Tag Archives: MORE RISK

Audit NZ true but pale in delivery?

### ODT Online Thu, 14 Jun 2012
Audit NZ warns of risks from debt, stadium
By Chris Morris
Rates hikes, increased debt levels or cuts to services remain a risk for the Dunedin City Council as it grapples with uncertainty over the Forsyth Barr Stadium, Audit New Zealand warns. The assessment came in two Audit NZ reports presented to the council’s finance, strategy and development committee yesterday. One report studied the council’s draft long-term plan for the next decade, to 2022, while the other scrutinised the council’s performance in the year to June 30, 2011.

Audit director Ian Lothian, in his long-term report, said council assumptions the stadium would cover its own costs and ensure rates were not affected remained a “high financial risk” to the council’s plans.

Stadium revenue projections were “as yet unproven”, dependent on income from rentals and sponsorships, and “still … a big assumption”, Lothian warned. The near-liquidation of the Otago Rugby Football Union highlighted the risks inherent in the stadium investment, he said.
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Report – FSD – 13/06/2012 (PDF, 1.1 MB)
Management Report from Audit New Zealand – Long Term Plan
Report – FSD – 13/06/2012 (PDF, 1.2 MB)
Management Report from Audit New Zealand – Year Ended 30 June 2011

The council fiasco widens. Keep indulging professional rugby (HPSNZ) why not.

### ODT Online Thu, 14 Jun 2012
Council to retain building
By Chris Morris
The Dunedin City Council has moved to retain direct ownership of High Performance Sport New Zealand’s Dunedin base. The move would see the council retain ownership of the $5.1 million building at Forsyth Barr Stadium, together with the land it sat on, worth $1.71 million. The council transferred the land to Dunedin Venues Ltd last year, and was to do the same with the building this month.
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Posted by Elizabeth Kerr

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