DVML and ORFU refuse to disclose 2012 Otago Rugby deal

Terry Davies [re-imaged screenshot - youtube.com] 1
Dunedin Venues chief executive Terry Davies was asked to release details of the “Otago Rugby deal” struck in 2012 as part of the Otago Rugby Football Union recovery package.

Surprise! Mr Davies and ORFU don’t want you to know how much DVML pays ORFU for each rugby game played at Forsyth Barr Stadium, and given DVML is struggling to meet the sponsorship commitment (see previous post). Worse, DVML keeps paying even though ORFU is now flush with funds.

Just how are these payments passing through Council-owned books? The money comes from your rates; piling on top of every other subsidy DCC is gifting to the stadium and professional rugby.

The 2012 deal involved David Davies, the previous DVML chief executive. Who else was involved at ORFU, NZRU and DCC? Was the Mayor of Dunedin Dave Cull a signatory? More to come.

Correspondence received from Bev Butler
Fri, 12 Sep 2014 at 2:38 p.m.

Message: They really don’t want any part of this agreement out.

From: Terry Davies [DVML]
To: Bev Butler
Subject: LGOIMA request: DVML/ORFU venue hire agreement
Date: Wed, 10 Sep 2014 22:28:54 +0000

Dear Bev

Please find attached a response to your email request dated 27 August 2014 as per below. A copy has been posted to you today.

Yours faithfully
Terry Davies [DVML]

From: Bev Butler
Date: 27 August 2014 10:08:59 am NZST
To: Terry Davies [DVML]
Subject: RE: LGOIMA request: DVML/ORFU venue hire agreement

Thanks, Terry.
I would still appreciate a redacted copy of the agreement.
Thank you.

From: Terry Davies [DVML]
To: Bev Butler
Subject: FW: LGOIMA request: DVML/ORFU venue hire agreement
Date: Tue, 26 Aug 2014 04:19:21 +0000
Dear Bev

Thank you for your email below. Please find attached the response which has also been posted to you.

Yours faithfully

[Terry Davies, DVML]

From: Bev Butler
Sent: Monday, 28 July 2014 9:01 a.m.
To: Terry Davies [DVML]
Cc: Sandy Graham [DCC]
Subject: LGOIMA request: DVML/ORFU venue hire agreement

Dear Terry

In 2012 DVML signed a venue hire agreement with the ORFU. I request the following:

1. The date of this agreement;
2. The names of the signatories on the agreement;
3. A copy of this agreement.

Thank you.

Yours sincerely
Bev Butler

Letter from DVML to Bev Butler 11.09.14

█ Download: Letter to Bev Butler 11.09.14 (PDF, 49.4 KB)

Related Posts and Comments:
8.9.14 Jim Harland and the stadium MESS
● 1.8.14 DVML and the “Otago Rugby” deal (sponsorship and payments)
15.7.14 Stadium: Who is being protected?
24.6.14 Stadium: DVML, mothballing, and ‘those TVs’ #LGOIMA
18.6.14 Crowe Horwath Report (May 2014) – Review of DVML Expenses
9.6.14 DVML: Crowe Horwath audit report (Hedderwick)
2.6.14 Stadium costs ballpark at $21.337 million pa, Butler & Oaten
23.5.14 Stadium | DCC Draft Annual Plan 2014/15 ● Benson-Pope…
11.5.14 Stadium: DCC proposes extra funds for stadium debt repayment
9.5.14 DCC Draft Annual Plan 2014/15 Submission by Bev Butler
10.4.14 Stadium: Edgar’s $1m donation (private sector fundraising)
3.4.14 DVML: Lost in transaction II (flatscreen TVs)
22.3.14 DVML, ‘Money for jam…..fig jam’
19.3.14 ORFU: Black-tie dinner, theft or fraud?
17.3.14 ORFU: Black-tie dinner on ratepayers
15.3.14 Mayoral DISGRACE: DCC won’t ask ORFU to repay $480K bailout
14.3.14 ORFU flush to pay creditors
4.3.14 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)
7.9.13 Stadium: $266 million, more or less?
30.7.13 Stadium: Accountability, paper trail leads unavoidably to NEWS
4.7.13 Carisbrook: DCC losses
15.2.13 Carisbrook: Call for OAG investigation into DCC / ORFU deals

Posted by Elizabeth Kerr

*Image: whatifdunedin – re-imaged screenshot from YouTube clip, Terry Davies press conference regarding streaker (ODT 15.6.14)


Filed under Business, DCC, Democracy, DVML, Economics, Highlanders, Name, New Zealand, NZRU, ORFU, People, Pics, Politics, Project management, Property, Site, Sport, Stadiums

3 responses to “DVML and ORFU refuse to disclose 2012 Otago Rugby deal

  1. Let’s have a look at Terry Davies’ response:

    He says that Bev’s request has been considered and the decision was made to withold the copy of the agreement even in a redacted form. Under section 7 (2) (c) (i) of the LGOIMA, disclosing the information would breach an obligation of confidence and where making the information public would likely prejudice the supply of similar information.

    He also witholds the information, pursuant to section 7 (2) (ii) of LGOMIA to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information. The information is also witheld pursuant to section 7 (2) (i) of LGOMIA to enable DVML to carry out without prejudice or disadvantage, ongoing negotions with the ORFU.

    He also considered whether any public interest in this agreement overrides the public interest in DVML and the ORFU being able to carry out commercial activities around the use of the stadium by the ORFU. Following consideration, and in consultation with the ORFU, it is our view, that at this time, the reasons for witholding this information outweigh any public interest in the release (in full or in a redacted format) of the document.

    Firstly, let us establish DVML’s position. It is a body set up by the stadium owner, the DCC, to manage the operation of the stadium on behalf of that body, and by extension, the shareholders (the citizen ratepayers). It is not its function to enter into clandestine arrangements with any party which may be detrimental to the viability of the shareholders’ interests.

    The claim that any disclosure may breach an obligation of confidence and be prejudicial to the other party, is at best spurious and unsustainable.

    The position is quite transparent in as much as there is only the ORFU and DVML involved. The stadium is the only venue in Otago fit to meet all the requirements of the ORFU. There is no other choice for either party. As there is no competitive alternative, there is equally no compelling reason why the information should not be revealed to the shareholders, in order for them to be aware of the financial performance of the stadium.

    There would not appear to be any disadvantage to the ORFU in the public knowing of the deal’s details relevant to its activities’ commercial prospects, other than if the deal was biased towards the ORFU’s interests at the expense of the owners’ interests.

    I feel strongly that as Mr Davies seems determined to continue to frustrate the interests of the public it ought to be put to the Ombudsman as the People’s advocate.

    Only then will justice and transparency be seen to be done.

  2. Simon

    Please note. Community Events Funding in today’s ODT.
    ORFU $33,469.92
    When will these leaches stop draining the ratepayers pockets ?
    Just how do these a—holes qualify for community funding, when they cannot pay their bills for that black tie event.

    • Elizabeth

      We don’t know whether it’s for amateur rugby or not (probably!!). Best do a LGOIMA.

      ODT 2.6.15 (page 5)

      ODT 2.6.15 DunedinVenues ComFund ORFU p5

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