Tag Archives: Fubar

DCC makes no direct return from rugby or events held at Fubar Stadium

L A S T ● M O N T H ’S ● P R O N O U N C E M E N T ● F R O M ● A B O V E

ODT 20.6.17 (page 6)

ODT 26.6.17 (page 8)

Trevor Lloyd: Defeat of British rugby by the All Blacks in 1905 [pinimg.com]

Posted by Elizabeth Kerr

This post is offered in the public interest.

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ODT headline: ‘Stadium in the black, more to come’

TERRY AND BOARD !!!

Very difficult to be transparently and accountably in the black if your company DVML (Dunedin Venues Management Ltd) is HIGHLY SUBSIDISED by Dunedin ratepayers.

Cut us a break from incredulity.

### ODT Online Mon, 22 Feb 2016
Stadium in the black, more to come
By Chris Morris
The company running Dunedin’s Forsyth Barr Stadium has turned a $1 million loss into a six-figure profit, and is forecasting greater returns in future. The result came as the Dunedin City Council’s group of companies released their latest six-month reports and statements of intent, which will be discussed at today’s full council meeting.
Read more

Report – Council – 22/02/2016 (PDF, 314.9 KB)
Dunedin Venues Management Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 119.1 KB)
Dunedin Venues Management Ltd Draft Statement of Intent 2017

Report – Council – 22/02/2016 (PDF, 493.6 KB)
Dunedin Venues Ltd Six Months Financial Statements for the Period Ended 31 December 2015

Report – Council – 22/02/2016 (PDF, 50.3 KB)
Dunedin Venues Ltd Draft Statement of Intent 2017

>>> Off to the full council meeting, started at 1:00 pm
Council Chamber, Municipal Chambers

Posted by Elizabeth Kerr

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Daaave Cull keeps SPENDING on #impulse

…. “impulse” is the polite word for CRAP

The Laughing Stock With The Ermine, Clanking Gold Chains And Camel Shackles looks more and more RIDICULOUS as the Mayor of Dunedin.

There are screeds and screeds of cartoons to draw for —
Daaave’s definition of SUSTAINABILITY : Read STADIUM.

Try your very hardest not to laugh at the soft-arsed plonker – do you know what ANOTHER subcommittee costs to run, in terms of councillor, staff and politically appointed rank outsider* time and pay. It’s an outrage – and, for WHAT.

Daaave IS the “lunatic fringe”.
NEWS: He has a date with public stocks in the Octagon. Or we do it cleanly, and VOTE HIM OUT next election. Though how many of us can’t wait and would want to drive a bus erratically.

### dunedintv.co.nz February 11, 2015 – 7:20pm
Nightly interview: Dave Cull
A new subcommittee of the Dunedin City Council has been established, and will meet for the first time this week. The Sustainability Audit Subcommittee involves several councillors as well as Dunedin Mayor Dave Cull. And he joins us to talk about its purpose.
Video

Sustainability Audit Subcommittee Meeting
When: 12 Feb 2015 3:00pm (been and gone)
Where: Otaru Room, Civic Centre

Agenda – SAS – 12/02/2015 (PDF, 27.9 KB)

[Rort] Sustainability Audit Subcommittee Membership:
Janet Stephenson* (Chairperson), Mayor Dave Cull, Councillors David Benson-Pope and Jinty MacTavish, Gael Ferguson* and Brett Tomkins*

Related Post:
25.12.14 Daaave stole Christmas from #DUD
[re: Citifleet insurance scam/coverup, losing +152 vehicles and untold cash is REALLY sustainable]

Posted by Elizabeth Kerr

6 Comments

Filed under DCC, Media, Name, New Zealand, People, Politics, Stadiums

Stadium: Jeff Dickie on costs

Received from Jeff Dickie
Wednesday, 7 May 2014 11:15 a.m.

Subject: my rejected odt response

DCC’s CEO Sue Bidrose’s response to my stadium costs queries (ODT 15.3.14) are very disturbing. However, I have some sympathy for her as I know from personal experience, former CEO Paul Orders had huge difficulty finding such figures, due to a DCC culture of obfuscation. He did however identify $42M that the audit missed. How much did the audit cost? Why was such a huge amount missed?

Even if we accept Bidrose’s figures of $146M stadium debt, and $9.15M annual cost, which I don’t, the figures don’t add up. Just the interest on $146M, at say 6%, is $8.76M pa. For capital repayment over the 18.5 years the annual figure will be about the same again. Say together $17M pa. Add to this the stadium rates rebate now subsidised by general ratepayers to over $1M pa. That’s $18M. Add to this several more million dollars pa for propping up DVML and you are well over $20M pa!

Remember there was no $45M Private Funding or $10M from Otago University as promised. Apart from the three contributors below, everything is debt funded.

The DCC’s own stadium cost figure is $266M. Deduct $37.5M from ORC, less $7M Otago Community Trust, less $15M from the Government. I make that $206.5M, not Bidrose’s $146M. Funding $206.5M at 6% costs $12.39M pa just for interest, without any capital repayment. Say $25M pa for interest and capital. Add to this the huge annual DVML cost and the scale of the deception becomes apparent.

In summary, my figures point to well over double the official annual cost and around $60M more in stadium debt. In my opinion, neither the mayor, the CEO, or anyone else in the DCC has a clue what the real figures are. Now that’s worrying!

Jeff Dickie
Woodhaugh

[ends]

ODT 15.3.14 Letter to the editor (page 34)ODT 15.3.14 (page 34) from previous post [click to enlarge]

Posted by Elizabeth Kerr

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Privatising Highlanders involves DCC (ratepayer funds?)

Jeremy Curragh had been appointed by the NZRU to help co-ordinate the sale and would work with Highlanders and NZRU staff to go through the whole process.

Highlanders logo
### ODT Online Wed, 9 Apr 2014
Rugby: Curragh involved in privatising Highlanders
By Steve Hepburn
The man deeply involved in saving Otago rugby from liquidation a couple of years ago is now helping privatise the Highlanders. The wheels are slowly turning on the Highlanders’ move to private ownership although, as with the other four New Zealand franchises, the New Zealand Rugby Union will retain majority ownership. A local committee, headed by Otago Rugby Football Union chairman Doug Harvie, had also been formed and would provide local input into the process. Included on this committee were representatives from other interested parties such as other provincial unions and local authorities.
Read more

█ Remember Jeremy Curragh’s role in ORFU’s misuse of funds and accounting for the union’s black-tie dinner held at the Stadium ???

Related Posts and Comments:
10.2.14 University of Otago major sponsor for Highlanders
11.12.13 Highlanders “Buy Us” entertainment: Obnoxious, noxious PROFESSIONAL RUGBY —stay away DCC !!!
27.5.12 Again: Oh, Mr Curragh… [emails]
26.5.12 DIA media release
23.5.12 Latest: Oh, Mr Curragh… [emails]
20.5.12 Update: Oh, Mr Curragh… [emails]
18.5.12 Oh, Mr Curragh… [emails]
11.5.12 Dunedin shootout: mafia bosses
2.5.12 Ratepayers pay for ORFU black tie dinner at stadium
22.4.12 DIA, OAG, TTCF and Otago Rugby swim below the line
29.3.12 Dunedin City Council company sponsors Highlanders
23.5.12 Latest: Oh, Mr Curragh… [emails]
20.5.12 Update: Oh, Mr Curragh… [emails]
18.5.12 Oh, Mr Curragh… [emails]
2.5.12 Ratepayers pay for ORFU black tie dinner at stadium
22.4.12 DIA, OAG, TTCF and Otago Rugby swim below the line
23.3.12 ORFU position
9.3.12 DCC considers writing off ORFU’s $400,000 debt
14.12.11 Davies “in the middle of a conversation” – how to fudge DVML, DCC, ORFU and Highlanders
22.12.09 DCC appoints Highlanders’ Board representative [Kereyn Smith]
16.10.09 Highlanders news [Stuart McLauchlan]
1.7.09 NZRU swings governance of Highlanders
28.5.09 Highlanders board less Farry

Posted by Elizabeth Kerr

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DVML, ‘Money for jam…..fig jam’

Why does no-one want to discuss invoices created by DVML commercial manager Guy Hedderwick on his extensive travels, except for Dunedin campaigner Bev Butler? Who signed them off? Neville Frost (DVML finance manager) and Darren Burden (ex DVML chief executive). Why is Hedderwick at Adelaide working part-time for DVML when there’s an empty, brand new multimillion-dollar stadium sinking into the mire at Dunedin? Doesn’t Hedderwick also work for the Otago Rugby Football Union (ORFU)? What’s really happening?

Bev Butler [odt.co.nz] 2This morning we have seen media reaction to Bev Butler’s investigation into Guy Hedderwick’s expenses using the Local Government Official Information and Meetings Act (LGOIMA) to obtain invoices —we have also seen Otago Daily Times reporting various replies it has sought from the local burghers about this.

Some invoices show stays in five-star hotel rooms costing up to US$300 per night. There is a swathe of rib-eye steaks and expensive bottles of wine attending Hedderwick’s travel across the world and domestic.

█ What did Butler say in her Media Release to upset DVML finance manager Neville Frost (ex ORFU)? Find out below.

### ODT Online Sat, 22 Mar 2014
DVML head slams Butler’s allegations
By Chris Morris
Allegations of inappropriate spending by a former manager at Forsyth Barr Stadium have prompted an angry retort from the company running the venue. The claims came from former Stop the Stadium president Bev Butler in response to invoices and other documents released to her by Dunedin Venues Management Ltd, which runs the stadium. The material showed DVML’s former commercial manager, Guy Hedderwick, had accrued nearly $80,000 in travel costs and expenses while taking 51 work-related trips since 2010.
Read more

### ODT Online Sat, 22 Mar 2014
Company threatening to charge for OIA answers
By Chris Morris
The company running Dunedin’s Forsyth Barr Stadium is threatening to charge for future responses to official information requests after being inundated with questions from stadium critic Bev Butler. The move by Dunedin Venues Management Ltd was immediately slammed by Ms Butler yesterday, who said it was ”an attempt to keep me off their trail”.
Read more

MEDIA RELEASE Sunday 23 March 2014
By Bev Butler

MONEY FOR JAM…..FIG JAM

Ratepayers of Dunedin will once again be amazed with the news that they have paid over $80,000 for the activities of the “departed” commercial manager of DVML, Guy Hedderwick, to travel the world leading the life of Riley with little noticeable benefit.

Readers of some newspapers will have learned recently that Dunedin Venues Management Ltd (DVML), the Dunedin City Council owned company that runs the stadium, paid out over $54,000 in entitlements to former chief executive David Davies when he returned to Wales, and just on $30,000 when CEO Darren Burden left to run the Christchurch stadium after a year’s work with DVML. The amounts and details of any “entitlements” paid to DVML’s commercial manager were refused on the basis of Mr Hedderwick’s privacy after the DVML board chairman, Canterbury resident, Sir John Hansen was advised by DVML staff that Mr Hedderwick’s privacy outweighed public interest.

While these details remain hidden, what has surfaced is just what it has cost Dunedin ratepayers to keep Mr Hedderwick in the manner to which he clearly has become accustomed.

Mr Hedderwick left Dunedin around August of 2013 to pursue a role with DVML in Adelaide similar to the one he had in Dunedin; with arrangements in place that see DVML continuing to employ Mr Hedderwick and meet his expenses while he pursues his role of attracting acts and sponsors to the stadium. His efforts have been almost totally in vain. The only act to appear at the stadium since Mr Hedderwick has been living in Adelaide has been an Australian based franchised Abba look-alike band, Bjorn Again, who in their previous visit to Dunedin appeared at the Regent Theatre. The act attracted 3500 people to the stadium. It was reported at the time that while a similar event the year before had attracted twice this number, DVML were “pleased” at this response. The rationale for this pleasure is hard to fathom.

But the cost of Mr Hedderwick’s “work” has been, in contrast to his work achievements, simply staggering. The facts behind Mr Hedderwick’s spending have been revealed after constant requests for information by Bev Butler to Neville Frost, financial manager of DVML. The information has had to be teased out over a significant period of time, but now is starting to be revealed in some sunlight.

Mr Hedderwick’s travel, in his quest for acts and sponsors for the stadium, has taken him to:

● Italy
● Singapore
● USA
● Brisbane
● Gold Coast
● Sydney
● Melbourne
● Adelaide
● Auckland
● Wellington
● Christchurch
● Napier
● New Plymouth
● Rotorua
● Hamilton

The vast number of these visits has been listed as “seeking potential sponsors”. Sufficient to say that few new sponsors for the stadium have been notified by DVML or DCC. Mr Hedderwick also seems keen on attending “conferences” around the world. There is no indication or record of any significant contributions that Mr Hedderwick has made to such conferences, nor of any benefit whatsoever to DVML for such attendances.

But it is in Mr Hedderwick’s spending that some light shines upon what appears to be a lavish lifestyle endorsed and approved by Mr Neville Frost and Mr Darren Burden. It is neither reasonable nor justifiable for expenditure down to chewing gum and shaving gear at one end of the spending paradigm, to the luxury of five-star hotels and pursuit of fine wines – an interest of Mr Hedderwick according to his Facebook page* – that really takes the cake.

Mr Hedderwick has visited many of the above destinations on several occasions. The list supplied by Mr Frost for Mr Hedderwick’s travel outside Dunedin numbers 55 trips. However, there appear to be numerous invoices missing from the almost 300 invoices already supplied. Some invoices are for trips not actually listed; and some invoices are for five-star hotel bills (including The Hilton, The Sheraton, and Radisson Resort Gold Coast for as much as $US300 per night in some instances) and rental cars, but no flights to get to the destination. Yet other invoices include expensive meals, blocks of chocolate, boy’s t-shirts, hat and gloves.

With the recent Dunedin City Council announcement of a review of the governance and management of DVML, it would well be advised, in the interests of Dunedin ratepayers, for the council to include a full investigation of all the DVML finances especially the excessive personal expenditure of the DVML management.

Contact for further information:
Bev Butler
Ph (03) 477 6861

[ends]

*The Facebook page is in dispute, only because Neville Frost went to the wrong page. We refer our readers to Hedderwick’s recent writing (February 2014) for International Association of Venue Managers (IAVM):

### venuenet.iavm.org Mon, Feb 10, 2014 07:15 PM
I am number 9344728427550
By Guy Hedderwick, AEVP
I am number 9344728427550 or at least that is what my loyalty rewards card at my local food store says I am. I presume that large scale food stores issue customers with loyalty cards so they can reward them for their loyalty. I also imagine that it is a great way to collect buying habit information of individual customers so they can target them with relevant advertising, know exactly what products customers buy, when they buy them, monitor their buying patterns and treat them as individuals. […] We live in a small village outside Adelaide […] I am a Million dollar customer […] I wonder how I would be treated as a million dollar customer if I walked into your business.
Venues, along with their teams and ticket providers, have huge amounts of personal data and should understand the emotional reasons guest [sic] attend their events. I don’t really expect my local food store to know me by name, but I do expect to be treated with the dignity “my spend” should demand. There is a huge discussion about big data and the use thereof. How understanding buying patterns and buyer behaviour can be used to sell tickets, merchandise, seat upgrade and improve the customer experience. […] People no longer buy products or services, they buy experiences. We sell the live experience but we need to understand people’s motivations for coming, their behaviours and touch points in order to make the experience truly personal. Then I will happily part with my hard earned dollars. At the end of the day, entertainment and sport (along with good wine) is what makes life worth living.
I am not number 9344728427550, I am Guy Hedderwick and I want to feel like a million dollar customer.
Read full article

● Guy Hedderwick at LinkdIn
● Guy Hedderwick at Twitter @GuyHedd
● Guy Hedderwick (GuyHedd) at Facebook

Guy Hedderwick is now General Manager of Arena Stadium Management Pty Ltd (ASM). He took up the appointment at the privately owned Adelaide Arena in 2013. ASM is Adelaide Arena’s new management company formed by joint owners Scouts Stadium Incorporated and Savethearena Pty Ltd. (Link)

Related Post and Comments:
5.3.14 Stadium: Mayor Cull stuck in his rut, ‘going forward’
4.3.14 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)
24.1.14 Stadium: It came to pass… [stadium review]
30.11.13 DVML in disarray
14.11.11 DVML, Guy, wth ?
26.9.11 Donations – the quest for clarification
26.9.11 Private sector funding (donations) to stadium construction
12.9.11 Stadium: Private sector funding
9.2.11 DCC and DCHL, was there ever any doubt?
5.11.10 International connections
16.2.10 Owing $45.5 million in private sector funding
5.2.10 Commercial manager Guy Hedderwick on stadium sponsorship

For more, enter *dvml*, *hedderwick*, *burden*, *davies*, or *stadium* in the search box at right.

Posted by Elizabeth Kerr

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ORFU: Black-tie dinner, theft or fraud?

Dave Goosselink Tweets 17.3.14[screenshot]

• Dave Goosselink — Dunedin face (and voice) for TV3 News & Sports
• Samuel Gilchrist — social media handler for The Highlanders @Highlanders

Retweets by @whatifdunedin and @SearleJamie
• Jamie Searle — Southland Times racing reporter

Correspondence received.
Wednesday, 19 March 2014 10:58 a.m.

From: Bev Butler
To: Steve Tew [NZRU]; Doug Harvie [ORFU]
CC: Murray Kirkness [ODT]; Steve Hepburn [ODT]; Rebecca Fox [ODT]; Ian Telfer [RNZ]
Subject: Black-tie dinner bill to be paid?
Date: Wed, 19 Mar 2014 10:56:35 +1300

Wednesday 19th March 2014

Dear Steve

The following was posted on a local blogsite “What If Dunedin”.

“The conscience of the ORFU is totally absent. The normal procedure for staging an event such as the black-tie dinner is to budget all costs, set the entrance fees to cover those costs and establish a profit level. That is both normal and straightforward – some I’m sure, would say honest, business practice..

The way the ORFU operated was to set the costs, pay out the organiser – who just happened to be the wife of Laurie Mains – ignore the costs and bank the difference. Can anyone tell me that if this scenario happened with anyone else other than the dear old rugby-mad idiots on the Council involved, would this be tolerated? Not on your nelly. Can anyone tell me why this isn’t either theft or fraud?” *

What especially interests me about this post is the question posed as to whether theft or fraud is involved.
It feels like it to me but I’m not sure whether it would hold up in a court of law.
Maybe it could…maybe it couldn’t.
My limited understanding of the Crimes Act is that the hardest part to prove is intent.
In the case of the black-tie dinner, did the ORFU have any intent on paying the bill?
In my opinion, if they did they would have paid it when they received the money from the guests – because obviously it was the intent of the guests for their money to be paid for their evening out.
What do you think, Steve? I’d appreciate your view on this.

I noticed on twitter, media and rugby officials tweeting about this issue.
Strange how the Highlanders’ social media official, Samuel Gilchrist, refers to me as a ‘warmonger’ because I am asking for some honesty from the ORFU. The problem down here is that there is no decent leadership in rugby and hasn’t been for years.
We have Roger Clark as the current CEO of The Highlanders – he was the CEO of Southland Rugby Union at the time when they
they owed over $100,000 in booze. I fear that nothing much has changed.

I had hoped that with the new ORFU board that some leadership would be shown over the black-tie dinner scandal but, to date, that hasn’t happened. Change needs to come from the top so that people like Samuel Gilchrist understands that it is not okay to run off without paying your bills. He doesn’t seem to be able to figure this out for himself. I guess when things have been bad down here for so long those who can’t think for themselves look to the leaders for guidance which is lacking.

That is why I have turned to you, Steve, to finally show some leadership and right this wrong.

I hope I don’t have to continue to prod any deeper.

Yours sincerely
Bev Butler

Previous letter to Steve Tew deleted, read it here

[ends]

*Link to source

Related Posts and Comments:
17.3.14 ORFU: Black-tie dinner on ratepayers
14.3.14 ORFU flush to pay creditors

For more, enter the terms *orfu*, *dinner*, *jeremy curragh*, *bailout*, *martin legge*, *dia*, *pokies*, *jokers*, *ttcf*, or *pokie rorts* in the search box at left.

Posted by Elizabeth Kerr

6 Comments

Filed under Business, DCC, Democracy, DVML, Economics, Events, Hot air, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums

Jeff Dickie: Stadium rates burden

Copy received [click to enlarge]

ODT 15.3.14 Letter to the editor (page 34)ODT 15.3.14 Letter to the editor (page 34)

Posted by Elizabeth Kerr

Leave a comment

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ORFU: Black-tie dinner on ratepayers

Correspondence received.
Monday, 17 March 2014 9:28 a.m.

From: Bev Butler
To: Steve Tew [NZRU]; Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]; Rebecca Fox [ODT]; Murray Kirkness [ODT]; Ian Telfer [RNZ]
Subject: FW: ORFU board responsible for paying the black tie dinner bill
Date: Mon, 17 Mar 2014 09:26:55 +1300

Monday 17th March 2014

Dear Steve

It is a while since we corresponded and Doug [Harvie] has indicated he doesn’t intend to respond any further (always best to keep the lines of communication open when in a leadership role) so thought I would let you in on the current situation of the ORFU.
Please read from the bottom up and then read the rest of this email.

Either Doug doesn’t fully appreciate the situation or is just hoping the issue will go away.
Let me explain the situation from a different perspective so that both you and Doug may have a deeper understanding of the full implications.

Let’s say that you and Doug decide to borrow a considerable amount of money to build a new restaurant with a state of the art glass roof. Absolutely stunning – is going to be just wonderful for me to conduct my business dealings there. Just days after your restaurant opens I come along and make a booking for 350 guests. Unfortunately, my business hasn’t been going that well so am using your new restaurant to have a fund-raising dinner. I employ one of my close friends, Elly-May, to organise the dinner for my business. She sells tickets for this dinner for $250 each. Now 350 guests at $250 each is $87,500. You charge me about $75 per guest – a total of about $26,000. Now after the event I pay my close friend Elly-May about $10,000 and have a few other expenses which leave me with a ‘profit’ of $52,000. BUT instead of paying you the $26,000 I put the lot in my ‘pot’ and cry that I’m poor. You and Doug were such wonderful hosts, our guests were well fed, plenty of booze and cleaned up after us. Thanks for that.

One of your colleagues gets a bit shirty and accuses me of being dishonest. How dare him [sic]. I just wanted to spend the money on something else – I had other bills to pay even though my 350 guests were under the impression they were paying for the night out I just wanted to use the money for something else. Done it before – ask Jeremy Curragh. Well. I have some very important friends, you know. So I get them to sue him for defamation. Felt good when your colleague had to apologise.

Do you really think I have acted honestly and with integrity?

Now do you understand why the Dunedin ratepayers are still angry about this?
I am still being approached by people (as recently as yesterday – some of them rugby coaches) upset by the ORFU’s actions.

I suggest you two have a chat and do the right thing and pay this bill now that the ORFU have announced a ‘profit’ for the year. Someone needs to show some leadership over this. The Dunedin community deserve better. Personally I believe you have a moral obligation to pay this bill and set this wrong right. It is but a small gesture for the many indiscretions perpetrated by the ORFU on the Dunedin community.
Some people in the Dunedin community think that the ORFU are rotten to the core but I don’t actually agree with them. I am an optimist at heart and believe that there is human decency in everyone. In the ORFU’s case it just requires a bit of deeper prodding.

The ORFU have a moral obligation to show some human decency and pay this bill. It is a matter of principle. I will not be silenced on this. You have my word on that.

Yours sincerely
Bev Butler

—————————–

From: Bev Butler
To: Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Fri, 14 Mar 2014 09:43:19 +1300

Dear Doug

Saying that “ALL creditors have been satisfied in full, in one way or another” is not the same as saying that all creditors have been PAID in full.
I know it is uncomfortable for you to be reminded of this but it still does not excuse the ORFU from doing the decent thing and paying their obscene black-tie dinner given they already had the money but decided to pocket it instead.
How about showing some decency or goodwill towards those that bailed you out of your financial mess now that you are flush with $406,859 profit?

Yours sincerely
Bev Butler

—————————–

From: Doug Harvie [ORFU]
To: Bev Butler
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Thu, 13 Mar 2014 20:16:32 +0000 [sic]

You have your facts wrong Bev – ALL creditors of ORFU have been satisfied in full, in one way or another.

I will not be responding to any further correspondence on this matter.

D J Harvie

Partner
Harvie Green Wyatt

(P O Box 5740, Dunedin 9016, New Zealand. Phone +64 3 4775005 or +64 21 2234169. Fax +64 3 4775447

—————————–

From: Bev Butler
Sent: Friday, 14 March 2014 7:32 a.m.
To: Doug Harvie [ORFU]
Cc: Steve Hepburn [ODT]
Subject: ORFU board responsible for paying the black tie dinner bill

Friday 14th March 2014

Dear Doug

In today’s ODT the ORFU have reported a profit of $406,859 for the 2013 financial year and a profit of $134,656 for the 2012 financial year. Part of this so called profit is just pocketing of monies from unpaid bills.

As you are fully aware, the ORFU ran up a DVML bill of $25,352 for their black tie fund raiser at the stadium on 5th August 2011. This was for food, booze, soft drinks and cleaning.

Not only did the ORFU run off without paying this bill but the ORFU paid no venue hire for this brand new venue. Then to top it off the ORFU pocketed $52,000 from this fundraising event into their ‘pot’ which then is reported as profit for the 2012 financial year.

The fact that the ORFU then pressurised the Council to ‘write it off’ does not excuse the ORFU from the moral obligation to pay this bill.

I was quoted in the ODT as saying this was ‘obscene’. It is like booking a large restaurant, gorging yourselves on all their food and drink and hospitality then doing a runner.

It is ‘obscene’ and I expect this bill to be paid in full.

Laurie Mains, and his wife, Anne-Marie, refused to answer questions as to whether Anne-Marie was paid for her services in organising this event. I actually have no problem with her charging for her professional services. What I do have a problem with is that it is standard practice for professional event organisers to ensure all outstanding bills are paid before the ‘surplus’ is paid to the organisation. This did not happen. I don’t know whether Anne-Marie was paid $10,000, $12,000 or even more but whatever the amount the issue is that the other bills should have been paid first.

I fully expect this bill to be paid as the ORFU did actually have sufficient funds to pay this bill as evidenced by the reported profit of $134,656 for the 2012 financial year.

I also remind you that the $350 guests to this black-tie dinner paid $250 per ticket which would have been paid with the understanding that this would cover the costs. When a function such as this is organised, the ticket price is to cover the costs of the meal, venue hire, cleaning etc. Once the bills are paid, then any surplus is genuine ‘profit’ and the organisation then can legally pocket this ‘profit’.

The fact that the ORFU pocketed this money instead of paying their bill is unacceptable.

It is time the ORFU did the decent thing and pay this bill.

Yours sincerely

Bev Butler

[ends]

Posted by Elizabeth Kerr

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Mayoral DISGRACE: DCC won’t ask ORFU to repay $480K bailout

Related Posts and Comments:
14.3.14 ORFU flush to pay creditors

The Otago Rugby Football Union has recorded a $406,800 profit, just over two years after it faced going out of business because of debts of more than $2 million. The union now has reserves of more than $500,000, and is predicting a small profit for the coming year. […] When asked whether the union would consider repaying some creditors who lost money when the deal was agreed to save the union from liquidation, Union chairman Doug Harvie said that would not happen. (ODT 14.3.14)

24.5.12 ORFU board announced

The recovery package involved the NZRU providing a long term loan for working capital of $500,000 and Dunedin City Council writing off debt of $480,000. In addition, costs have been cut and additional sponsorship arranged. […] Almost $500,000 has been raised to allow the union to settle with creditors. A total of 156 non-profit organisations and other creditors who are all owed less than $5,000 will be paid in full. The remaining 24 creditors will be repaid the first $5,000 and half of what they are owed above that. The repayments are due to be made by the end of the month. (ODT 24.5.12)

Copy received. ODT 15.3.14 (page 14)

ODT 15.3.14 (page 14)

For more, enter the terms *orfu*, *dinner*, *jeremy curragh*, *bailout*, *martin legge*, *dia*, *pokies*, *jokers*, *ttcf*, or *pokie rorts* in the search box at left.

http://www.odt.co.nz/news/dunedin/295236/council-will-not-welsh-deal

Posted by Elizabeth Kerr

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ORFU flush to pay creditors

When asked whether the union would consider repaying some creditors who lost money when the deal was agreed to save the union from liquidation, Union chairman Doug Harvie said that would not happen.

### ODT Online Fri, 14 Mar 2014
Profit pleases ORFU
By Steve Hepburn
The Otago Rugby Football Union has recorded a $406,800 profit, just over two years after it faced going out of business because of debts of more than $2 million.
The union now has reserves of more than $500,000, and is predicting a small profit for the coming year. […] In March 2012, the union was a few days away from going out of business, with debts of $2.2 million and creditors failing to come to agreement. But a rescue package was nailed down and the union traded its way out of difficulty, albeit with some concessions from creditors.
Read more

****

Correspondence received.

From: Bev Butler
To: Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]
Subject: ORFU board responsible for paying the black tie dinner bill
Date: Fri, 14 Mar 2014 07:31:59 +1300

Friday 14th March 2014

Dear Doug

In today’s ODT the ORFU have reported a profit of $406,859 for the 2013 financial year and a profit of $134,656 for the 2012 financial year. Part of this so called profit is just pocketing of monies from unpaid bills.

As you are fully aware, the ORFU ran up a DVML bill of $25,352 for their black tie fund raiser at the stadium on 5th August 2011. This was for food, booze, soft drinks and cleaning.

Not only did the ORFU run off without paying this bill but the ORFU paid no venue hire for this brand new venue. Then to top it off the ORFU pocketed $52,000 from this fundraising event into their ‘pot’ which then is reported as profit for the 2012 financial year.

The fact that the ORFU then pressurised the Council to ‘write it off’ does not excuse the ORFU from the moral obligation to pay this bill.

I was quoted in the ODT as saying this was ‘obscene’. It is like booking a large restaurant, gorging yourselves on all their food and drink and hospitality then doing a runner.

It is ‘obscene’ and I expect this bill to be paid in full.

Laurie Mains, and his wife, Anne-Marie, refused to answer questions as to whether Anne-Marie was paid for her services in organising this event. I actually have no problem with her charging for her professional services. What I do have a problem with is that it is standard practice for professional event organisers to ensure all outstanding bills are paid before the ‘surplus’ is paid to the organisation. This did not happen. I don’t know whether Anne-Marie was paid $10,000, $12,000 or even more but whatever the amount the issue is that the other bills should have been paid first.

I fully expect this bill to be paid as the ORFU did actually have sufficient funds to pay this bill as evidenced by the reported profit of $134,656 for the 2012 financial year.

I also remind you that the $350 [sic] guests to this black-tie dinner paid $250 per ticket which would have been paid with the understanding that this would cover the costs. When a function such as this is organised, the ticket price is to cover the costs of the meal, venue hire, cleaning etc. Once the bills are paid, then any surplus is genuine ‘profit’ and the organisation then can legally pocket this ‘profit’.

The fact that the ORFU pocketed this money instead of paying their bill is unacceptable.

It is time the ORFU did the decent thing and pay this bill.

Yours sincerely

Bev Butler

——————————

From: Doug Harvie [ORFU]
To: Bev Butler
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Thu, 13 Mar 2014 20:16:32 +0000

You have your facts wrong Bev – ALL creditors of ORFU have been satisfied in full, in one way or another.

I will not be responding to any further correspondence on this matter.

D J Harvie
Partner

Harvie Green Wyatt
(P O Box 5740, Dunedin 9016, New Zealand. Phone +64 3 4775005 or +64 21 2234169. Fax +64 3 4775447

——————————

From: Bev Butler
To: Doug Harvie [ORFU]
CC: Steve Hepburn [ODT]
Subject: RE: ORFU board responsible for paying the black tie dinner bill
Date: Fri, 14 Mar 2014 09:43:19 +1300

Dear Doug

Saying that “ALL creditors have been satisfied in full, in one way or another” is not the same as saying that all creditors have been PAID in full.
I know it is uncomfortable for you to be reminded of this but it still does not excuse the ORFU from doing the decent thing and paying their obscene black-tie dinner given they already had the money but decided to pocket it instead.
How about showing some decency or goodwill towards those that bailed you out of your financial mess now that you are flush with $406,859 profit?

Yours sincerely
Bev Butler

[ends]

For more, enter the terms *orfu*, *dinner*, *jeremy curragh*, *bailout*, *martin legge*, *dia*, *pokies*, *jokers*, *ttcf*, or *pokie rorts* in the search box at left.

Posted by Elizabeth Kerr

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Carisbrook Stadium Trust: Financial statements for the year ended 30.6.13

Received via Bev Butler
Wednesday, 12 March 2014 1:48 p.m.

The CST’s latest financial accounts – link to full financial statements and a copy of the summary below [click to enlarge].

CSCT Summary

Source:
[enter in your browser] *Carisbrook Stadium CT 30.6.13 signed Accounts.pdf*

Download: Carisbrook Stadium CT 30.6.13 signed Accounts (PDF, 255 KB)

For more, enter the terms *cst*, *csct*, *carisbrook*, *charitable*, *trust*, or *farry* in the search box at right.

Posted by Elizabeth Kerr

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Carisbrook Stadium Trust subject to LGOIMA

Received from Bev Butler
Thursday, 6 March 2014 5:27 p.m.

MESSAGE TO MEDIA WATCHING THIS BLOGSITE

Malcolm Farry has been misinforming media about the CST being subject to the Local Government Official Information and Meetings Act (LGOIMA).
Farry is incorrect when he states that the Carisbrook Stadium Charitable Trust (CST) is not subject to LGOIMA.
Attached are two legal opinions which both state that the CST is subject to the provisions of LGOIMA.
These were released to me by Paul Orders, former CEO of the Dunedin City Council (DCC), after I made a complaint to the Ombudsman.

In July 2008 I was making requests under LGOIMA about the stadium and was informed by the then CEO, Jim Harland, that the CST was not subject to LGOIMA. What Harland failed to tell me was that he had sought two legal opinions both of which state that the CST is subject to LGOIMA.

When I produced Harland’s email to the Ombudsman, the Ombudsman recommended that the Council release these opinions to me. Hence the attached legal opinions. It is not often that legal opinions are released because of legal priviledge but I guess in this case I had proved I was misled. It was part of the deceipt of withholding vital information from the public so that they could push the project through against the will of the community.

They lied from start to finish with this project and filled their pockets along the way –that’s why myself and others will continue to expose what happened. The whole process was so bloody cynical.

Returning to Farry, CST and LGOIMA, it is also clear under the Public Records Act 2005 that the Council is required to maintain full records etc as outlined below:

PUBLIC RECORDS ACT 2005
Requirement to create and maintain records

(1) Every public office and local authority must create and maintain full and accurate records of its affairs, in accordance with normal, prudent business practice, including the records of any matter that is contracted out to an independent contractor.

(2) Every public office must maintain in an accessible form, so as to be able to be used for subsequent reference, all public records that are in its control, until their disposal is authorised by or under this Act or required by or under another Act.

(3) Every local authority must maintain in an accessible form, so as to be able to be used for subsequent reference, all protected records that are in its control, until their disposal is authorised by or under this Act.

————————————————

From: Sandy Graham [DCC]
To: Bev Butler
CC: Letitia Parry @ombudsmen.parliament.nz
Date: Wed, 15 Feb 2012 16:04:50 +1300
Subject: Bev Butler re legal opinions – 14 Feb 2012.pdf – Adobe Acrobat Professional

Dear Bev

Please find attached the information regarding the LGOIMA peer reviews.

Regards
Sandy

DCC Letter to BButler 14.2.12

Full download: Bev Butler re legal opinions – 14 Feb 2012 (PDF, 949 KB)
• Cover letter from Paul Orders 14.2.12 (1 page)
• Letter from Anderson Lloyd 18.9.08 (3 pages)
• Letter from Simpson Grierson 25.9.08 (5 pages)

[ends]

For more, enter the terms *cst*, *csct*, *carisbrook*, *stadium*, *farry*, or *harland* in the search box at right.

Posted by Elizabeth Kerr

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Stadium: Fairfax business editor pokes DCC’s Fubar

### stuff.co.nz Last updated 05:00 05/03/2014
Business
Empty seats, empty pockets
By Chalkie
[…] Chalkie is concerned by a $48 million scheme to build a stadium in Petone for the benefit of the Phoenix A-League football team and its fans. From what we know of the proposal, the Hutt City Council – which means ratepayers – will be asked to contribute $25m towards building a “boutique” 10,000 to 12,000 seat arena at the southern end of the Petone Recreation Ground. […] The good burghers of the Hutt will be best placed to judge the practicalities of the scheme when further details are available, but the financial side has worrying similarities to the set-up of Forsyth Barr Stadium in Dunedin. Arm’s length charitable trust controlling the budget? Check. Private sector funding promised? Check. Troubled sports franchise as anchor tenant? Check.

[…] In Dunedin, those involved in developing the city’s shiny new covered stadium are far from universally popular after ratepayers ended up with huge debts and an ongoing headache from running the thing. The original idea, itself controversial, was for ratepayers to contribute $129m – split between $91.4m from the city council and $37.5m from the regional council – towards the $188m cost of the stadium, with private sector funding contributing $45.5m. The balance was coming from local trusts and a government grant. In the end, the stadium cost $224m and the ratepayers were hit up for $200m of that. The private sector funding was virtually zero.

You could write a book on the series of failures that left a relatively small number of people – Dunedin has a population of about 126,000 – exposed to such high costs. But even in the short version written by PricewaterhouseCoopers it seems councillors were not well informed about the project and financial controls were inadequate. The controversy still simmers. Local campaigner Bev Butler, a determined and resourceful opponent of the stadium scheme, continues to unearth aspects of the process that do not reflect well on its management. One of the latest involves the relationship between Carisbrook Stadium Charitable Trust, which runs the project, and the council.

The problem in this instance is the lack of transparency around public spending, even when there was obviously concern at the outset to keep a firm grip on it. More than that, Dunedin got in over its head and allowed itself to be the schmuck landed with everyone’s bill at the end.

Money from the council was supposed to be transferred to the trust only to pay for third-party invoices billed to the trust. An exception to this rule provided for the trust’s administration costs to be covered by a general monthly payment from the council. These “trust costs” invoices were for between $40,000 and $90,000 a month, running from July 2007 to January 2010. According to Butler’s information, which tallies with the council schedule, the payments totalled $2.2m over the period. An Official Information Act response from the council to Butler said the money was paid “to cover staff and administration costs” of the trust “to facilitate ease of administration”.

Chalkie can see that it would be easier to pay for the trust’s incidentals in this way. However, it opened a big hole in accountability for spending because the staff and administration costs detailed in the trust’s annual reports for the period total $1,068,796, more than $1m less than the sums invoiced. It is not clear from the accounts how the other $1.1m was spent because no combination of other costs – marketing, PR, fundraising or project administration – seems to come close to the right figure. Chairman of trustees Malcolm Farry told Chalkie he could provide documents to clarify the details last week, but unfortunately they were not yet available as we went to press.

There are several lessons for the Hutt City Council, including to beware of using a charitable trust as the development vehicle, to ensure private sector money is paid up front with a buffer for contingencies, and to ensure there is no ambiguity about costs.
Read full article

● Chalkie is written by Fairfax business bureau’s Tim Hunter.

Related Posts and Comments:
24.2.14 Carisbrook Stadium Trust: ‘Facts about the new Stadium’ (31.5.08)
22.2.14 Carisbrook Stadium Trust costs

Posted by Elizabeth Kerr

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Stadium: Mayor Cull stuck in his rut, ‘going forward’

Copy supplied. ODT 5.3.14 (page 16)

Plainly, the five million-dollar DCC Spooks have taught Cull nothing. What a loser. Here he is being tersely rude to a respected, independent-thinking Otago regional councillor – in full public view.

Mr Cull, you’re not fit to be leading the city council.
Through gross negligence, and more, the Dunedin City Council has taken hundreds of millions of dollars from city ratepayers by false representation and other means. You’re continuing to spend, at the same time you’re set to undermine and offload our community assets. Stop ripping off The People.

We don’t deserve you as mayor. Resign.

ODT 5.3.14 Letter to the editor (page 16)

Related Posts and Comments:
4.3.15 Bev Butler: Guy Hedderwick’s departure package (LGOIMA)
27.2.14 Stadium: a conversation
26.2.14 DCC: New audit and risk subcommittee a little too late !!
26.2.14 Stadium costs, read uncapped multimillion-dollar LOSSES
22.2.14 Carisbrook Stadium Trust costs
11.2.14 Stadium: ‘Business case for DVML temporary seating purchase’
24.1.14 Stadium: It came to pass . . .
20.12.13 DVML: No harassment policy or complaints procedure, really?
3.12.13 DVML issues and rankles [Burden’s reply]
30.11.13 DVML in disarray
18.11.13 DVML: Burden heads to Christchurch #EntirelyPredictable
12.10.13 DVML works media/DCC to spend more ratepayer money
4.10.13 DVML . . . | ‘Make the stadium work’ losses continue
20.8.13 DVML foists invoices on DCC
19.8.13 Cull on senility (firing up graduates)
20.6.13 Stadium: DVML, DVL miserable losers! #grandtheftdebt

For more, enter *cull* in the search box at right.

Posted by Elizabeth Kerr

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Bev Butler: Guy Hedderwick’s departure package (LGOIMA)

Received from Bev Butler
Tuesday, 4 March 2014 12:21 p.m.

Subject: LGOIMA request: Guy Hedderwick’s departure package

Feel free to put up my LGOIMA requests below and attached re Hedderwick’s departure package and the subsequent responses.
I noticed MikeStk at ODT comments said Hedderwick may have been paid a performance payment.

{Some personal contact details have been removed. -Eds}

From: Bev Butler
Sent: Friday, 24 January 2014 10:05 AM
To: Neville Frost [DVML]
Subject: LGOIMA request: Guy Hedderwick’s departure package

Friday 24th January 2014

Dear Neville

I request the following:

1. On what date did Mr Guy Hedderwick depart from his full time position as Commercial Director of DVML?

2. How much did Mr Guy Hedderwick receive as a payout on his departure? Please itemise the reasons for each portion of his payout.

3. How much of Mr Guy Hedderwick’s departure payout was extra to the entitlements outlined in his contract?

4. Who authorised Mr Guy Hedderwick’s departure payout?

5. Did the DVML board also authorise the departure payout and if so was the departure payout authorised by the full DVML board or just the board Chair, Sir John Hansen?

6. Please supply the minutes of the DVML board meeting (including the names of all present) where Mr Guy Hedderwick’s departure payout was authorised.

Yours sincerely

Bev Butler

——————————————

From: Kim Barnes [DVML]
To: Bev Butler
CC: Neville Frost [DVML]
Subject: LGOIMA request: Guy Hedderwick’s departure package
Date: Fri, 31 Jan 2014 03:31:56 +0000

Dear Bev

Thank you for your email dated 24 January 2014. Please find attached a copy of the original letter which will be posted to you.

Please acknowledge receipt of this email.

Yours sincerely

Kim Barnes
Marketing & Communications Manager

DDI +64 3 4794399 • M +64 27 5452545
E kim.barnes @ dunedinvenues.co.nz
130 Anzac Avenue, PO Box 5506, Dunedin 9058
T +64 3 479 2823 • F +64 3 471 7436 • www. dunedinvenues.co.nz

——————————————

From: Bev Butler
Sent: Sunday, 2 February 2014 10:09 p.m.
To: Neville Frost [DVML]
Cc: Kim Barnes [DVML]
Subject: Re: LGOIMA request: Guy Hedderwick’s departure package

Monday 3 February 2014

Dear Neville

Thank you for your letter dated 31 January 2014 re Guy Hedderwick’s departure package.

Just a few points of clarification required.

In Question 3: “How much of Mr Guy Hedderwick’s departure payout was extra to the entitlements outlined in his contract?”

Your response was “Mr Hedderwick received his contractual salary entitlement and holiday pay.”

Would you please clarify whether

(a) Mr Guy Hedderwick received any payments extra to the entitlements outlined in his contract;

(b) If so, how much were these extra payments and what were the reasons for these extra payments;

(c) Who authorised these extra payments?

In Question 2: “How much did Mr Guy Hedderwick receive as a payout on his departure? Please itemise the reasons for each portion of his payout.”

Your response was “Mr Hedderwick received his contractual salary entitlement and holiday pay.”

Your response has not answered the request for the amount Mr Guy Hedderwick received as a payout on his departure so please state the amount and reason for each amount as requested.

I remind you that as an organisation accountable for public money there is a keen public interest in how this public money is spent. I also remind you that the final payment to Mr Shamrith Paul, CEO Otago Museum, was made public so there is no reason why Mr Guy Hedderwick’s departure package is not also made public.

Yours sincerely

Bev Butler

——————————————

From: Kim Barnes [DVML]
To: Bev Butler
CC: Neville Frost [DVML]
Subject: RE: LGOIMA request: Guy Hedderwick’s departure package
Date: Fri, 21 Feb 2014 21:01:51 +0000

Dear Bev

Thank you for your email dated 2 February 2014. Please find attached a copy of the original letter which will be posted to you.

Please acknowledge receipt of this email.

Yours sincerely

Kim Barnes
Marketing & Communications Manager

DDI +64 3 4794399 • M +64 27 5452545
E kim.barnes @ dunedinvenues.co.nz
130 Anzac Avenue, PO Box 5506, Dunedin 9058
T +64 3 479 2823 • F +64 3 471 7436 • www. dunedinvenues.co.nz

Download: BButler 180214

BButler 180214 pdf

[ends]

Posted by Elizabeth Kerr

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Dunedin’s social housing need —they built a bastard stadium

State housing 1aDunedin civic leaders built a ‘bastard stadium’ instead of making the conscious decision to look after our most vulnerable citizens.

The increasing cost of private rental accommodation in Dunedin has seen the demand for social housing rise during the past six months, with Housing New Zealand housing one family a day during that time.

The amount of money people needed just to get in the front door of a private rental was out of reach for many families.
–Nicola Taylor, Anglican Family Support

### ODT Online Sun, 2 Mar 2014
State housing in demand
By Tim Miller – The Star
Unaffordable rental property in Dunedin is driving lower-income families into social housing, with one property manager saying the situation could get worse if rental properties are required to lift their standards.
Increased demand has seen the waiting list of families waiting for one of Dunedin’s 1451 state houses increase to 64.
Read more

****

### radionz.co.nz Friday 28 February 2014
Nine to Noon with Kathryn Ryan
http://www.radionz.co.nz/national/programmes/ninetonoon
09:08 Revised statistics reveal true extent of elderly poverty
Roy Reid, president Grey Power New Zealand Federation; and Jonathan Boston, professor of public policy at Victoria University and co-chair of the Expert Advisory Group on Solutions to Child Poverty.
Audio | Download: Ogg   MP3 ( 23:33 )

****

The Accommodation Supplement available to low income people and beneficiaries has not been raised for NINE YEARS.

This fact, of course, doesn’t and won’t stop upwardly mobile Dunedin landlords (many of them absentee) seeking capital gains and higher rents, while exercising tax avoidance under current legislation —there are insufficient casual, part-time and full-time jobs available in the city to service increasingly high rents (income poverty). With the result Dunedin renters in genuine need are being severely squeezed — this impacts on the health and wellbeing of individuals, couples and families, placing a long-term cost burden on the rest of society. Not surprisingly, the number of homeless people is rising. Meanwhile, the mayor, the council chief executive and friends are skooting off to China on junkets, in the time-honoured tradition of the Old Dunedin CARGO CULT.

Accommodation Supplement is a weekly payment which helps people with their rent, board or the cost of owning a home.

You may get an Accommodation Supplement if you:
• have accommodation costs
• are aged 16 years or more
• are a New Zealand citizen or permanent resident
• normally live in New Zealand and intend to stay here
• are not paying rent for a Housing New Zealand property.

It also depends on:
• how much you and your spouse or partner earn
• any money or assets you and your spouse or partner have.

How much you will get on the Accommodation Supplement will depend on:
• your income
• your assets
• your accommodation costs
• your family circumstances
• where you live.

For more information go to:
http://www.workandincome.govt.nz/individuals/a-z-benefits/accommodation-supplement.html

Posted by Elizabeth Kerr

*Image: odt.co.nz – State Housing (re-imaged by whatifdunedin)

19 Comments

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Stadium: a conversation

(tonight at What if?)

Anonymous:
Ask Harlene: how well-developed is the university plan to acquire the stadium? As in “take it off your hands no trouble Guv” as opposed to buy it for book value. Just asking.

Elizabeth:
Ask the winkler Stuart McLauchlan.

Posted by Elizabeth Kerr

30 Comments

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Forsyth Barr ‘should be booted’

Link supplied.

### 3news.co.nz Mon, 11 Mar 2013 10:48a.m.
Forsyth Barr to stay on Mighty River panel
The Government’s rejecting a call to remove Forsyth Barr from the panel running the selldown of Mighty River Power despite a Commerce Commission ruling critical of the company’s past. In a decision last week, the Commerce Commission said Forsyth Barr and French investment bank CALYON were “misleading and deceptive” in their marketing of $91.5 million in Credit SaILS bonds to investors in 2006. The product promised 8.5 percent interest income and capital protection – but Credit SaILS failed in 2008, and the bonds are now virtually worthless. The companies have reached a settlement with the Commerce Commission to create a settlement fund of $60m to be distributed to investors.
Economics writer Bernard Hickey says Forsyth Barr should be booted from the panel overseeing Mighty River’s float, saying its involvement risks undermining confidence in the sale.
Read more

Posted by Elizabeth Kerr

10 Comments

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