DCHL, long wait for review (Larsen sighs)

From the good old days when ODT had a rival media outlet, remember this?
Since then (2011), has anything changed much? Waiting.

“The information regarding the funding shortfall from DCHL to council was not communicated to council in a timely manner (which) indicates seriously inadequate communication mechanisms,” Cull said. (Stuff)

### stuff.co.nz Last updated 18:39 29/07/2011
Financial crisis for Dunedin City Council
By Mike Houlahan and Wilma McCorkindale
Dunedin City Council is facing a financial crisis, with two internal reviews warning it faces a $8 million revenue shortfall. Dunedin Mayor Mayor Dave Cull was an angry man when breaking the news, saying “hard choices” would probably need to be made to rescue the city’s financial position.
At the heart of the city’s fiscal problem lies projected revenues from Dunedin City Holdings Limited – the council’s holding company, which oversees firms such as City Forests Ltd, Delta Utility Services and Aurora Energy Ltd.
DCHL has already had to borrow to deliver projected revenues to council. Cull warned that DCHL could become insolvent within a few years if it continued to pay council what was budgeted.
Read more

****

Here we are (2013). The shake-up at DCHL – new chairman, new directors – and indeed, new (DCC) councillors, new chief executive, new group chief financial officer, DELAYS the release of DCHL’s report due in July until the end of year… in time for council budget meetings in January. As the ‘too hard’ baskets go, Waiting.

### ODT Online Fri, 8 Nov 2013
DCHL report further delayed
By Chris Morris
Turnover at the top has again delayed a review of the Dunedin City Council’s group of companies, but the wait could soon be over, Dunedin City Holdings Ltd chairman Graham Crombie says. Mr Crombie told the Otago Daily Times the report – presenting the risk profile and options facing each of DCHL’s subsidiary companies – was likely to be ready for councillors by the end of the year.
Read more

Warren Larsen Report (February 2012) (PDF, 3.9 MB)
Governance review of all companies in which Dunedin City Council and/or Dunedin City Holdings Limited has an equity interest of 50% or more.

Related Posts and Comments:
23.8.13 New DCHL Chair announced: Graham Crombie
24.7.13 DCC / DCHL shake up !!!
12.7.13 Hudson, DCC (ex DCHL)
7.7.13 DCHL changes lack transparency —where’s the report, Shale?
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
13.8.11 Ridding DCHL of conflicts of interest, Otago business monopoly…

For more, enter *dchl* or *dcc* in the search box at right.

Posted by Elizabeth Kerr

6 Comments

Filed under Stadiums

6 responses to “DCHL, long wait for review (Larsen sighs)

  1. Liability Cull’s council lack transparency and accountability… always bound for ‘off the record’ it seems!

    ### ODT Online Tue, 10 Dec 2013
    Fee debate in private
    By Chris Morris
    Debate over the amount of money allocated for Dunedin City Council company directors’ fees was deemed non-public at the last minute yesterday. A proposal to allocate $785,879 for directors’ fees – spread across the council’s group of companies – was expected to be debated in the public part of yesterday’s full council meeting. However, that changed when Cr Kate Wilson warned holding the debate in public would prevent her from raising related issues that had first been discussed in previous non-public council sessions.
    Read more

    Report – Council – 09/12/2013 (PDF, 278.9 KB)
    Directors Fees – DCHL Group for the Year Ending 30 September 2014

  2. I guess it is not unreasonable that councillors don’t want plain median income folk to be aware of the “trough” position in this city. After all. there is a huge number of people one way or another with their front ‘trotters’ well and truly planted in these troughs (yes, there are many of them) who would ‘squeal’ and ‘oink’ loudly if they were to be deprived. The really sad part is that they don’t even produce good bacon, just get ‘obnoxiously’ demanding.

  3. Dunedin City Council – Media Release
    Dunedin City Holdings Limited Half Year Result to 31 December 2013

    This item was published on 21 Feb 2014

    The Dunedin City Holdings group is reporting an improved profit after tax and higher operating cashflows in its half year result, compared to the same period last year. For the six months to 31 December 2013, total revenue decreased by 2%, to $122.6 million. However, revenue for continuing operations has increased 8%, from $110.4 million to $119.2 million. The profit after tax has increased 9% to $8.7 million from $7.9 million for the same period last year.

    Cashflows generated by the operations of the group were $2.4 million higher at $21.7 million for the six-month period. This factor, combined with the sale of surplus assets and less spending on capital items, has allowed the group to reduce its term borrowings by $19 million.

    Dunedin City Holdings Limited Chairman Graham Crombie says, “It is pleasing to be able to report a continuation of the improvement in the financial performance of the group. In addition, there has been a conscious effort to improve the cashflow across the group and this has also paid off. This has resulted in a reduction in term borrowings.”

    A better financial performance came from City Forests Limited as the prices received for logs have remained strong. This was also assisted by an improvement in the performance of Delta Utility Services Limited.

    Aurora Energy Limited has been adversely affected by the mild winter last year. This had an impact on its operating revenue and surplus.

    Taieri Gorge Railway Limited is performing slightly worse than at the same time last year. It continues to be impacted by a weak tourism market in the South Island. The cruise ship market is also weaker this year and the cancellation of a number of ships due to weather conditions has had an impact.

    Dunedin International Airport Limited profit was down compared to last year. The reduction in airline capacity across both domestic and international services for the period had an impact on the aeronautical revenue of the company.

    Dunedin Venues Limited and Dunedin Venues Management Limited do not form part of the Dunedin City Holdings reporting group. Their results, however, have also been released for the six-month period.

    Dunedin Venues Ltd trading was very close to its result for the same period last year. For Dunedin Venues Management Ltd, revenue was up and the $475,000 loss was slightly less than last year.

    Note: The Dunedin City Council owns Dunedin City Holdings Ltd, which in turn owns five subsidiary companies:

    ● Aurora Energy Ltd
    ● Delta Utility Services Ltd
    ● City Forests Ltd
    ● Dunedin City Treasury Ltd
    ● Taieri Gorge Railway Ltd

    and a 50% share in Dunedin International Airport Ltd.

    Dunedin Venues Management Ltd and Dunedin Venues Ltd are owned directly by the DCC, but a governance arrangement has been entered into with Dunedin City Holdings Ltd.

    Contact Chairman Dunedin City Holdings Limited on 03 477 4000.

    DCC Link

  4. Reports tabled at the meeting of Dunedin City Council on 24 February 2014:

    Report – Council – 24/02/2014 (PDF, 47.8 KB)
    Statements of Intent – DCHL Group Plus DVL and DVML

    Report – Council – 24/02/2014 (PDF, 617.3 KB)
    DCHL Financials for the Six Months Ended 31 December 2013

    Report – Council – 24/02/2014 (PDF, 354.0 KB)
    Statements of Intent – Dunedin City Holdings Ltd

    Other reports

  5. Elizabeth

    ### ODT Online Wed, 6 Aug 2014
    Airport cash cow
    By Vaughan Elder
    The white gold is flowing at Dunedin International Airport, with its dairying operation contributing a record amount to its bottom line in the past financial year. Airport chief executive John McCall said 550-600 cows were run on two stretches of airport-owned land either side of the runway Profit from the cows represented a significant slice of the airport’s overall turnover.
    Read more

  6. Elizabeth

    Taieri Gorge Railway Ltd (see DCHL)

    Removed from another thread. Moderated, with link added. Your comment at the Facebook page appears to have been removed. -Eds

    Rikki Lind
    Submitted on 2014/09/03 at 7:27 am

    From Facebook today. I sadly can’t seem to paste the advertisement graphic for the Taieri George Train Excursion that we are paying for as ratepayers. [ https://www.facebook.com/TaieriGorgeRailway/photos/a.10150298046005917.379429.182396405916/10152722122275917/?type=1 ] Text as follows. My comment last.

    Wow…
    Want a trip down memory lane? Or fancy a trip to Invercargill at a fancy price? Coming to a town near you (if you live in Dunedin that is) a trip on the train to Invercargill and back at a very tempting price. I am even tempted myself!!!! Jump on the net and make yourself a booking or call us on 477 4449 for a booking. Get in quick – this is too cheap to miss out on.
    Taieri Gorge Railway
    Like · · Share

    Rikki Lind Nice to see what some can afford. I don’t even have $30 for food most weeks…. I guess someone in the DCC is behind this?? Ps I would like to buy a second hand railway carriage cheap?? […]
    Like · Reply · 9 mins

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