Aurora/Delta new directors

Dunedin City Council – Media Release
New directors appointed for Aurora and Delta boards

This item was published on 03 Jul 2017

Dunedin City Holdings Limited (DCHL) has appointed three new directors within its group as part of changes to the Aurora Energy and Delta Utility Services companies which take effect from today, Monday, 3 July. DCHL Board chair Graham Crombie says that Margaret Devlin and Brenden Hall have been appointed to the Aurora Board, while Steven Grave has been appointed to the Delta Board.

“There was strong interest in these vacancies, with a total of 80 applications received from throughout New Zealand and overseas. I’m delighted that we’ve been able to appoint three talented and experienced people to these roles.”

Mr Crombie says the board appointments have been made as a result of DCHL implementing one of the key recommendations from a Deloitte review of the companies’ network maintenance processes late last year. Deloitte recommended that Aurora and Delta should have different board members with no commonality of directors. As previously announced, current board members Steve Thompson and Dave Frow remain on the Aurora board only, with Mr Thompson as chair. Brian Wood and Trevor Kempton will remain on the Delta board only, with Mr Wood as transition chair. “The changes will see the companies fully separate with Aurora being the asset owning and management company, while Delta will revert to a contracting company. The skills required in each company from a governance perspective are different,” he says. “However, it is important that some continuity is maintained within the governance structures. The decision was therefore made early on to have two of the current directors move to each new board.” DCHL expects to make an appointment to fill the one remaining director vacancy on the Delta Board, within the coming weeks.

Director fees totalling $220,500 for Aurora and $204,000 for Delta, as recommended by an independent review by the Institute of Directors were approved by DCHL and endorsed by the Council. These fees compare to the current total fees for the combined companies of $258,250.

Contact DCHL Chair on 034774000 | Mobile: 0274363882
DCC Link

█ Media release – New directors appointed for Aurora and Delta boards
(PDF, 54.1 KB)

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The A/D directors forever joined at the hip think they can tough it out by collecting fees.

Both the non-retiring and the newbies appear grey around the gills, deadhead controlling and incapable of clean governance.

Larks, it appears Mr Crombie is staying on at DCHL. Not enough lawn mowing at Clyde to wobble his wattles.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

How to drop Crombie and the mafia from City boards

Or read, how the new city council will continue to undermine the Ratepayers and Residents of Dunedin, as well as the power consumers and district councils of Otago, just like before…. by allowing ill-considered (shoulder tap) appointments of a ‘class of morons’ to the boards of the City companies.

Troughers Unite.

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ODT 11.1.17 (page 4)

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Just beginning…. inquiries into council company rogues

Updated post
Thu, 29 Dec 2016 at 1:47 p.m.

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ODT 28.12.16 (page 12)

*smartphone tweak by whatifdunedin

****

THANK YOU LEAKS

Another demonstration, published via ODT today (see link below), of Lame Brains and Arrogance —Grady Cameron BULLSHIT and BLUSTER

Grady says !! “one of the largest construction projects in Otago during 2017” because…. since he was first appointed, Grady has COMPLETELY FAILED as chief executive of Delta and Aurora. Increasingly weak and witless. He is criminally negligent under New Zealand’s health and safety legislation. If WorkSafe tries to diminish that truth by applying the soft touch – there will be an Otago Riot.

As for Steve Thompson, given his latest offerings (and his past with Otago Rugby Football Union et al), he appears f’g clueless, a seller of hype, awesomely unfit to be (interim!) chairman of Aurora:

“Mr Thompson also told staff it was an “exciting” time to work for Delta…. “As a new chair and board we’re clear that the network needs modernising, that enough hasn’t been done in the past, that we’ll do more and faster in future.””

Modernising. Modernising.

One man dead.
Very little money at bank.

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Whistleblower Richard Healey questioned Mr Brosnan’s appointment, saying his background was in management, not engineering. Delta did not respond to a request for comment yesterday.

### ODT Online Thu, 29 Dec 2016
Director for $30m pole project
By Vaughan Elder
Lines company Aurora Energy has appointed a director to oversee its $30.25million pole replacement programme. Two memos sent to staff at Aurora’s sister company, Delta, before Christmas have been leaked to the Otago Daily Times. One is from chief executive Grady Cameron and the other from newly appointed chairman Steve Thompson. Mr Cameron outlined progress on the company’s accelerated plan to replace nearly 3000 poles in Aurora’s electricity network which is spread across Dunedin, Central Otago and the Queenstown Lakes area. […] Godfrey Brosnan had been appointed programme director and would report directly to Mr Cameron.
Read more

Not an auspicious start.

[More poles! Let’s pull in slave labour from overseas….. hmm maybe we don’t even have money for that…..]

Lots of legal clouds beginning to hover over Delta/Aurora HQ at 10 Halsey St – how long can Grady Cameron, Gary Johnson, Godfrey Brosnan and Steve Thompson keep their pay ?

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Images: newshub.co.nz – Grady Cameron | 10 Halsey St (web image) tweaked by whatifdunedin

Christmas Lights Displays #Dunedin

[while the power is on, thanks Delta….]
Christmas Lights Displays you can visit at Dunedin
via ODT’s Dave Cannan at The Wash (29.11.16):

68 Campbells Rd, 79 Rudd Rd, 62 Salmond St, 17 Hastings St, 1 Ipswich St, 1 Isadore Rd, 2 Braeside, 6 Forth St, 4 Doon St, 15 William James Cl, 10 Cavan Pl, 26 Gladstone Rd Nth, 21 Shipka St, 503 South Rd, 1 Centennial Rd, 9 Flower St, 6 Alfred Pl, 19 Magdala St, 20 Magdala St, 3 Nelson St, 103 Richardson St, 4 Roy Cres, 8 Viscount Rd.

█ See map published at this page: https://www.facebook.com/groups/DunedinXmasLights

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Posted by Elizabeth Kerr

This post is offered in the public interest.

What GIVES : Aurora/Delta/DCHL/DCC ?? Energy Safety/WorkSafe ?? ComCom ??

Due process and natural justice demand a different outcome in the Delta/Aurora case, writes Robert Hamlin. (ODT)

### ODT Online Thu, 22 Dec 2016
Rotten process needs fixing, too
By Rob Hamlin
OPINION Employment law is a minefield, which only those who assiduously apply due process can navigate. After the publication of the damning report by Deloitte, there have been calls in this community and this newspaper for Grady Cameron, the CEO of Delta, to be removed. Any lawyer will tell you that even with this report in hand, there will be a procedure to be followed before any such removal can occur. […] Enough time has now elapsed since the Deloitte report was published for the boards of Delta and DCHL along with the DCC to make their intentions clear to the community.
Read more

● Robert Hamlin is a senior lecturer at University of Otago Department of Marketing, commenting in a personal capacity.

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Comments at What if? Dunedin:

russandbev
2016/12/22 at 11:45 am
Of course the Dunedin Mayor, DCHL, Aurora and Delta will always say that the network is “safe” because once they admit to it NOT being safe then they are liable. Actually that raises an interesting issue. My understanding is that if an officer of the Council is aware, or made aware, of an unsafe environment or practice on or around any Council property – and that includes roadways, pathways, parks etc and does nothing about it, then that officer is personally liable for any subsequent issue. Surely Cull, as an officer, is now aware through his much delayed meeting with Richard Healey that the network is unsafe. He only needs to read the ODT to learn of the continued failures if he still can’t bring himself to accept the truth from Mr Healey. Why then is Cull not being pursued by Energy Safety or WorkSafe or the DCC internal Health and Safety personnel?

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Alex Brown
2016/12/22 at 12:39 pm

Click to access leadership-sme-guide.pdf

Page 2 Directors Duties – “ensure company has appropriate resources and processes to eliminate or minimise those risks and uses them”
Prioritising funds for a sports stadium would not be a defence.
Ask any small business (easy target) slapped with instant fines for incorrect scaffold or any commercial truck driver who receive huge fines for safety issues.
If ever the law should be applied it is in this case. WorkSafe needs to send a clear message to troughers who love sitting on boards under the safety of Council always backed up by the ratepayer.

Alex Brown
2016/12/22 at 12:51 pm
Penalty for the Directors – 5 years imprisonment, $600k fine.
So our lawmakers also intended it be taken very seriously.

█ For more, enter the terms *aurora*, *delta*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: googlesnipers.org – topsecret1

DCHL/Aurora/Delta unravelling

Garrick Tremain – 15 Dec 2016

****

Received from Lee Vandervis
Thu, 15 Dec 2016 7:43 a.m.

From: Graeme Jeffery
Date: Wednesday, 14 December 2016 7:41 pm
To: Aaron Hawkins; Christine Garey; Doug Hall; Marie Laufiso; Mike Lord; Jim O’Malley; Sue Bidrose; Damian Newell; Chris Staynes; Conrad Stedman; Andrew Whiley; Kate Wilson, Mayor Dave Cull
Subject: Re: Delta Milking

Dear Councillors, I was pleased to see Richard Healey was vindicated in his claims about the crisis facing Delta and Aurora. I, however, was disturbed to see the appointment of another accountant, Steve Thompson, onto the board. Part of the problem with the pole replacement program was that for some time an accountant was running it. We need engineers on the board not accountants as the problem here is health and safety and the integrity of the network not financial systems. I was not however surprised to see Thompson on the board and read he is backing Cameron. After all, the company he works for is Deloitte and it awarded Cameron ‘Young CEO of the Year’. What is hard to understand is how Thompson could claim that Cameron has done a good job in difficult circumstances when most of those circumstances were Cameron and the Boards’ own doing. Does he mean, for example, the millions he lost on subdivisions in Luggate, [Jacks Point] and Christchurch or perhaps the fact that he was the first CEO in living memory to lose money in a financial year. Maybe he meant the 20 roading redundancies, 40 in Christchurch, 15 in Alex, a further 50 in Dunedin at Civil, and another 10 in Greenspace this year. A grand total of 150 good people that Cameron sent down the road. Or were those difficult circumstances the investigations he is or has been under by the Audit Office, WorkSafe, Energy Safety, the Commerce Commission, the [Central Otago] District Council, the Queenstown [Lakes] District Council and then Deloitte. Perhaps it was the hundreds of thousands he spent on relocating offices and his failed re-branding or the fact that he and his deputy Ballard have surrounded themselves with people not competent to do the jobs they are assigned to. Or was it maybe the death and at least 5 serious injuries that have happened on his watch? Maybe it was the destruction of asset management systems and his failure to implement inspections such as link boxes, MDI boxes, air break switches and high voltage switch gear that he has knowingly overseen.
Perhaps those difficult circumstances were driving out good people such as Jarrod Stuart who was to oversee the pole replacement program but could no longer work under interfering, incompetent leadership. Or was he worried that he has now appointed a person with no knowledge of electricity networks to run the pole replacement program after realising how his previous appointment of an accountant to do this went so wrong. Maybe he was worried that his minions have been altering the input into the xivic analysis of pole structures so he could claim to have less red tag poles in the system. Or was it really just his utter failure to carry out what was needed when he did the LineTech Report in 2010 which required 1200 poles replaced per year for ten years and the worry that he may [be] and was found out ? Maybe it’s been difficult for poor Grady in the 2 months since he announced the accelerated pole replacement program that he supposedly planned in April [being that] he hasn’t replaced one extra pole. That puts him 140 behind schedule already. Nothing new there. No perhaps it was the fact that he has destroyed morale and goodwill among staff at Delta and is now considered no more than a laughing stock?
Surely the council can see why Richard Healey said it was ‘mind boggling’ that Thompson backed Cameron and his deputy Ballard. Quite frankly it doesn’t say much for the new chairman of the board when he is supporting somebody clearly not fit to run the company. How can any sane person possibly support this man and his so called executive leadership team. I know very few staff at Delta do. It is completely wrong to suggest, as some councillors have, that it doesn’t matter whether Cameron stays or goes, as he has been responsible for the day to day running of the company and his reports to the board and vice versa have clearly been misguided and deficient. Not only that, no-one at Delta can move on or start the huge task ahead, safely or efficiently with the dark clouds of Cameron and co hovering over their heads. After all, Crombie and Mr Benson-Pope said heads should role if the allegations proved correct. They have. Remember safety was the primary motive for Richard exposing what was happening at Delta and Cameron has been shown to be part of this disgrace (eg LineTech Report).

What is truly sad, is that all this was preventable, as many people have told the councils and the boards over the years this was going to happen. As I have said before this was raised to the then mayor (Sukhi Turner), the board and an MP as early as 1998 but the old boys network closed around her and us, just as they may appear to be doing now. It is time we learnt that you need engineers, some more engineers and then more engineers to run these systems and drop the accountants, and lawyers, who are neither qualified or competent to run an organisation of this type and size, when it is facing the biggest infrastructural project in Otago for next year and beyond. PS, The views of many of the councillors who represent the interest of the ratepayers and owners of the asset have been frighteningly absent through this. Have they left the country, are scared or just not interested. Cheers Graeme (Unhappy ratepayer)

——– Forwarded Message ——–
Subject: Delta Milking
Date: Sun, 4 Dec 2016 22:15:38 +1300
From: Graeme Jeffery

To: Aaron Hawkins; Christine Garey; David Benson-Pope; Doug Hall; Marie Laufiso; Mike Lord; Jim O’Malley; Sue Bidrose; Damian Newell; Chris Staynes; Conrad Stedman; Andrew Whiley; Kate Wilson, Mayor Dave Cull

Dear Councillors, I was extremely disturbed to see from the mayor, that the report from Deloitte into public and worker safety and the management of the network may not be made public. Remember this report was to look into management and not on their behalf. The safety of workers and staff is paramount and commercial sensitivity being used as an excuse to censor from public view is inexcusable. Pole replacements, switchgear, transformers, potheads, lines down etc are not let out for contract so commercial sensitivity has no bearing – I fail to see any valid reason why the entire report can’t be made public considering the level of public and worker interest. Remember, you are answerable to the public and ratepayers first and then the board and management are answerable to you, not the other way round which keeping this secret would suggest. We who work on and the owners of the network surely should have the report before us first and the board and management after that. The tail is clearly wagging the dog here. Delta has had at least 5 serious injuries and one death since Cameron took over and Delta has been complicit in at least 2 of the injuries and the death. Roger Steel left behind a widow. How many more women must weep and families like mine worry while the council worries about “commercial sensitivity”, and puts the public’s interests behind the interests of the Delta board and management.
Cameron commissioned a report by LineTech in 2010 that showed he needed to replace 12,773 poles in Dunedin alone (32,406 in total with Central) in the next 10 years to keep the network safe. He and the board have replaced way less than 3,000 in Dunedin in that time. A blind eye or incompetent. Both I’d say. Also the report said inspections, increases in cables maintenance, replacement and equipment had not been adequate, yet I can assure you these have not been stepped up at all, in fact some of these things have stopped all together. For the record, at the recent meeting of Delta staff less than 15 people out of a hundred voted to have a committee and release a joint statement to the media. There was not a No vote taken. A vote of no confidence was proposed but again no vote was taken. I hope there was no confusion that this was a unanimous or popular decision by the workers to support the joint statement. Around 85 of the hundred there didn’t endorse it. Personally I would be disgusted and lose all faith in due process and democracy if this report isn’t released in full and the true owners, the ratepayers, aren’t informed [of] what’s been happening. It may appear to Delta staff and ratepayers alike that the old boys network is closing in on the council and mayor. Remember, you the councillors are answerable first and foremost to the asset owners, the ratepayers, and not the Delta board and management.

[ends]

28.10.16 ODT: Criticism for Cull on poles approach
Whistleblower Richard Healey and Delta staff member Graeme Jeffery were yesterday highly critical of Mr Cull’s response and questioned why he had not yet condemned Delta and Aurora for their health and safety failures.

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I-Know-Nothing Stuart McLauchlan has no Get Out Of Jail Free card

● McLauchlan was appointed to the Aurora/Delta Boards on 1 June 2007.

Aurora Energy Ltd http://www.companies.govt.nz/co/471661
Delta Utility Services Ltd http://www.companies.govt.nz/co/453486

● McLauchlan served on the Board of Dunedin City Holdings Ltd from 1 June 2007 to 31 October 2011.

Dunedin City Holdings Ltd http://www.companies.govt.nz/co/559098

● McLauchlan ended his stint as Highlanders Board chairman in October 2009. He was appointed in 2004 by NZRU.

As a mere accountant and ‘professional’ receiver of (many sets of) directors fees, Mr McLauchlan is completely out of his depth in regards to property development and subdivision practices per se, however friends and colleagues found themselves assisted towards advantageous pricing of ‘stadium land’. Mr McLauchlan is renowned for having been in the thick of Delta’s ‘lightly investigated’ loss-making Luggate and Jacks Point property speculations. Contemporaneously, Mr McLauchlan and ‘friends’ were behind Delta’s buy-in to the then illegal subdivision at Noble Yaldhurst, Christchurch. That subdivision is set to lose Dunedin ratepayers further millions while bank rolling, once again, certain male protagonists.

We’re not sorry that Mr McLauchlan must take what is coming.

Thu, 15 Dec 2016
Stadium hurt renewal plans – McLauchlan
A departing Aurora Energy board member says pressure to pay for Forsyth Barr Stadium meant less was spent on network maintenance. Former Aurora and Delta board member Stuart McLauchlan was reluctant to go into any detail about the findings of a Deloitte review, but was keen to highlight the problems it identified pre-dated the current board. ….He said his resignation after nine years on the boards of the two beleaguered companies had nothing to do with the review’s findings and he was disappointed the connection had been made. Cont/

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ODT 15.12.16 (page 16)

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: ngaitahutourism.co.nz – stuart mclauchlan

Aurora/Delta : Richard Healey on the [SOON departing] CEO

At Facebook:

█ For more, enter the terms *delta*, *aurora*, *grady*, *luggate*, *jacks point*, *dchl*, *auditor-general*, *noble*, *yaldhurst* or *epic fraud* in the search box at right.

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta/Aurora spend-up at Stadium —Degraded electricity network, Us ? (said the GOBs) #LGOIMA #Rugby

Received.

From: Bev Butler
Sent: Tuesday, 22 November 2016 7:40 p.m.
To: Sue Bidrose [DCC]; Sandy Graham [DCC]; Lee Vandervis; Elizabeth Kerr
Cc: Vaughan Elder [ODT]
Subject: Re: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints/clarification/invoices

Dear Sue, Sandy, Lee and Elizabeth
I have just received the attached table and invoices for Delta’s spending at the stadium. They not only have a $45,000pa corporate suite contracted for 10 years, they also have used ratepayers’ money to purchase Gold tickets to concerts, they have spent thousands of dollars on expensive booze/wines and meals, stadium platters etc whilst watching rugby and concerts at the stadium. All this whilst neglecting the maintenance of basic infrastructure.
I am especially disgusted that this is continuing after the excessive abusive spending by the Carisbrook Stadium Trust which you are all aware of. Disappointingly nothing has changed. My opinion is that’s because no one has ever been held to account for the corrupt behaviour that ensued relentlessly throughout the stadium swindle. Please note that these invoices have been signed off by Grady Cameron and Gary Johnson. You may recall Gary Johnson was Farry’s CST public relations boy who worked for Farry part time on a full time salary – all documented in the CST invoices.
Elizabeth, feel free to post on What if as I am at the airport waiting for a flight to go overseas and will be out of range in two hours time.
Sincerely
Bev

On 22 Nov. 2016 2:05 pm, Glenda McGowan [Delta] wrote:

Dear Bev
I refer to your official information request of 12 November 2016 for a copy of all the invoices in relation to the entry in the table under the sub-heading “Other payments, including Forsyth Barr Stadium corporate suite costs (D)” in our response to you of 11 November 2016. The information you have requested is provided in the attached document.

Regards

GLENDA MCGOWAN
PERSONAL ASSISTANT TO CEO

WEB THINKDELTA.CO.NZ

█ Attachment: invoices_0001

********************************

From: Bev Butler
Sent: Saturday, 12 November 2016 10:46 AM
To: Glenda McGowan [Delta]
Subject: Re: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints/clarification/invoices

Dear Glenda

Further to my email below requesting clarification for the other payments included in with the corporate suite costs in row D, would you please send me a copy of all the invoices in relation to the entry in the table below under the sub-heading “Other payments, including Forsyth Barr Stadium corporate suite costs (D)”.

Please send me electronic copies.

Thank you.

Sincerely

Bev Butler

********************************

From: Bev Butler
Sent: Friday, 11 November 2016 3:50 p.m.
To: Glenda McGowan [Delta]
Subject: Re: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints/clarification

Thanks, Glenda.
Would you please clarify/list what the other payments were for which have been included in with the corporate suite costs in row D.
Thank you.
Sincerely
Bev

On 11 Nov. 2016 3:02 pm, Glenda McGowan [Delta] wrote:

Dear Bev

I refer to your official information request of 26 October 2016 for information regarding Aurora and Delta dividends and WorkSafe. The information you have requested is provided below.

1. The total yearly amount Aurora and/or Delta have paid to DCC/DVML/DVL for the stadium, including grants, subsidies, subvention payments or other, since 2007.

The total of subvention payments, tax offsets and other payments including Forsyth Barr Stadium corporate suite costs paid by Aurora Energy Limited and Delta Utility Services Limited to Dunedin Venues Management Limited or Dunedin Venues Limited by financial year ending 30 June are set out in the table below.

[click to enlarge]

Aurora Energy Limited and Delta Utility Services Limited pay dividends to their shareholder, Dunedin City Holdings Limited. We have not included dividend payments to Dunedin City Holdings Limited in the figures above on the basis that these are not stadium-related payments. Dividend payments are disclosed in our publicly available annual reports at www.auroraenergy.co.nz for Aurora Energy and www.thinkdelta.co.nz for Delta.

Delta | Home
http://www.thinkdelta.co.nz
Delta is the infrastructure specialist. We invest in, design, construct, manage and maintain energy and environmental infrastructure.

Home » Aurora Energy
http://www.auroraenergy.co.nz
New Zealand’s sixth-largest electricity distributor delivering electricity supply to homes and businesses throughout the Dunedin and Central Otago community.

2. Please also send me the name and contact email address of the Worksafe Investigation team leader as I want to ensure that the Worksafe Investigation team receive this relevant information.

The contact details are:
Roy Butler
Technical Officer
Energy Safety
Level 9, 280 Queen Street, Auckland Central, Auckland 1010
P +64 9 928 2912
E roy.butler @worksafe.govt.nz
W http://www.worksafe.govt.nz
W http://www.energysafety.govt.nz

Regards,

GLENDA MCGOWAN
PERSONAL ASSISTANT TO CEO

WEB THINKDELTA.CO.NZ

********************************

From: Bev Butler
Sent: Wednesday, 26 October 2016 2:21 PM
To: Grady Cameron [Delta]
Cc: Sandy Graham [DCC] ; Elizabeth Kerr
Subject: Urgent LGOIMA Request: Delta/Aurora dangerous power poles – reason for financial restraints
Importance: High

Wednesday 26 November 2016

Dear Mr Cameron

As you are aware Aurora pay a subsidy of approximately $7.2 million per annum to subsidise the stadium.

At $5000 per power pole this is equivalent to 1440 power poles per year.

I read in the ODT that Aurora’s excuse for not dealing with the backlog of dangerously compromised power poles was that there were financial constraints but nowhere did it mention the reason for these constraints. It is patently clear that Delta/Aurora/DCHL’s priority over the last few years has been to support a rugby stadium at the expense of public safety by way of subsidies/subvention payments.

It is in the pubic interest that Delta/Aurora are transparent especially now that this has become a public safety issue.

I, therefore, urgently request the following:

The total yearly amount Aurora and/or Delta have paid to DCC/DVML/DVL for the stadium, including grants, subsidies, subvention payments or other, since 2007.

Given the total amount is in the vicinity of approximately $40 million, then it is incumbent on you as CEO of both Aurora and Delta to inform the Worksafe Investigation team that Delta/Aurora/DCHL made stadium payments a priority over replacing dangerous power poles.

Please also send me the name and contact email address of the Worksafe Investigation team leader as I want to ensure that the Worksafe Investigation team receive this relevant information.

Yours sincerely

Bev Butler

[ends]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

Delta : Something to ponder……

Received.
Sun, 20 Nov 2016 at 10:44 p.m.

There are questions for the Council to ask Dunedin City Holdings (DCHL).

█ However, the one chosen, namely does DCHL have confidence in Delta, is not one of them.

Council should ask DCHL to explain why Council should have confidence in the board of DCHL, considering:

1) Both Delta and DCHL are expected to report financial budgets competently: recent talk of a need for increased investment required of $39 million suggests this has not happened.

2) Both Delta and DCHL are required to report to the shareholder within 5 days if there are any major issues that should be known, especially media related issues. This has not happened.

3) Delta is apparently intending to borrow $30 million dollars to deal with a public relations issue (the poles are apparently safe). There was no suggestion in any budgets that $30 million would be required for a public relations exercise, despite the CEO of Delta apparently having known for some years that the situation which is now in the spotlight would need to be addressed.

4) Neither of these companies accept that their plans included ignoring safety issues that others have noticed. It appears that Delta still does not accept that there are any safety issues that should have been addressed.

—

It is for DCHL to explain to Council why these financial and safety issues have arisen either without the knowledge of DCHL or with their knowledge which was not passed on.

The starting point must be to sack DCHL and appoint a replacement board unless there are prompt answers to the above which are acceptable both to Council and at this point to the public of Dunedin (and also to other places where Aurora provides services, come to that).

PS. Among the Not acceptable answers:
‘It is important that Council understands that dividends paid from profits are likely to be compromised as a result of the increased replacement programme undertaken by Aurora through Delta.’

[ends]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

*Image: linkedin.com – Fall from a height: a case study [poor Grady], tweaked by whatifdunedin

At ODT : DCC (oblivious) sound bites on Delta/Aurora #letters

Updated post
Sat, 19 Nov 2016 at 3:16 a.m.

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ODT 18.11.16 (page 10)

Douglas Field 18.11.16

N O T E
All the street lights between Green Island and North East Valley went out earlier this evening (Friday). The CBD now has lights back on, no idea about the rest.

?????

[later]
### ODT Online Fri, 18 Nov 2016
Street lights out in Dunedin
By Timothy Brown
Dunedin was plunged into darkness tonight after the city’s streetlights did not turn on. Delta marketing and communications manager Gary Johnson said the lights were scheduled to turn on at 8.52pm, but the automatic activation never occurred. Reports of the issue from around the city started circulating social media about 9.30pm. The lights were switched on manually from 9.50pm and all lights were confirmed on by 10.10pm, Mr Johnson said. “We apologise for any inconvenience and will be carrying out further investigation to pinpoint the reason the switching did not operate automatically as scheduled,” he said. Link

Updated at ODT Online: Street lights fail to turn on

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Posted by Elizabeth Kerr

This post is offered in the public interest.

DCC Annual Report to 30 June 2012 – borrowing and interpretation

DCC Annual Report (PDF, 1.1 MB)

Comments received.

—

Mike
Submitted on 2012/11/18 at 12:48 pm
well spotted – so in essence DVML quietly borrowed an extra $8.5m and managed to transfer it to the DCC without incurring any tax because it was a ‘capital gain’ rather than a ‘dividend’

—

Rob Hamlin
Submitted on 2012/11/18 at 2:07 am
Another little gem from the DCC annual accounts. A positive little Kimberly it is. Calvin Oaten and I found this little morsel from the sewers of local government yesterday and will now share it with you.

On page 132 it has a table of figures titled ‘Separately Disclosed Revenue’. One line entry towards the bottom is particularly interesting. The title is ‘Profit on sale of Stadium (2012)……. $8,480,000’. This profit appears in both ‘Core Council’ (DCC only) and ‘Consolidated’ (Council & DCHL) columns.

Initially, this seems like great news. We’ve sold the bloody thing and got eight and a half million dollars for it. But, as is always the case, things are not all as they appear.

Nearly sixty pages later, on page 188, we have the following sheet of gibberish:

“Sale of Forsyth Barr Stadium to Dunedin Venues Limited

On the 31 May 2012 the Council sold it’s [sic] interest in the stadium to a wholly owned subsidiary Dunedin Venues Limited. This was the culmination of a project spanning five years during which time the method of delivering the project changed and as a result there is a technical accounting surplus on disposal of $8,380,000. The following note is an explanation of these technical accounting issues.

Book Surplus on disposal of the stadium $ ‘000
Sale price 225,000
Capitalised stadium cost including interest 216,520
Surplus on sale of asset as per 2012 Annual Accounts 8,480
Less stadium costs written off to operations in 2007-2008 5,537
Plus stadium revenue included in operations in 2007-2008 (583)
Surplus on disposal 3,526

Book surplus on disposal of the stadium
The method of undertaking the stadium project changed over the years of the project. The accounting treatment always followed the method of project delivery and was audited as being the correct treatment at the time. In 2007–2008 year it was expected that the project would be delivered by a third party and that the Council expenditure was therefore operational. This resulted in $5,537,000 being correctly expensed in 2007–2008 year. In subsequent years once the decision was made that the Council would build the stadium, the expenditure was correctly capitalised. The surplus of $3,526,000 would remain as it is the difference between all the costs incurred by the Council and the sale proceeds received.”

Also on page 123 we have this note to one of the CCO fragmentary reports:

“CCO Property Plant and Equipment
All CCO property, plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses.
The Stadium is a separate class of asset and is recorded at cost less any accumulated depreciation and any accumulated impairment losses.”

So what happened? Well, you may remember that the total cost of the Stadium came in at around $216.5 million. Then, last year the DCC acquired a ‘valuation’ for the Stadium (God knows how and God knows from who) of $225 million. Its commercially realisable value is in fact, as we all know, the commercial value of the site minus the costs of demolition and removal, which is as near zero as makes no difference.

However, it now appears that DVL then ‘bought’ the stadium from the DCC at this higher valuation. It is hard to see any good reason why they would do this, as the historical cost of the stadium itself was $216.5 million – this figure would have fitted well with their own policy for valuation in the note on page 123. As the structure was brand new when ‘bought’, a second valuation was unnecessary. The historical cost of construction would have been more than adequate as a transfer price.

However, it appears that this unnecessary valuation exercise and its absurd outcome has allowed a further $8.5 million to be transferred from DCHL to the DCC this year on top of the $17.95 million handed over as a dividend, for a total of $26.45 million. It can also be claimed now with a straight face that DVL are acting in accordance with their requirement to record assets at cost as $225 million is what they ‘paid’ for it!!

Now let’s deal with the gibberish on page 188, which covers the financial year 2007-2008 (presumably ending 1 April 2008). Apparently, this specific structure incurred over five and a half million dollars of costs and over half a million dollars of REVENUE!!! before it had been fully designed or even approved as a specific entity that the DCC was actually going to construct! The final approval came nearly a year later I seem to recall.

I personally find this reduction in this ‘accounting profit’ to be wholly incredible. I can also find no adjustments matching this $5 million or so in the costs side of the DCC’s figures – even though the $8.5 million extra revenue appears in its entirety. Mind you, in the 200 pages plus of fragmentary and largely useless figures, I guess that I could have missed it.

Page 13 is also interesting. It is entitled ‘Audit Report’. Properly audited accounts require a signed statement by the auditor to form part of them, stating that the auditor’s unqualified opinion that they are satisfied with the accounts – or a statement of their reservations (qualifications) if they are not.

Page 13 is blank (surprised?)

On page 1, we have the following statement:

“This report asks the Council to approve and adopt the Annual Report for the year ending 30 June 2012.

The Director of Audit New Zealand responsible for the audit and the Audit Manager will attend to discuss the audit and answer any questions from councillors.”

In my opinion this is utterly inadequate basis upon which to approve this report. It should not have been even presented to Council, let alone approved, without a complete auditor’s report being attached to it.

It seems that the Council will have to find $25 million plus in savings by next year just to tread water, and that’s if we don’t get any more unpleasant surprises. Interesting times.

[ends]

—

Posted by Elizabeth Kerr

Delta purchases | Vandervis OAG complaint accepted

Read latest comments at this thread

### ODT Online Mon, 12 Nov 2012
Councillor lodges Delta purchase complaint
By Simon Hartley
A complaint has been lodged with the Office of the Auditor-General by Dunedin city councillor Lee Vandervis over Central Otago subdivision purchases which soured and left the council millions of dollars out of pocket.

DCC infrastructure company Delta bought part of a subdivision in Luggate in July 2008, and another at Jacks Point, near Queenstown, in May 2009, but their value has subsequently been written down by millions of dollars.

In mid-October, the DCC announced a $9 million write-down of Delta investments, including the subdivisions, which contributed to the Dunedin City Holdings Ltd (DCHL) group of companies’ booking a $5 million loss for the year to June.
Cr Vandervis claims pre-purchase details of the Jacks Point and Luggate subdivision acquisitions, plus details of City Forests’ mothballed wood-processing plant at Milburn, are being withheld from him.
Cr Vandervis contacted the Otago Daily Times yesterday, saying the Office of the Auditor-General had accepted his complaint and it had been passed on to its investigation unit, but he was yet to hear if the OAG would launch a full investigation.
Read more

A copy of the formal complaint was forwarded to What if? Dunedin on Thursday, 8 November 2012.

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Fairfax | DScene publishes Cr Vandervis’ questions (page 3):

Mayor sees red over Vandervis questions (ODT, 30.10.12)

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Related Posts:
31.10.12 Dunedin City Council – all reports posted, belatedly!
30.10.12 DCHL ‘run by a bunch of fools’ -agreed
26.10.12 No cloud has lifted off DCC, the sins are too great and numerous
26.10.12 DCHL: New directors for Aurora, Delta, City Forests
26.10.12 DCHL borrowed $23 million to bail DCC
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?
11.9.12 Delta Utility Services Ltd
30.8.12 DCC seen by Fairfax Business Bureau deputy editor Tim Hunter
24.8.12 Dunedin’s 3 waters, no CCO
16.8.12 Dunedin water assets
29.3.12 Dunedin City Council company sponsors Highlanders
7.3.12 DScene: Call for full inquiry into stadium project
20.12.11 Delta and the GOBs #DCHL #DCC
18.11.11 Delta rebrand
29.7.11 WE ALL SAID IT #DunedinCityCouncil #SHAME
9.2.11 DCC and DCHL, was there ever any doubt?
26.8.09 DScene: Delta, STS, DCC larks
9.7.09 Delta dawn what’s that flower…

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Posted by Elizabeth Kerr

Dunedin City Council – all reports posted, belatedly!

Annual reports for council-owned companies were withheld from public and media scrutiny, without notice, prior to the council meeting held on Monday, 29 October 2012. The Mayor of Dunedin Dave Cull and DCC chief executive Paul Orders are individually responsible for deliberately withholding this financial information. Although, along with them, we suspect other players in the woodpile.

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### ODT Online Wed, 31 Oct 2012
Report about stadium loss slips under radar
By Chris Morris
A worse-than-expected $3.2 million loss recorded by the company running Dunedin’s Forsyth Barr Stadium did not rate a mention at this week’s Dunedin City Council meeting. It emerged yesterday Dunedin Venues Management Ltd and Dunedin Venues Ltd’s annual reports had quietly slipped through Monday’s full council meeting without a question or word of debate. There had been no mention of DVML or DVL on the meeting’s public agenda, and it appeared the reports had not been circulated publicly, to media or even some council staff, as required, in the days before the meeting, the Otago Daily Times discovered yesterday.
Read more

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DUNEDIN CITY COUNCIL AGENDA
MONDAY, 29 OCTOBER 2012, 2.00 PM
COUNCIL CHAMBER, MUNICIPAL CHAMBERS29 October 2012

Agenda – Council – 29/10/2012 (PDF, 118.9 KB)

Report – Council – 29/10/2012 (PDF, 77.9 KB)
ISCOM Approved Out of Water Supply Area Connection – Mr J D MacDonald, 3509 Sutton-Clarks Junction Road, RD 2, Outram 9074

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Approval and Adoption of Annual Report

Report – Council – 29/10/2012 (PDF, 788.2 KB)
Vehicle Access John Wilson Ocean Drive

Report – Council – 29/10/2012 (PDF, 4.6 MB)
Speed Limits Bylaw Review

Report – Council – 29/10/2012 (PDF, 978.0 KB)
Speed Limits – Safer Speeds Demonstration Area

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Submission on the Local Government Regulatory Performance Issues Paper

Report – Council – 29/10/2012 (PDF, 155.1 KB)
Meeting Schedule for 2013

Report – Council – 29/10/2012 (PDF, 1.2 MB)
Aurora Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.8 MB)
Delta Annual Report 2012

Report – Council – 29/10/2012 (PDF, 813.7 KB)
Dunedin International Airport Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.0 MB)
Dunedin Venues Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 1.1 MB)
Dunedin Venues Management Limited Annual Report 2012

Report – Council – 29/10/2012 (PDF, 225.0 KB)
Taieri Gorge Railway Annual Report 2012

Report – Council – 29/10/2012 (PDF, 2.8 MB)
Dunedin City Treasury Annual Report 2012

DCC Link

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### ODT Online Wed, 31 Oct 2012
Stadium finances dismay
By Chris Morris
Dunedin Mayor Dave Cull says the Forsyth Barr Stadium’s finances are “not sustainable”, after confirmation the company running the venue lost nearly $1 million more than expected in its first year of operation. The result was contained in Dunedin Venues Management Ltd’s 2011-12 annual report, released to the Otago Daily Times yesterday, which showed the company lost $3.2 million in its first year. That was $814,000 worse than the $2.4 million loss forecast in May, when DVML’s revelations of a half-year, $1.9 million loss prompted the council to launch a review of the entire stadium operation.
A copy of Dunedin Venues Ltd’s annual report was also released yesterday, and showed the company that owned the stadium – and received rent from DVML – recorded a $4.312 million loss for the same period.
Read more

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Posted by Elizabeth Kerr

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.

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### 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…

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Posted by Elizabeth Kerr

DCHL borrowed $23 million to bail DCC

Why are the Otago Daily Times (Allied Press) and DScene (Fairfax) refusing to print the truth about Dunedin City Holdings accounts?

The $23 million that DCHL reportedly PAID as dividend etc to Dunedin City Council, is borrowed.

DCHL borrowed $23 million to bail the spendthrift DCC and make it look like we have a 5% rates increase instead of the real 25% increase without the new borrowing.

You’ll find all the details here:

DCHL Annual Report 2012 (PDF, 2.1 MB)

The ‘debt-deniers’ from DCHL are trying to characterise this year’s disastrous council-owned companies annual accounts as one of ‘ups and downs’.
ODT 18.10.12

The DCHL annual report actually shows:

● Delta business goodwill – Down
● Jacks Point/Luggate property values – Way Down
● City Forests carbon credits, log returns and valuations – All Down
● City Forests Milburn Wood Processing Mill – Down
● DCHL cashflow – Down
● DCHL profit – Down and Out and Negative: minus $5 million
● The only significant ‘Up’ is more DCHL borrowing

—

Repeat:
What DCHL has delivered is another $23 million of debt which they have had to borrow against company assets because the council has already spent it.

The claim that DCHL’s borrowing to supply dividends will stop from next year is a claim with onerous consequences.

– The council’s gross spending continues unabated.
– Together, DCC and DCHL have racked up all possible debt.

Without serious moves to slash staff and shrink the number of company directors, the only option that remains is Asset Sales.

———————————————

A note on two DCHL subsidiaries

The directors of Delta Utility Services Ltd and Delta Investments Ltd are guilty of having made the decision(s) to speculate on property at Queenstown’s Jacks Point and Luggate, using ratepayer funds. No other conclusion is able to be drawn, they are all responsible. They are all liable.

The value of the properties has been written down by millions of dollars, a loss to the ratepayers who were unaware of the purchases until the deals were concluded.

This is not simply a matter of loss of ‘book value’.

The directors of the two companies had real and perceived conflicts of interest in conducting the property deals. They continue as directors with clear conflicts of interest.

The directors should be SACKED. Meanwhile, we await news of ‘board restructuring’. [see post]

DCHL chairman Denham Shale should be SACKED for misrepresenting the facts and condoning the actions of the two boards.

Who are/were the directors responsible?

Delta Utility Services Limited
[formerly Delta Energy Limited; The Electric Company of Dunedin Limited]
Michael Owen COBURN
Norman Gilbert EVANS
Ross Douglas LIDDELL
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Delta Investments Limited – property subsidiary
[formerly Newtons Coachways (1993) Limited]
Grady CAMERON [also, Chief Executive of Delta Utility Services]
Michael Owen COBURN
Stuart James MCLAUCHLAN
Raymond Stuart POLSON

Throw out Athol Stephens, DCHL Secretary, for good measure.

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Posted by Elizabeth Kerr

DCHL: New directors for Aurora, Delta, City Forests

Dunedin City Council
Media Release

New Directors for Dunedin City Holdings Company Boards

This item was published on 26 Oct 2012.

Appointment of New Directors to the Board of Aurora Energy Limited and Delta Utility Services Limited

The Board of Dunedin City Holdings Limited is very pleased to announce that Dr Ian Parton and Mr Dave Frow have been appointed as new Directors of Aurora Energy Limited (“Aurora”) and Delta Utility Services Limited (“Delta”). Both of the new Directors come to the Company with distinguished careers as engineers and extensive governance backgrounds.

Effective from 1 November 2012, the directors will join Mr Ray Polson and Mr Stuart McLauchlan on the two boards which will comprise four members in the meantime.

Dr Parton is a Distinguished Fellow and Past President of the Institution of Professional Engineers of New Zealand. Dr Parton was for fifteen years Managing Director of Meritec Group Limited (formerly Worley Group Limited) and more recently was Transition Chief Executive of Watercare Services Limited managing the integration process with respect to amalgamation of the wholesale and retail water companies which resulted from the “Super City” initiative in Auckland. Dr Parton is a Director of Auckland Transport Limited and Skellerup Holdings Limited and is also Pro-Chancellor of the University of Auckland.

Mr Frow’s background since coming to New Zealand from South Africa in 1979 has largely been in the electricity industry. He worked with the Ministry of Energy for nine years before joining Electricity Corporation of New Zealand where he became Chief Executive in 1992 through until 1999. Subsequently Mr Frow has served on the Boards of Waste Management Limited and Unison Networks Limited. He was a member of the Telecom Independent Oversight Group through to December 2011 and is currently a Director of ETEL Limited and Holmes Fire & Safety Limited both of which companies are involved in the electricity industry. Mr Frow is a Fellow of the Institution of Professional Engineers of New Zealand.

Dunedin City Holdings Limited is very pleased to have obtained the services of these two Directors who will bring to the Boards of Aurora and Delta vast experience in the areas in which each of these companies operate.

Appointment of New Directors to the Board of City Forests Limited

Following agreement from the Dunedin City Council, Dunedin City Holdings Limited is pleased to announce the names of two new directors for the board of City Forests Limited. The appointments are to be effective from 1 November 2012.

The two new directors, both from Dunedin, are Mr John Gallaher and Mr Tony Allison. They will join Mr Ross Liddell and Mr Mike Coburn on the board which will comprise four members.

Mr John Gallaher is a senior investment professional with Forsyth Barr Limited who began his commercial career with roles in banking, finance corporate management and marketing 35 years ago. John is Chairman of TracPlus Global Limited, Daestra Holdings Limited, United Way NZ Limited, Tui Motu Foundation Inc. and the Upstart Investment Committee and he has several other directorships.

Mr Tony Allison is currently the CEO of Night ‘N Day Foodstores Limited that in the last few days ranked very highly in the Deloitte Fast 50 List. Prior to that he was the Chief Operating Officer and a director of Calder Stewart Industries Limited where he gained experience of forestry operations. Tony is also currently a director of AA Cleaners (Otago) Limited, St Clair Beach Resort, Southern Team Co 2008 Limited and the Southern Steel Netball Team.

Both these two Dunedin directors have excellent corporate governance understanding and collectively they will bring to the board experience of governance and the forestry industry relevant to the business of City Forests Limited.

Contact Denham Shale, Chairman, DCHL on 021 375 112.

DCC Link

—

Posted by Elizabeth Kerr

The only thing up…. (for sale)

Email received.

—— Forwarded Message
From: Lee Vandervis
Date: Wed, 17 Oct 2012 19:51:39 +1300
To: Debbie Porteous , Chris Morris
Cc: EditorODT
Conversation: DCHL claim of ups and downs
Subject: DCHL claim of ups and downs

Hi Debbie and Chris,

The debt-deniers from DCHL are trying to characterise this year’s City Companies Annual Reports as one of ups and downs.
Delta business goodwill is down.
Jacks Point/Luggate property values are way down.
[City Forests] carbon credits, log returns and valuations are down.
[City Forests] Wood Processing Mill is down.
DCHL cash flow is down and profit is down and out and negative.

The only thing significantly up is DCC funding requirements for the Stadium, met by significant borrowing again this year, but with a promise that the DCHL borrowing will now stop.
Without the courage to slash and burn staff costs and biff all directors responsible for scandalously speculative Jacks Point/Luggate, Wood Processing Mill etc, the only option that remains is asset sales.
Look out City Properties, Waipori Fund, Forests etc.

Kind regards,
Lee

—

Posted by Elizabeth Kerr

DCC on DCHL, subsidiaries and DCTL

UPDATED POST 18.10.12

“It’s probably good to take all your bad news at the same time and look forward to the future.” -Denham Shale, DCHL

PROPERTY SPECULATION BY DELTA DIRECTORS WITH LOCAL COMPANY LINKS, IS THE MISUSE OF PUBLIC FUNDS. STOP.
GLARING CONFLICTS OF INTEREST ARE INVOLVED. STOP.
DCHL CHAIRMAN IS FULLY COMPLICIT, ALONG WITH DCHL BOARD OF DIRECTORS. STOP.
DUNEDIN CITY COUNCILLORS FAIL RATEPAYERS AND RESIDENTS SEVERALLY. STOP.

See link to ODT report added below.

—

DCHL Annual Report 2012 (PDF, 2.1 MB)
Dunedin City Holdings Ltd Annual Report 2012

Warren Larsen Report (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.

BUT WHAT’S THE REAL STORY?

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Dunedin city Council
Media Release

Dunedin City Holdings Limited Annual Result for the year ended 30 June 2012

This item was published on 17 Oct 2012.

This past year has been a challenging year in which there has been a well publicised change in governance of the parent company. It has been a year that has been affected by a slow economy and poor export log prices and a year in which the subsidiary companies decided to write down the values of assets where impairment occurred.

Revenue has increased for the year by 3.7% to $254.9m, however, the profit has been affected by a series of factors that are fully explained in the Annual Report of the company. These factors are the effect of the Dunedin City Holdings (DCHL) group providing subvention payments directly to Dunedin Venues Limited in lieu of dividends to the Council, the effect of asset impairment provisions made by the Delta group in respect of goodwill on a number of past business acquisitions and land at Luggate and Jacks Point, pressure on margins in a slow economy, and lower carbon credit income in comparison with last year.

Separately from the activities of the subsidiaries the holding company board has been active working on a number of issues arising from the Larsen report. “Last December I stated that we have been charged with restructuring a number of aspects within the group. You have seen the recent appointment of two additional directors to the parent company board. We anticipate further announcements by year end from suggestions to be made to the Council over the next two months.” comments DCHL Chairman, Denham Shale.

“As a matter of principle, the current board has taken the view that borrowing should not be entered into for the payment of dividends. But it is important to note that much of the drop in profit last year was caused by the agreement in respect of Dunedin Venues Limited and accounting provisions rather than cash outflows. Against this, dividends in this current year will be paid from surpluses that we would expect to make over the year to June 2013. Therefore it is not necessarily correct to assume that because last year was poor that there will be no dividend this year. ”

Aurora Energy Limited has traded well although the economy has slowed the growth in the quantity of electricity carried on the network.

The NZ forestry industry has had another difficult year and, as the public is aware, City Forests Limited decided to cease operating its timber processing mill. The Milburn asset has been leased to Craigpine Timber Limited.

The electrical asset planning and maintenance businesses of Delta Utility Services Limited have operated well. But the demand for other infrastructure services weakened and company was forced to conduct a series of adjustments to reposition the company to match reduced demand. The land holdings of the Delta group, which have attracted media attention, are under close management.

The summer tourism season last year was well underpinned by the visits of cruise ships. We expect an improving cruise ship season over this next summer.

Overall passenger numbers into Dunedin International Airport were 9.9% up for the year. The operating surplus after tax achieved by the company for the year was an improvement on both budget and the same period last year. A substantial revaluation of the assets of the company has increased the carrying value of the investment in the books of the DCHL parent company.

Contact Denham Shale, Chairman, DCHL on 021 375 112.

DCC Link

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### ODT Online Thu, 18 Oct 2012
$5m loss for DCC group
By Chris Morris
A $9 million write-down in Delta’s investments – including property at Jacks Point and Luggate – is partly to blame for a multimillion-dollar loss booked by the Dunedin City Council’s group of companies.[…]Mr Shale was reluctant to criticise yesterday when asked if the property purchases had proven to be a mistake. “I wouldn’t call it a mistake, no. As we see it today, it could be called an unfortunate decision, but that is very much in hindsight. It’s very easy in hindsight.” He also saw no need for the new DCHL board to investigate the rationale behind the purchases, saying they were “a fact that’s there”. “We can’t do anything to change it.” He blamed the result on the world economy…
Read more

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Related Posts:
12.10.12 DCHL, subsidiaries and DCTL
30.8.12 Dunedin City Council seen by Fairfax Business Bureau deputy editor Tim Hunter

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Posted by Elizabeth Kerr

DCHL and subsidiaries: shuffling, no real clean out?

Read: “Keeping Stuart”
Larsen recommended looking to the national pool of directors (steering away from the local boys) – the kind of writing on the wall we wanted. Alas, politics afoot in the run up to local body elections, huh Dave?

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### ODT Online Fri, 16 Sep 2011
Cull hopes to effect directorship rule changes soon
By David Loughrey
Changes in the Dunedin City Council’s group of companies – expected to result in the end of the terms of at least some directors – should be imposed soon, despite the illness of a key figure causing a delay. The changes were expected at a Dunedin City Holdings Ltd (DCHL) annual meeting planned for October 31, following the release today of the companies’ annual reports.

The council appoints directors of DCHL, and is asked to approve DCHL’s recommendations for directors of the subsidiaries.

Read more

Related Posts:
13.8.11 Ridding DCHL of conflicts of interest . . . and other ghouls
9.8.11 CRITICAL Dunedin City Council meeting

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Posted by Elizabeth Kerr