Daily Archives: October 30, 2012

NZIER on big events #RWC2011

When a new stadium and RWC 2011 at Dunedin were first floated as ideas we easily saw them as losers.

### ODT Online Tue, 30 Oct 2012
Business
Big events don’t make host countries richer: NZIER
By Jamie Gray
Big events like the Rugby World Cup do not make the host countries richer, independent economic research group NZIER said. NZIER said major international events tended to “suck in” visitors from before and after the time they are held, creating a displacement effect. It said most event analysis doesn’t stack up because it missed the displacement effects. “It means the benefits are often far smaller than people think,” NZIER said in a report. The displacement effect meant the net number of visitors an event generates is much lower than the visitors to the event, and NZIER said the Rugby World Cup 2011 was a good example of this. “We estimate there was little overall boost to visitor arrivals because there were fewer visitors before and after the 133,000 international visitors that came to New Zealand for the tournament,” it said. “Crucially, domestic tourism is displaced expenditure that would occur elsewhere in the economy. This significantly reduces the overall benefit from the events. Simply put, major domestic events do not make New Zealanders any wealthier.”
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NZIER – established in 1958 as the New Zealand Institute of Economic Research Inc – is a non-profit incorporated society based in Wellington. Its team of economists is one of the largest in New Zealand outside government.

http://nzier.org.nz/publications

Report: The host with the most? Rethinking the costs and benefits of hosting major events (30 October 2012)

Posted by Elizabeth Kerr

1 Comment

Filed under Architecture, Business, Construction, CST, DCC, DVML, Economics, Events, Geography, Media, Name, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, Town planning, Urban design

DCHL ‘run by a bunch of fools’ -agreed

Comment received.

JimmyJones
Submitted on 2012/10/30 at 5:43 pm

DCHL is financially very sick: if it was a horse, you would have to shoot it to put it out of its misery. It is amusing to see how sensitive Dave Cull is to Lee Vandervis stating-the-bloody-obvious, that DCHL doesn’t make enough real money to pay its interest and dividends to the DCC, as well as the subsidies to DVL and DVML.
The DCC are forcing DCHL into more and more debt every year. For the 5 years that I have Annual Reports, DCHL has always paid for its distributions to the DCC by increasing their debt. Not just part of the distributions are borrowed money, but the whole amount each year.
In 2012 they added $50.3 million to their debt (page 37), so you can see that even without being forced to provide distributions of $23.2 million, it already had a severe cash-flow shortage. This negative cash-flow is the result of their own incompetence from spending very large amounts on new investments and expanding their operations. The incompetence comes from the fact that there has been no expansion in profits as a result of this low quality spending. They seem to be followers of the Homer Principle (if something doesn’t work, keep doing it), because not once in the last five years have they earned enough cash to pay for their spending on new stuff. Poor-old Dave and the new-guy, Paul, don’t seem to understand the problem. Let me summarize –

● DCHL is heading towards bankruptcy
● It is going bankrupt because DCC councillors and staff have been using it like a magic money-box where distributions are paid from debt (debt that doesn’t show up on DCC books – because of their choice)
● The LTP shows that they fully intend to continue this foolish practice, despite the DCHL Chairman’s aspirational comments to the contrary and Mayor Cull foaming at the mouth about it
● DCHL has been, and mostly still is, being run by a bunch of fools that need to be kept well away from anything financial or owned by the People Of Dunedin.

### ODT Online Tue, 30 Oct 2012
Mayor sees red over Vandervis questions
By Chris Morris
Sparks flew as Mayor Dave Cull and Cr Lee Vandervis clashed repeatedly over debt and dividends at yesterday’s Dunedin City Council meeting. In what at times resembled a running battle, an angry Mr Cull eventually accused Cr Vandervis of giving in to his “obsession” and threatened to prevent him from speaking. The pair found themselves at loggerheads over reports detailing Dunedin City Holdings Ltd’s latest financial results and the council’s annual report.[…]Cr Vandervis attacked the figures at yesterday’s meeting, claiming the entire $23.2 million – which helped keep council rates increases to a minimum – had been funded from loans.
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Related Posts and Comments:
29.10.12 DCC consolidated debt substantially more than $616m…
26.10.12 DCHL borrowed $23 million to bail DCC
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
25.10.12 Dunedin Venues Limited – 2012 Annual Report now 2 months overdue
17.10.12 The only thing up…. (for sale)
17.10.12 DCC on DCHL, subsidiaries and DCTL
12.10.12 DCHL, subsidiaries and DCTL
28.9.12 The End of The Golden Weather?
25.9.12 Cull’s state of denial…
24.9.12 DCC against imposition of local government reforms
11.9.12 Delta Utility Services Ltd
6.9.12 DCC pays out $millions to cover loss making stadium…
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
7.8.12 DCC, DCHL, debt, democracy (and professional rugby)
26.7.12 Cull’s council thinks $750,000 per annum to DVML…

Posted by Elizabeth Kerr

33 Comments

Filed under Stadiums

Stadium turf-day +@#!$%^*&

Tweet (9:28 AM – 30 Oct 12):

@ForBarrStadium #CommunityPitchInvasion Our turf is open to you this Sun (4 Nov) to enjoy & use as you would your local park, 2:30-4pm ow.ly/eRvP8

Does this mean the hallowed turf is completely poked?
While the pitch at Carisbrook is maintained to perfection…

Posted by Elizabeth Kerr

10 Comments

Filed under DVML, Events, Property, Site, Sport, Stadiums