectations out to a turnover figure, using a 45% return to A/P as a means of doing so, basically these venues need to be doing $10m a year, which is what they were doing when they first joined the fray. But things have changed slightly, partly due to a reduction in turnover at Commerce St because the new owners did not work the place as hard as previous management did.

There are two issues that I am uncomfortable with and we need to deal with them sooner rather than later i.e.

1. I am not sure that there will be enough money to make things work for all parties, especially the community

2. The current authorised purpose statement is inadequate to cope with these sorts of initiatives

I have asked their representative to meet with me again today to discuss some more realistic expectations. I suspect they have budgeted for Commerce where it used to be not where it is now. They have moved the operation to a 24 hr one again and so it will certainly improve but whether it meets their expectations is another matter.

We need to probably discuss this whole matter in committee at the upcoming Board meeting.

Warm regards

Warwick Hodder

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Posted by Elizabeth Kerr

Sports comment: ORFU

Tomo
Submitted on 2012/08/13 at 7:50 pm

A good bit of journalism in the odty on Saturday. Page 43. Sports comment by Brent Edwards.

****

Elizabeth
Submitted on 2012/08/13 at 10:38 pm | In reply to Tomo.

Thanks Tomo – it’s pointed!

OPINION

“So, dotted around Otago and elsewhere are men whose errors and egos brought the game in the province to its knees, their sins of commission or omission still tightly under wraps.”

“…Bates acted with honour and integrity. It’s a pity we couldn’t say the same about the men who presided over the biggest financial disaster in New Zealand provincial rugby.”

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Posted by Elizabeth Kerr

DIA reshuffle: new investigation teams, money laundering, criticism

### stuff.co.nz Last updated 05:00 12/08/2012
The money detectives take on casinos
By Steve Kilgallon – Sunday Star Times
A specialist casino investigations team is targeting offshore gamblers pumping millions through casinos on flying visits to New Zealand. The team is part of a major reshuffle at Internal Affairs, which is also establishing a major investigations team tasked with prosecuting sophisticated poker machine frauds, an area where it has faced major recent criticism. DIA staff and Internal Affairs Minister Chris Tremain have been briefed on the changes in the past few days. The casino team will be told its priority is potential money-laundering.

“There are some examples of people being in New Zealand for a relatively short period of time and putting quite a lot of money through the casino,” said Maarten Quivooy, Internal Affairs’ general manager of regulatory and compliance operations. “We are not saying that’s necessarily anything illegal, but it does raise the question ‘what do we know about these things?’

Internal Affairs’ other new team will be called the regulatory investigations team, which will be given extra support, work under Quivooy’s direct command and be told to chase “serious, wilful, deliberate, harmful” offenders.

The department has been heavily criticised in recent years for failing to prosecute alleged pokie rorts. But Quivooy denied the move was a response to that or an acknowledgement of any failings. “We are not doing this to placate people, we are doing it because it is the right thing to do.”

But Internal Affairs critic Martin Legge, a former gambling inspector and later industry whistleblower, said the changes were “akin to rearranging the deckchairs on the Titanic” and a “deliberate and cynical ploy to deflect attention from their spectacular failure in regulating the pokie industry and stopping the rorts”. Legge said Internal Affairs already had a Serious Investigation Unit which had achieved little and he believed the department lacked the “culture, skills and fortitude” to legally outwit rogue trusts.
Read more

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Posted by Elizabeth Kerr

ODT editorial (spot on!) — ORC temporary headquarters

### ODT Online Sat, 11 Aug 2012
Editorial: High price for convenience
Many people will shake their heads in disquiet about the Otago Regional Council’s decision to spend nearly $1 million building a temporary council chamber in its Stafford St car park. Perhaps the councillors and chief executive know something we do not, but it seems poor use of precious ratepayer money when the primary reason appears to be convenience.

It is always important that councillors remember they are serving ratepayers and residents of the region, and that they should do so with a minimum of fuss or ostentation. At the same time, it should be acknowledged that, although there are calls for the council to be disestablished or merged into unitary authorities, it does have significant roles.

Read more

[ODT Thumbnail]

Related Post:
26.6.09 ORC headquarters

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Posted by Elizabeth Kerr

Chinese Garden, Acklin talks utter piffle

Grievous location. Deathly dull. Another DCC triumph… That applies to the venue and Acklin! If the garden was physically linked (see flow) to the redeveloped Otago Settlers Museum it might have had a fighting chance, but no. Turn the site back to parking for the museum. Cut the loss. There are better ways to honour the sister city relationship we enjoy with Shanghai.

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Cr Acklin said it was always expected the garden would not make a profit, although he refused to describe that as a loss. “It can’t be seen as a loss. This was never going to make a profit.”

### ODT Online Wed, 8 Aug 2012
Falling numbers prompt shake-up
By Chris Morris
The Dunedin Chinese Garden could be in for a shake-up as visitor numbers continue to decline, leaving ratepayers to foot more of the bill. Figures released to the Otago Daily Times yesterday showed the number of visitors has plummeted since the garden opened four years ago, from 83,000 in the first year to just 28,000 in the 2011-12 year. The decline had contributed to annual budget shortfalls that have together cost ratepayers $1.02 million, due to a council agreement to cover operating costs unable to be met by the garden.
Read more

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Posted by Elizabeth Kerr

DCC, DCHL, debt, democracy (and professional rugby)

Cr Vandervis told yesterday’s meeting the council holding company would borrow $6 million to help fund dividend payments to the council in the 2012-13 year. The council would also draw another $3 million from the Waipori Fund in the same period, and taking money from other “places it doesn’t exist”.

Cr Kate Wilson denied the council was engaged in “trickery”… describing Cr Vandervis’ comments as “lies”.

### ODT Online Tue, 7 Aug 2012
Ire and apology at heated meeting
By Chris Morris
Allegations and threats flew when a Dunedin City Council meeting erupted yesterday over claims the organisation was relying on millions of dollars in loans to keep rates down. Cr Lee Vandervis began a verbal melee at yesterday’s meeting by claiming borrowing by Dunedin City Holdings Ltd continued to offset council rates. The suggestion was quickly rejected by DCHL chairman Denham Shale, who last night confirmed to the Otago Daily Times the practice had ceased under the company’s new board as of July 1.
Read more

It’s interesting Cr Syd Brown has inside knowledge on (the latest iteration of) DCHL’s financial manipulations, while other councillors appear not to. Since when has Audit New Zealand been the last ‘honest’ word on (iffy) council accounting and book shuffling. We built the stadium didn’t we, and we fund professional rugby as if we ACCEPT this as council core business. You’re excused for thinking Audit New Zealand has hands in pockets; we do know it runs a conveniently narrow brief for audit purposes. But isn’t this FUN FOR SYD.

Cr Syd Brown, chairman of the finance, strategy and development committee, said the community should be reassured the 5% rates increase had been struck for 2012-13. That followed a democratic process accepted by councillors, which had also been “given the all clear” by Audit New Zealand, he said. He also reassured councillors DCHL had committed to paying dividend payments without borrowing to do so.

Do we accept Sydney Brown as Apologist for Dunedin City Council?

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Who is DCHL now? (spot the token woman)

Arthur William BAYLIS (Queenstown)
Appointment Date: 31 Oct 2011

Graham William CROMBIE (Dunedin)
17 Jul 2012

Kathleen Enid GRANT (Mosgiel)
17 Jul 2012

James Denham SHALE (Auckland)
31 Oct 2011

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### ODT Online Tue, 7 Aug 2012
Councillors back four-year term
By Chris Morris
Chants of “four more years” could soon be ringing out inside the Dunedin City Council chambers. That is if Dunedin city councillors get their way after voting yesterday to support a push to extend three-year local body terms to four years. The idea was already being promoted by councils in Christchurch and Wellington in their submissions on the Government’s better local government reforms, which are before a select committee.
Read more

How to lock in sheer incompetence for four years… Is this more or less DEMOCRACY? What would we know, people keep voting back in the likes of Brown, Hudson, Collins and Stevenson.

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Posted by Elizabeth Kerr

Stadium deathwatch

### ODT Online Sun, 5 Aug 2012
The Stadium challenge: make it pay
By Chris Morris
There will be no birthday bash when Forsyth Barr Stadium in Dunedin turns one year old tomorrow.
Read more

This story featured in the ODT print edition on Saturday 4 August.

The first year (via ODT)
The good
• 375,000 people through gates (250,000 were expected).
• 269 events, including 150 conferences, concerts, trade shows, meetings and social events and 119 sporting or community events.
• Rugby World Cup matches, Elton John concert, Highlanders crowds among highlights.
• $14.9 million economic boost for Dunedin estimated from Elton John concert alone.

The bad
• $1.9 million loss booked by Dunedin Venues Management Ltd in first half 2011-12 year.
• $3.3 million losses forecast to 2015 until cost-cutting and extra council funding reduced loss to $873,000.
• PricewaterhouseCoopers confirms $8.4 million construction overspend, interest costs push final stadium bill to $224.4 million.
• No major follow-up act to rival Elton John concert; talks continuing.

The ugly ???

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Raging *stadium* success was never PLANNED for Dunedin.
Not with Malcolm Farry leading the charge to build and operate the thing with his Carisbrook Stadium Charitable Trust (CST) – a private trust with its books kept well hidden from public scrutiny but which received public funds from Dunedin City Council. CST was also responsible for purchase of properties for the stadium site, at highly inflated prices (check names of trustees and those handling property negotiations).
Not with DCC shell companies (joke) – Dunedin Venues Management Ltd (DVML) and Dunedin Venues Ltd (DVL) that have identical boards and have been set up to get LARGE debt conveniently off the council books. The debt still remains and is the council’s debt, nevertheless.
Not with Dunedin City Holdings Ltd (DCHL) – a cot case where the stadium is concerned, made worse with DVML and DVL moved under its wing.
Hurrah.

Partial list only…

– (in the first year) Professional sporting fixtures were in the minority at the stadium and 69% of all events staged were considered ‘community-based’.

– Otago Rugby Football Union (ORFU), a loss-making enterprise loosely considered to be an ‘anchor tenant’ – never far from liquidation, historically the recipient of council largesse – is propped up by DVML (read DCC and Dunedin ratepayers). ORFU is currently embroiled in a fraud investigation by Department of Internal Affairs (DIA) in regards to pokie rorts worth millions of dollars. Meanwhile, ORFU owes DCC $480,000 via the bailout package – this includes a dept of $25,000+ for an ORFU black-tie dinner held at the stadium last year.

– Stadium naming rights sponsor did not front load its financial support.

– Private sector funding promised by CST did not eventuate – confirmed by forensic auditors PricewaterhouseCoopers (PwC).

– (rugby and stadium related) Council-owned company Delta Utility Services Ltd (check names of directors, any change yet?) tied up with property purchases at Jacks Point near Queenstown and at Luggate.

– (stadium related) Information about council Bonds offered to ‘habitual investors’ not yet in public domain.

– DCC and DCHL borrow to pay interest on excessive borrowings, exacerbated by the stadium project.

– Costs to re-designate (and settle with affected property owners) the State Highway 88 realignment around the stadium will be excessive. High Court action continues.

– Several users of the venue are paying no venue hire fees at all.

– Search for a high-calibre replacement DVML chief executive continues.

– Results of DVML and stadium review expected by November.

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How not to run a business
Comment at ODT Online by russandbev on Sun, 05/08/2012 – 1:12pm.
I note that the cost per adult to attend the ITM cup matches at the stadium is $16 per game. I also note that the board of the ORFU don’t know the cost of hirage of the stadium, nor currently have any cost projections. And yet the ticket costs have been set. A quick question then, how can the business set its ticket prices when it doesn’t have a clue about its costs?

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Posted by Elizabeth Kerr

Extraordinary editorials

The ODT bellows: “They should be more open.” Their editorial today is a form of tirade directed at the Southern District Health Board (SDHB); with a wrist slap to the University of Otago. The message, however, has sticky parallels.

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### ODT Online Fri, 3 Aug 2012
Editorial: Open communication
It is natural organisations want to control news about themselves. They want “good news” to spread and bad news to remain as hidden as possible. No-one wants their dirty linen flapping in the breeze. Thus, public relations firms and communications specialists are paid to develop strategies and to help massage and control information. Of course, it pays to be upfront and open because the consequences of not doing so could well be much worse publicity. Often, public relations advisers will, sensibly, advise openness, recognising the longer-term benefits. But no-one should be fooled into thinking that they are operating for wider altruistic reasons. They are serving their clients or bosses.
Read more

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We’re in NO DOUBT the ODT editor has chosen their words very carefully, but in so doing perhaps they should pause to reflect on their own production of what constitutes local news in the Southern Region. We use the plural.

And here’s the thing, it’s hard for the ‘average reader’ to work out who is ‘speaking’ in each of the newspaper’s editorials these days, since there’s a discernible movement and variance of principle, voice and direction, or so it appears.

The anonymity of the editor – or the actions and beliefs of the team producing editorial material – erodes believability and reader confidence; in much the same way as when the newspaper’s ownership comes to bear (do we detect?) on the printed editorial stance.

‘Open communication’ is the headline. It’s something we expect from the independent newspaper, owing to the less than edifying antics and misdeeds that riddle city power structures and business, tied to in-your-face indiscriminate spending of public funds for little or no perceptible public gain.

In an effective democracy, and particularly when public money at stake, however, transparency should be fundamental. Not only does this diminish the opportunity for the cancer of corruption, but it also – as noted last week by the Law Commission in its report on the Official Information Act – promotes accountability. -ODT

ODT itself should be in no doubt that if it wants to play ‘dumb blonde’ or ‘dull brunette’ then the community’s quest for transparency, exposure and lack of newspaper bias will simply change gear – we’ll slip quietly to other news sources for the information we seek, some published, some underground. Motivated people get what they need, where they can. The work-arounds: internet and web sources are all-powerful for constant/instant messaging and exchange of visual data. The underground news economy.

The newspaper – while the physical paper appeals to the eye and hand – is ‘maybe’ something we’ll continue to buy, as a habit. For the most part, Southern news (and morality) is coming to us via social networking services, phone calls and person-to-person meetings – it’s fast and unabridged. People are taking charge of their information sharing. It’s exciting, it’s risky, it works for good and bad. It’s addictive.

We know that lumbering institutions have trouble sending the ‘real news’ by official means – there’s a lot to hide, wheelings, dealings, and slights.

Watch the silence of city councillors. Most are scared of communicating with their constituents by media; god forbid that social media should come between them and their council paychecks or, for some at least, the kickbacks and advantages received from private interests to propel decisions through council committee and departmental processes.

It’s a small world and the Otago Daily Times could adopt a neutral independent newspaper stance to capture most of the undercurrents. Does it? No. Especially not, if when things get too close.

Why are letters to the editor not printed? Why are online comments deleted, rewritten or abridged without explanation on certain topics? Frankly, it’s not all about bad grammar or actionable comments.

Most of the time we’re allowed to read ‘what is safe’, things guaranteed to not upset the Applecart of Order established by the Otago Daily Times in conjunction with (we suspect…) Dunedin City Council and the old boy networks. Intelligent networked people watch for what’s NOT being printed by the patriarchy.

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The Catholic Bishop of Dunedin has come out as a misogynist… that ODT won’t allow comments at the online post in the interests of widening the debate for female and male subscribers is a sad indictment on the newspaper. Loudly, it shows the inability of All to participate in ‘open communication’ through the newspaper at yet another critical moment for the great ink-blackened unwashed.

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Related Post:
28.7.12 Pokie fraud: ODT fails to notice own backyard

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Posted by Elizabeth Kerr

What’s Syd really up to at DCC, given the history, forgetting Cull

Haha, Syd’s preaching there’s a lot in it for Dunedin if offshore drilling for oil and gas proceeds. We would say, matter-of-factly, only a minor few businessmen will ‘profiteer’, the rest of us won’t see a cent, ever. He’s a simple guy. It’s more about who he knows and how he can be used by them. He’s THE ONE to force out of Council in 2013, IF he decides to stand again. His age is working against him plus he’s got the Taieri subdivisions to keep him busy. Dependably, the mob will find someone to fill his boots. Like nothing happened.

[However, What if? troops, fact-finding has never been so much fun.]

Cr Syd Brown, chairman of the Dunedin City Council’s finance, strategy and development committee, said it did not matter when drilling occurred, and the “real positive” was Dunedin remained on the company’s radar. “It’s really a matter of when it does happen that we make every post a winner, so that that opportunity can be spread over the economy of Dunedin.”

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### ODT Online Thu, 2 Aug 2012
Oil drilling off Oamaru postponed
By Chris Morris and Simon Hartley
Dunedin remains in the running to become an oil base, despite the decision by oil giant Anadarko Petroleum to delay bringing a drilling rig into southern waters, a Dunedin city councillor says. It was confirmed yesterday Anadarko had deferred bringing a rig to the Canterbury Basin, offshore from Oamaru, until the summer of 2013. The company had planned to start drilling off the coasts of Raglan, Canterbury and Otago last summer, but that was delayed to October this year because of a global shortage of rigs. Yesterday’s news of a further delay prompted mixed reactions in Dunedin, which could benefit from becoming an oil base if drilling proceeded.
Read more

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Related Post and Comments:
28.7.12 Pokie fraud: ODT fails to notice own backyard

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Posted by Elizabeth Kerr