Tag Archives: Companies

Basic questions arising for the City, unpublished by the newspaper

Received from John Evans
Tue, 17 Jan 2017 at 7:47 p.m.

From: John Evans
Date: Monday, January 16, 2017
Subject: KPI
To: ODT editor

The Editor, ODT

Sir,

We are often regaled by company directors, CEOs and bureaucrats with discourses on the importance of KPIs. KPIs?

Key Performance Indicators – one of many PR corporate speak Buzzwords.

Wikipedia’s definition is pretty broad but basically it means that certain measures designed by the company or board are measured against actual performances.

Recently, the term gained another meaning when KEY performance [was] reassessed in the light of John KEY’s resignation. Unfortunately his stellar career as Prime Minister seemed to be judged poorly by those political pundits doing the assessment.

The key word is Performance, the measure of which is judged in order to provide an increase in salary or measures which might lose the judged their position if they failed to meet the KPIs included as part of the employment contract.

The test is what performance is paramount and who is it paramount to.
These tests are important in worldwide businesses but is there a different reality in New Zealand? It seems to me that either the KPIs are set incorrectly or there is a disconnect because no one seems to fail, to not meet their predetermined KPIs.

[infront.com]

One example is the role of council lawyers. Why would council lawyers write in an employment contract a clause which gave the employee a golden parachute even if they failed to meet their KPIs? Or was it the employees themselves who wrote the KPIs for their own future benefit? Surely if this was so, the lawyers acting for the company or body they represent would refuse to condone the parachute for employees and directors after proven incompetence.

The Dunedin City Council and its management, and the council owned companies, are surely charged with KPIs and, one surmises, about the results of such indicators and the resultant effects on the council and its employees. Can we analyse a few actions of the council and what the KPIs may have been and whether they would meet them and perhaps the consequences of meeting them or not.

The first and most obvious one is the theft of 152+ cars.
What was the measure of acceptable theft? Was it 20 cars, 100 cars or was 150 cars sufficient to tip them over the edge. And as another example, what was the Police’s key indicator on this matter? Do they prosecute for the theft or conversion of 1 car or does it take 160 cars to prosecute somebody for being involved either in the theft or knowing receipt of a car or cars?

The next is the investment in land and development projects by Delta.
Was failure in one, two or three such projects acceptable or is the magic number 5 (Delta will do it again and we have not quite got there yet).

The Dunedin stadium KPIs. Is a running cost of some $20million acceptable as an annual loss to the ratepayers or should the losses be only $15million or shock horror only $5million. Or should the ratepayers be released from the financial burden which was never the choice of the majority?

Sewage Treatment KPI – Is it acceptable to process sewage to a point that it pollutes the ocean two kilometres out or are we entitled to potable water ex site at Tahuna?

Mudtank cleaning KPI – How many mudtanks cleaned would be an acceptable result, would a flood in South Dunedin suggest that measure was incorrect? Contractual performance and payment for same. Would a KPI for the DCC CEO include overall managing payments to contractors? If a contractor did not perform to those KPIs set within the mudtank cleaning contract, should the contractor be still paid?

Wastewater treatment – Is it an acceptable KPI for wastewater treatment that in high rainfall such overflows are discharged into the pristine Otago Harbour?

Delta KPI on pole replacement. Is 100 unreplaced tagged poles acceptable? Is 1000 acceptable? On suspect poles, is a KPI that the company changes so that they did not breach a previous KPI acceptable or should every company and council just change their KPIs to avoid failure, blame or the legal consequences?

Richard Healey, the “whistleblower” on Delta’s failures seems to have personal ‘built-in’ KPIs —including integrity, high quality job performance, peer safety and corporate responsibility. Just why do the CEO and directors’ KPIs apparently differ from these such that Healey has to resign for them to take note?

On Directors of the council owned companies, do their KPIs reflect their responsibility under the law or are they designed to protect the directors from prosecution under the law despite failure by other measures?

And where does the buck stop?

Just what are the KPIs upon which we judge the mayor, based? Is the only measurement his electability?

Are we the ratepayers not entitled to expect a KPI that includes retribution against failings in any DCC departments or DCHL companies? If we do not reward success and prosecute failure in some way are we not missing the whole point of Pavlov and his dogs? Should we not then close our prisons and let the perpetrators of violence, antisocial acts and any injustice roam free, surely this is the logical nett result of such an attitude of no judgement.

The analysis of John Key’s contribution would suggest that electability and performance may well be poles apart. Perhaps that is the greatest lesson we can learn from the errors of judgement of recent times in our city.

John P. Evans
Otakou

[ends]

Posted by Elizabeth Kerr

This post is offered in the public interest.

2 Comments

Filed under Business, Central Otago, Citifleet, DCC, DCHL, DCTL, Delta, Democracy, Dunedin, Economics, Electricity, Finance, Health, Infrastructure, Media, Name, New Zealand, OAG, Ombudsman, People, Pet projects, Police, Politics, Project management, Property, Public interest, Queenstown Lakes, South Dunedin, Stadiums, Travesty

D C Ross precision engineering

Tragically….
There was a DCC media release New Directors Announced (23.12.14) in which DCHL’s Mr Crombie stated the new directors would “bring a wealth of experience and ideas to the boards” ….with Mr Cull saying “these appointments will inject new blood and proven skills into our Council company boards and I am confident they will contribute towards meeting Council’s increasing demands on company performance”.
Ah well. Our dear Mr Larsen !!

### ODT Online Wed, 21 Sep 2016
Engineers in receivership
By Simon Hartley
Twelve jobs are under threat at specialist Dunedin engineering company D.C. Ross, after its shareholders placed the company, more than 50 years old, into receivership. The McConnon family of Dunedin, who had a sizeable fortune from dairy interests in the days before and after Fonterra’s formation, are the majority 72.5% shareholders. Their Aorangi Laboratories Ltd holds 1.77million shares, split into five wider, equal, family allocations. D.C. Ross chief executive Peter Deans, a 12% shareholder along with co-director Robert Houliston, also with 12%, confirmed yesterday the Kaikorai Valley Rd company was placed in voluntary receivership, by its shareholders, not creditors. Mr Deans, who has been with the company for almost 18 years, said there had been “poor governance” since the aftermath of the 2007-08 global financial crisis and the company was “left to meander”.
Read more

D C ROSS LIMITED (1340666) In Receivership
Incorporation Date: 11 Jul 2003
Registered from 11 Jul 2003 to 14 Sep 2016
Address for service: 570 Kaikorai Valley Road, Dunedin
Pending address change to 188 Quay Street, Auckland Central, Auckland 1010 on 22 Sep 2016
http://www.companies.govt.nz/co/1340666

ODT
13.4.15 Letter to Editor: DCC not holding DCHL to account
12.2.13 Ditching the big brother thing (mention)
27.3.10 Engineers with long experience
24.9.08 Automotive parts engineer reduces staff level

Posted by Elizabeth Kerr

Election Year. This post is offered in the public interest.

2 Comments

Filed under Business, DCHL, Dunedin, Economics, Finance, Media, Name, New Zealand, People, Project management, Public interest

M-alicious treatment dealt to #Wests

M&M 2

Dunedin soft drinks institution subjected to “full-scale assault” from medical officer of health and licensing inspector. (ODT 16.8.16)

Fri, 2 Sep 2016
Scoop: Mayor disappointed by ARLA Wests Cordial Decision
Dunedin (Thu, 1 Sep 2016) – The Mayor of Dunedin, Dave Cull is disappointed the new alcohol legislation has caused South Dunedin company Wests Southern Liquor to lose its licence.

Fri, 2 Sep 2016
ODT: ‘Crazy’ decision to strip Wests of liquor licence, owner claims
A Dunedin soft drinks institution has had its liquor licence stripped in what its owner is calling a “crazy” decision. Wests (NZ) Ltd’s director Alf Loretan said he was “very disappointed” with the Alcohol Regulatory and Licensing Authority decision, which will most likely signal the end of his and his wife’s stressful two-and-a-half-year fight for their 140-year-old Bay View Rd business to retain its licence.

Thu, 1 Sep 2016
Stuff: Last call for iconic Dunedin soft drink retailer Wests?
Dunedin’s mayor has lashed out at “ridiculous” alcohol licensing legislation after it cost a local company its licence to sell booze from its factory shop. Wests (NZ) Ltd has lost its fight to keep its liquor licence. The company has been trading in Dunedin for 140 years. […] To qualify for a liquor licence, Wests needed to prove 85 per cent of its sales were for alcohol, which it did not do. The case was heard by the Alcohol Regulatory and Licensing Authority (ARLA) earlier this month, after Southern medical officer of health Marion Poore and Dunedin district licensing inspector Martine Cashell-Smith appealed a decision by the Dunedin District Licensing Committee (DLC) to renew Wests’ liquor licence.

Wests logo [wests.co.nz]

WESTS is proud to be New Zealand’s oldest continuous manufacturer of Cordials and Soft Drinks. The Wests brand began back in 1876, the same year another local family, the Speight’s, began their brewing business….

Website: http://www.wests.co.nz/

█ Read about the history of the company and what it does now at http://www.wests.co.nz/history

Related Post and Comments:
5.7.16 #Wests —Councillors ??! Please act. [DCC out of order.]

Posted By Elizabeth Kerr

Election Year. This post is offered in the public interest.

*Image: odt.co.nz + whatifdunedin tweaks

12 Comments

Filed under Business, DCC, Democracy, Dunedin, Economics, Finance, Geography, Health, Heritage, Media, Name, New Zealand, People, Perversion, Politics, Property, Public interest, Site, South Dunedin, Tourism, Travesty, Urban design

Christchurch rebuild, slants

Slow to roll….

nzplatts Published on May 7, 2014

Christchurch CBD Rebuild 2014
All music rights to Coldplay ‘Fix You’ – https://itunes.apple.com/nz/artist/coldplay/id471744

Christchurch, rise….

DTPictures NZ Published on Jan 18, 2014

Christchurch – January 2014
The familiar sound of Christchurch’s trams are back in the CBD, it was a glorious day, and I wanted to test out my new GoPro! Cue time lapses, wide angles, and gratuitous slow motion shots…
Photography: Dan Heuston
Music: ‘Rise’ by Ultravox (Google Play • iTunes)

### stuff.co.nz Last updated 05:00, January 10 2015
Tougher conditions expected
By Tim Fulton – The Press
CHRISTCHURCH—Commercial construction firms are waiting to see how busy they will be this year as big jobs come together. The city’s commercial construction will get tougher, as the “greater rebuild” starts to wind down, Anthony Leighs says. “I have a bit of a fear that some will just react a bit too slowly and that will be painful and financially costly,” Leighs, the managing director of Leighs Construction, says.
The key to doing well in the rebuild is growing strategically, he says. Some companies are already caught between “scale-up” mode and planning for the time when work falls away. “Anecdotally, I know there are construction organisations who are finding the going, pretty bloody tough. And from this point onwards it’s not going to get easier – it’s going to get harder.”
Large projects for Leighs in the next 24 months will include Burwood Hospital overhaul and the Westpac and ASB buildings.
Commercial builders are also developing Christchurch Public Hospital, the Convention Centre, the Justice Precinct and “supposedly the Metro Sports Centre”. It is adding to the national strain on labour and construction materials, Leighs says. “The demand on resourcing is already pretty acute and it’s going to become far more significant.”

Christchurch CBD vision (labelled plan)

Hawkins chief executive Jim Boult says subcontractors to Canterbury’s commercial rebuild may soon look to the residential sector to ease staff shortages.

Christchurch has “adequate work for all good commercial construction companies at the moment” but companies will have to be nimble, Boult says. Most commercial firms are waiting to see how busy they will be, if and when some large government and private sector jobs come together. “If they all come out one-after-another, no problem. But if they all come out at the same time, then that could cause some constraints,” Boult says.
Contractors will probably need more migrants and imported, pre-fabricated materials from overseas to get the work done. They will also need to be careful not to be too large once their workload falls away.
Read more

****

58 comments….

### 3news.co.nz Wednesday 5 Nov 2014 11:27 a.m.
Rebuild companies breaching employment law – MBIE
Labour inspectors say they’re disappointed how many staff working on the Christchurch rebuild are not being treated fairly by their bosses. Sixteen labour hire and construction companies have been found to have breached employment laws following audits by the Ministry of Business, Innovation and Employment’s Labour Inspectorate. Inspectors audited 40 Canterbury companies in the last six months and of the 23 audits now complete, 16 have breached employment laws. Most of the breaches related to incomplete employment agreements, unlawful deductions from wages and insufficient records, Labour Inspectorate southern region manager Steve Watson says. NZN
Read more

****

Back then (2012)….

### stuff.co.nz Last updated 19:46 30/07/2012
Rebuild plan for Christchurch unveiled
By Lois Cairns
As many as 840 properties will need to be purchased to turn the Government’s plans for rebuilding Christchurch’s city centre into reality. The 100-day blueprint released by the Christchurch Central Development Unit (CCDU) today outlines a bold plan to significantly shrink the size of the CBD by designating two strips of land – one in the east of the city and one in the south – as open spaces. These open spaces, along with the Avon River, which will be widened in stretches and developed into a riverside park, will serve to frame the new CBD, ensuring that all new development is concentrated within a tight geographic area.
Read more | Interpretive Location Map

AJ Funnell Published on Jul 7, 2014

Christchurch Flyover
Christchurch’s new look city… The video says up to 10,000 people could be working within 300 metres of the city centre. Animation Research Ltd (ARL).

Posted by Elizabeth Kerr

35 Comments

Filed under Architecture, Business, Construction, Democracy, Design, Economics, Events, Geography, Heritage, Media, Name, New Zealand, People, Politics, Project management, Property, Site, Town planning, Urban design, What stadium

RNZ: Cost of economic crime

My conclusion (which should sound vaguely familiar) – our priorities as a country are completely screwed. If we put as much energy into cracking down on economic crime as we did chasing welfare cheats – we could afford a proper welfare system…. –Anthony Robins, The Standard 21.10.14

### radionz.co.nz Updated at 1:17 pm on 19 October 2014
Sunday Morning – sunday@radionz.co.nz
Economic crime costs up to $9.4bn
By Jeremy Rose
Economic crime is costing New Zealand up to $9.4 billion a year according to a draft Serious Fraud Office (SFO) report obtained by Radio New Zealand.

Listen to a full discussion of the document on Sunday Morning (48:55) {Citifleet gets a sound bite}

At the beginning of last year the then Minister for the SFO, Anne Tolley, was reported as saying that a number of Government ministries had been working for two years on a report quantifying the cost of economic crime and it would be presented to Cabinet in the near future.

But the report did not make it to Cabinet and was not released.

Read the SFO draft report obtained by Radio New Zealand

Radio New Zealand obtained a draft copy of the SFO’s report under the Official Information Act. The methodologies that would have made it possible to calculate the total costs were redacted.
However, Radio New Zealand has also obtained a copy of the report with the estimated costs of the various types of economic crime included – which put the total cost of economic crime at between $6.1 and $9.4 billion.
The report noted that was more than twice the combined annual budgets of police, the Department of Corrections, and the courts; more than the total net profit of New Zealand’s top 200 companies and top 30 financial institutions; or the equivalent of $2000 for every adult living in New Zealand.
Read more

SFO Economic Crime [RNZ graphic][Graphic: Radio New Zealand – some estimates in the report]

****

ODT 20.10.14 (page 8)

ODT 20.10.14 Letter to the editor Eaton p8

● ODT 16.10.14 Feeley speaks up for SFO
● ODT 18.10.14 SCF witness omission puzzles

Posted by Elizabeth Kerr

2 Comments

Filed under Business, Carisbrook, Citifleet, Construction, DCC, DCHL, Democracy, DVML, Economics, Geography, Media, Name, New Zealand, NZRU, ORFU, People, Pics, Politics, Project management, Property, Sport, Stadiums, What stadium

DCC’s debt level — who do you believe?

Updated post 7.7.14

### ODT Sat, 5 July 2014 (page 34)
Opinion: Letters to the editor
Drastic action urged on DCC’s debt level
The recent Ratepayers Report on New Zealand councils’ relative financial performance makes for sobering reading for Dunedin’s 53,266 ratepayers. The Dunedin City Council’s debt per ratepayer of $15,093 is nearly the highest in New Zealand and is exceeded only by Auckland.
The DCC is amongst New Zealand’s worst-performing councils in terms of operating expenditure at $6885 per ratepayer, well ahead of the national average of $3175 per ratepayer. DCC employee expenditure per ratepayer is $1783, which is three times the national average.
It’s hard to believe Dunedin was once famous for thrift and living within its means. Mayor Cull and the new CEO Sue Bidrose must wake up and make some drastic cuts as soon as possible, given the DCC’s shocking performance compared to most other local authorities.
T. Stevens, Dunedin

[Dunedin City Council group chief financial officer Grant McKenzie replies: “The figures quoted by your correspondent are for the group position of councils and highlight the fact the Dunedin City Council has significant other assets (Aurora Energy Limited, Delta Limited, City Forest’s Limited and Taieri Gorge Railway Limited). The actual asset value for the group is in excess of $70,000 per ratepayer.
“For Dunedin, the average rates bill is $1750, which is the 13th-lowest of all the councils and reflects the benefits we receive from the wider DCC group.”]

I note Grant McKenzie leaves off mention of the stadium companies DVML and DVL, which are now part of DCHL, and the effect of their growing debt on the council’s overall position. And what of all misappropriation of funds and serious fraud at DCC, DVML and CST still to be revealed, you have to ask.

█ Ratepayers Report at http://www.ratepayersreport.co.nz/

Larry Mitchell’s opinion of DCC’s reply to T. Stevens would be interesting – further, it’s not like other councils don’t have their own companies or significant and strategic assets.

█ Then to blow everything out of Otago Harbour there’s DCC’s exposure to global markets through borrowing – see new comment by Rob Hamlin.

Related Post and Comments:
12.6.14 Fairfax Media [not ODT] initiative on Local Bodies

Posted by Elizabeth Kerr

21 Comments

Filed under Business, DCC, DCHL, DCTL, Delta, DVL, DVML, Economics, Media, Name, New Zealand, People, Politics, Project management, Property, Sport, Stadiums, What stadium

DCC meeting, Monday 7 October Annual reports

Meeting of the Dunedin City Council
Monday 7 October 2013 at 1.00 PM
Council Chamber, Municipal Chambers

Agenda – Council – 07/10/2013 (PDF, 73.5 KB)

Report – Council – 07/10/2013 (PDF, 42.4 KB)
Annual Reports of Dunedin City Holdings Ltd and Group Companies. The individual reports can be found at: www.dunedin.govt.nz/dchl

Report – Council – 07/10/2013 (PDF, 41.7 KB)
Annual Reports from Dunedin Venues Management Ltd and Dunedin Venues Ltd 2013. The individual reports can be found at: www.dunedin.govt.nz/dvml and www.dunedin.govt.nz/dvl

Report – Council – 07/10/2013 (PDF, 70.8 KB)
Delegations during the Election Period

Report – Council – 07/10/2013 (PDF, 112.6 KB)
Otago Rural Fire District Proposal

Report – Council – 07/10/2013 (PDF, 2.2 MB)
Approval and Adoption of Annual Report

DCC 41 staff copy

### ODT Online Sat, 5 Oct 2013
Staff numbers down, wage bill unchanged
By Debbie Porteous
The Dunedin City Council now has 41 staff earning more than $100,000, but spending on key management personnel is less than it was two years ago, chief executive Paul Orders says.
The council’s annual report for the year to June 30 showed that while the total number of council employees had declined, the council’s total annual wage and salary bill remained about the same. The report was published yesterday and will be considered at a full council meeting on Monday.
Mr Orders said overall the report revealed a series of positive trends. While staff numbers were reducing, service levels were being maintained.
Read more

● The DCC annual report shows a small operating surplus of about $8 million.
● It confirms the council’s consolidated debt – spread across the Forsyth Barr Stadium, the council and its companies – rose to $623 million, up from $616 million at the end of the 2011-12 financial year.
● The report notes 2012-13 was the last year of capital expenditure on a number of large debt-funded capital projects and upgrades.
● Core council debt is expected to continue to rise from $225 million at June 30 to peak at $272 million in 2015-16, before beginning a gradual decline.

Related Post and Comments:
26.9.13 DCC: Council consolidated debt $623 million

Posted by Elizabeth Kerr

10 Comments

Filed under Business, DCC, DCHL, Delta, Democracy, DVL, DVML, Economics, Politics, Project management, Property, Site, Sport, Stadiums, What stadium