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.
Read more

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

33 responses to “DCHL ‘run by a bunch of fools’ -agreed

  1. Anonymous

    Oh. Did you mean gum? That misunderstanding is probably making for an interesting discussion in the editor’s office at the Otago Daily Times presently. How can they get all media frenzy without bringing attention to this site? Should be a blast if they bite.

  2. amanda

    Golly. Dear Mayor Cull looks a bit out of control methinks. Looks like the Big Boys are throwing him under a bus with unflattering portrayals of our esteemed Mayor; who do you think Julian Smith would prefer to be the next new Mayor? Looks like ‘gormless but nice’ Cull is being put out to dry, with his face all red with anger. Not a good look. Who would be the preferred stadium lovin’ councilor muppet to take over? I have an idea that old Syd is the new muppet preferred by our city’s fiscal genius stakeholders and media; he’s weak like Cull but also totally on-board with the agenda of sucking as much out of Dunedin as possible into a few stakeholders’ hands. He will keep that agenda on the straight and narrow which is all stakeholders care about. The city’s Assets? Sold, to the Old Boy best mate who asks for them.

    • Elizabeth

      I hear Cr Sydney Brown has a succession plan in the making that would involve Cr Andrew Noone going fully over to the dark side. That’s not to say it’ll work. Watch this space.

  3. amanda

    I just posted in response to Jonkey’s very pertinent post to the ODT asking who is responsible for the stadium build, s/he has noted that, oddly, there is great difficulty finding this information (!). Funny that, huh? Here is my post just in case the dear old ORT doesn’t post it:

    Jonkey; You have got to the very heart of the matter. The seven councillors who voted for the stadium spend: Crs Acklin, Collins, Weatherall, Brown, Bezett, Noone and Hudson. They hold the majority on the present council. It is indeed very interesting that these councillors have been very quiet about their responsibility for the stadium and for its business plan. Important to note too that they were very shy about sharing their stadium support on the run up to the last local election and did not mention it. One wonders if they will be shy on the run up to next year’s local election? Since all seven are likely to want to be re-elected again next year. If they are not going to remind readers/voters who will? The media likewise seems to be suffering from amnesia when it comes to reminding readers who is responsible for the stadium build and resulting unsustainable debt.

    [sp -Eds]

  4. amanda

    It needs to be said again; these secret seven Hold the MAJORITY on Council. If we want a non corrupt council their cabal must be broken at next year’s election.

  5. Mike

    I wonder who will be retiring this year, my money’s certainly on Hudson, but I’m sure there will be more, maybe it’s just the right time to go and hunt for some post Guest scandal

  6. amanda

    oh and obviously Cull needs to go; his bending over to protect the reputations of stakeholders is getting beyond embarassing and entering corrupt territory.

  7. amanda

    We must send a message to the stadium cabal, Lesser Dunedin, lone wolf councillors and future wanna be councillors that corruption, crony capitalism and lack of transparency will not be tolerated by Dunedin people. Otherwise we will get more rats to replace the present rats on council; the same old same old. Local politiicans need to be reminded this is a democracy; you answer to the people when you are negligent and corrupt. Most sitting around that council table have forgotten this.

  8. amanda

    That message is sent through the ballot box; Let’s ‘cull’ Cull and the stadium cabal next year!

  9. Hype O'Thermia

    Hey guess what, the story that led the odt online http://www.odt.co.nz/news has disappeared now, displaced by Murder accused’s violent past revealed and NZ linked to huge cocaine bust and a nice feelgood one Acclaim from the world to Dunedin (Being able to enjoy Dunedin’s lifestyle while fielding calls from customers in New York or Belfast is something Ryan Baker finds “kind of cool”.) The big stadium story, the most important story today in my opinion since it makes plain the negative impact of all that extgravagance, is 2nd placed under the Dunedin section:
    # Hints of changes to land use
    The rules around what people can do with land in Dunedin are being reviewed.
    # Stadium finances dismay
    # Sandy as seen from the ‘bunker’
    # Peninsula speed limits going down

    How quickly can the stadium matter be swept under the carpet, I wonder.

    • Elizabeth

      Stadium story still being run upfront, ok less text emphasis, but see image bar below new headlines and above Dunedin news.

  10. Hype O'Thermia

    http://www.odt.co.nz/news/national/232715/blogger-appointed-truth-editor

    “He said the paper would focus on uncovering political dishonesty and scandal.
    “We’re going to keep the buggers honest. There’s no better disinfectant than sunlight.”

    Remember how the stadium was going to put Dunedin on the map? We’re there, mentioned in the media in connection with rates rises caused by cargo-cultish decisions i.e. the Fubar Stadium – and lest anyone forget, that’s a term that was used in the forces meaning Ffff’d Up Beyond All Recognition which is worse than your average SNAFU (Situation Normal, all Ffff’d Up) – and now it looks like there might be a new source keen to find stories behind spin, even way down here in the city the government’s rort-busters DIA couldn’t locate on the map.

    • Elizabeth

      Not sure @whaleoil is an answer to prayers of Dunedin’s magnitude or gaining redress for drycleaning that went wrong. Having followed the individual for some long while I consider Truth will fall over sooner than the National-led government. Kiwi bloggers and tweeters have their standards.

  11. Phil

    Sorry, Fliss, but “abstained” is the same as YES. You don’t abstain on a $300 million vote. You stand up and be counted.

    {Abstention possibly due to family architecture firm. -Eds}

  12. ormk

    Suspending all powers of the DCC and having a full commission seems like it might be necessary. It is hard to believe but it looks like they might be considering sinking more money into this project that will always be doomed for failure. They can’t be allowed to keep on borrowing.

  13. amanda

    In response to Jonkey’s bewilderment about the stadium councillors and attempts to hide them behind the rest of ‘the council’ I posted this to the ORT. As usual, just in case they don’t post it….
    The seven stadium councillors I mentioned voted for the stadium as well as the late ex Cr Walls, ex Cr Guest and ex Mayor Chin, making Chin’s council all for the stadium. Cr Guest and fellow stadium councillor said the stadium would be only $66 a year, and Cr Collins told us that any against the stadium were ‘glass half empty’ sort of people, similar to Cr Brown’s declaration that any against it were ‘naysayers’. They were the majority of ten councilors pushing very loudly for the stadium against the minority of Crs (then) Cull, Staynes, Wilson, Butcher and Stevenson. In the end of this minority only Cr Stevenson, I think, still stood up in the end to the writing on the wall. After the last election three stadium councillors (among all of them who became very shy about telling voters of their stadium support) were not re-elected and Vandervis and MacTavish were elected. Makes one wonder, isn’t it odd how we do not hear the stadium councillors who originally pushed for the stadium, crowing about their stadium vision? Politicians are not known for being shy about their support for popular public initiatives.

  14. amanda

    Ok. I forgot Cr Richard Thomson. He was also elected alongside MacTavish and Vandervis. He had a seemingly pragmatic approach to the stadium debt monster, as was the narrative that Greater Dunedin wanted to tell which all changed once he got around the council table and, of course, like Cull, is now a stadium debt lovin’ kinda guy.

    • Elizabeth

      In my view, each councillor past and present if not dead is LIABLE in a court of law.
      (some only look and sound dead, some have assets) Together with the ugly company directors – guilty.

    • Elizabeth

      Further to What if? and ODT Online queries about which councillors voted for the stadium – one hell of a lot of ‘lack of explanation’ regarding the two historical voting sessions.

      See old comment about it, with link:

      31.8.10 Opponents scrap over stadium vote
      http://www.odt.co.nz/news/dunedin/123723/opponents-scrap-over-stadium-vote

      “The minutes of the council meeting showed that vote was to commit to the stadium, but council governance manager Sandy Graham confirmed yesterday it was a procedural vote to confirm the resolutions taken, rather than a substantive vote.”

  15. ### ch9.co.nz March 1, 2013 – 6:44pm
    Dunedin City Holdings Group releases encouraging half year results
    The Dunedin City Holdings Group released some encouraging half year results today. The group achieved a better result in profit after tax and cash flow, compared to this time last year. And DVML Chief Executive, Darren Burden, was also on hand to provide some positive news about the stadium’s future.
    Video

  16. Always have trouble with their video not playing….

  17. Anonymous

    Now for something completely unexpected from Otago Daily Times: Significant cut in stadium losses; DCHL profit up. And nearly falls off chair laughing at Allied Press.

  18. “a $2 million payment to landlord, Dunedin Venues Ltd, for six months’ rental and a subvention payment from the council of $91,000 to cover interest on money advanced by the council,”

    And worse “It noted a potential annual event fund from the council would provide an excellent resource to attract more events”

  19. Hype O'Thermia

    “A potential annual event fund from the council” -I think they mean from ratepayers’ pockets don’t they? Because council is up to its nads in debt – oh dear, what nads? That’ll be the ones that, if they had a pair, would have stopped their limpdickery when the stadium’s people come around with the begging bowl.
    Yep. looks like there’ll be an annual event fund handed over. “Can we help you with you anything else, something for the weekend? You’d like fries with that?”

  20. Anonymous

    Anyone else notice an event held at the stadium is given significant emphasis for its location in the opening paragraphs of the Oddity while events held elsewhere usually get a general reference in the closing paragraphs? For example. That curious Armageddon Expo on this weekend with an estimated 6000 attending… Edgar Centre is in the third last paragraph.

    I would have thought 6000 was quite significant.

    ### ODT Online Sat, 2 Mar 2013
    Anime fan dresses up for the part
    By John Lewis
    Usually she’s just another Jane Bloggs, walking up the street to university lectures. But when Shannon Jackson (20) is in costume, she transforms into one of the most recognised faces on television. The University of Otago Japanese and linguistics student is one of an estimated 6000 people from around New Zealand who will dress up as their favourite sci-fi movie or cartoon character this weekend when they attend the Armageddon Expo in Dunedin.
    Read more

    (BTW – does anyone know who these ‘Jane Bloggs walking up the street to university’ are? Where do they come from? What do they look like? Maybe this is something Critic needs to investigate.)

  21. Anonymous

    Hang on, the Otago Home Show and the Armageddon Expo were both held at the Edgar Centre on the same weekend? Why is it that we built 2 Eion Edgar benefit venues again?

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