Tag Archives: PPP

DCC broke → More PPPs to line private pockets and stuff ratepayers

Think ‘New Mosgiel Pool’, put the cost back on the Community!
But wait… “WE CAN HELP” says ex councillor Syd (aka The Slid).

### NZ Herald Online 5:30 AM Thursday Jan 30, 2014
PPPs short-term gain but long-term pain
By Tony Holman
OPINION Mayor [Len] Brown has had another vision and is claiming public-private partnerships (PPPs) can relieve the burden on ratepayers. I wonder if he has done his homework. It’s not a vision, it’s a mirage. PPPs are joint ventures between government, or local government, and companies to build major projects such as bridges, tunnels and underground rail – and, in Britain, also hospitals. Too often PPPs overseas end in the failure of the commercial organisation, with the public picking up greatly increased costs to clear up the mess.

PPPs typically involve long-term agreements (25-50 years). They are secret – neither the public nor elected members know the terms. They are weak on accountability with virtually no transparency. They don’t appear on the public body’s “balance sheet” so its financial position looks rosier than it is.

Fixed returns to the commercial business are based on “notional” values and estimates. Real costs are almost always greatly underestimated. PPPs are much more costly than normal public sector construction. Private companies build in higher costs, making the project more expensive and bringing high risk to the venture. But considerable risk is also assigned to the government or local body. Companies can default or go into receivership, creating a debt that has to be paid for by the public and future generations, exactly as if the local body had undertaken the debt directly.
Read more

Syd Brown Mosgiel sign 1

So. There is former chair of DCC Finance, Strategy and Development, Mr Sydney Brown of the Taieri subdivisions and deals to cousins, and his property speculator/investor friends, thinking to drive the new pool project for Mosgiel. Maybe not quite a PPP but damned near it if DCC gives the nod on squishy terms. Your pockets should feel lighter already.

How much can you trust The Slid —as much as the cost of Fubar Stadium.

Two comments from Jacob at the draft annual plan thread:

Submitted on 2014/01/27 at 9:00 pm
Mosgiel Pool. The suggestion from council is for the community board to set up a trust with $30k of ratepayers’ money, to do the consultation and get the public to buy in and dig deep and pay for this $12-$18 million project. It doesn’t take long to work out. This is the same setup that led us up the garden path with the stadium. At last count there were four pools in the area to serve the local population. What happens to them. Will they become another liability like Carisbrook? What and who actually is driving the need for a new pool? I recently asked someone who is close to this out in Mosgiel if there has been an analysis done on the need for a new pool, and was told no. But a certain developer in Mosgiel’s main street has plans for himself and his mates to get the public to front up with the money for the building, then they will be able to base some of their business on site at no cost to themselves. Mosgiel is becoming the dog of the city. Big new industrial area was trumpeted a few years ago, to be the answer to the lack of industrial land needed to attract industry to come to Dunedin, sits empty and of no use to anyone. Then we had all the new residential areas opened up in Mosgiel. Most are half empty with spec houses; good rural productive land doing nothing and going nowhere, while the stormwater drains in Mosgiel only work during a drought, and the roads are a mess, no more seal extension. Mosgiel is becoming known as the land of the retirement village and the mobile scooter. Why spend so much on a pool when so many other basic requirements are not being met. Leave it to the community board? Yeah Right.

Submitted on 2014/01/27 at 11:34 pm
Hype. Not being a res of Mosgiel I am not able to answer your question, but I have good contacts out that way who tell me that most of the pools are available, and maybe there are more than the 4 that I mentioned. By the way what is so special about Mosgiel having a new pool, areas like Green Island, Normanby and out on the Peninsula appear not to have one and are just as far from Moana pool as Mosgiel. It appears that the homework for a new pool hasn’t been done out at Mosgiel, but it appears that it was just being used as an attention grabber for the election and that didn’t appear to work either. Like I mentioned before, this has all the hallmarks of another stadium, all bullshit and no substance, just wait to see who gets appointed by the board to do the consultation. The whisper is that it is all cut and dried.

Related Post and Comments:
16.11.13 Community board (Mosgiel-Taieri) clandestine meetings

Posted by Elizabeth Kerr

*Image: Syd Brown with Mosgiel sign corpsed and tweaked by Whatifdunedin

1 Comment

Filed under Business, Construction, DCC, Economics, Media, Name, People, Politics, Project management, Property, Site, Sport, Town planning, Urban design, What stadium

LGNZ: OAG report on Kaipara

Updated Post 7.12.13

Link received.
Saturday, December 07, 2013 4:29 PM

Anonymous says:
[An acquaintance] has been very involved with uncovering the Kaipara scandal. We’ve decided it is a genetic fiesty gene. You may be interested in putting up the following Youtube link… There are very similar parallels with the DCC!
See what you think.

Published on 22 Nov 2013. Ecocare Bear.

Mangawhai, Kaipara: When Government Goes Bad!!
Mangawhai Ratepayers and Residents Association (MRRA) goes to court in 2014. Please make donations now at http://www.MRRA.org.nz. We need your support to challenge Kaipara Council’s illegal contracts, illegal loans, 100% rates increases and abuse of law. If successful, our court ruling will help all Kiwis stop out-of-control spending by Councils around New Zealand

****

[via Far North email copy to Whatif? Dunedin]

OAG report on Kaipara
3 December 2013

Dear Mayors, Chairs and Chief Executives

This afternoon, The Office of the Auditor General released its report on the Kaipara District Council’s delivery of its wastewater project at Mangawhai and very shortly will be briefing media. The 400 plus page report (and summary report) is a sobering read. Media coverage is likely to be severe and we need to be ready for that. We would ask that you pass this communication on to all members of your council.

In summary, the Council’s management exhibited a lack of basic financial and project management expertise and little acknowledgement of relevant risks. Kaipara’s councillors also failed to assume governance responsibility for the project, assess its risks and ask the appropriate questions.

It would appear that the only positives [sic] outcomes are that Mangawhai now has a wastewater system that works and has capacity to cater for future growth. Although governance failures are not new in private, public or local government sectors, the report has highlighted significant management and governance failures and successive poor performance with Kaipara District Council’s delivery of its wastewater project.

This performance is not acceptable for local government, whether in the past, present or in the future. As all of us are acutely aware, it reflects very poorly on the sector. However, the issues have occurred – we now need to learn the lessons and take ownership of the broader governance concerns that the OAG has raised.

OAG’s report outlined areas for public sector entities to be aware of based on lessons learnt – these are outlined below. Without doubt there are many strongly governed councils in New Zealand but, as with any organisation, we can always improve. If a focus on governance ensures that a Kaipara is not repeated then the entire sector will gain from that, just as the reputation of the sector is tarnished when things go wrong on such a scale.

As we’ve discussed previously, LGNZ is introducing initiatives to lift the bar. The success of these initiatives will depend on member buy-in. In this regard, the Kaipara episode provides a powerful incentive for the membership to come together to support one another in ensuring that collectively we will strive to ensure that poor performance on this scale is never repeated.

Post-elections training for elected members is now complete. In early 2014, we will launch governance training in conjunction with the Institute of Directors to assess and improve current governance practices in councils. Councils will need to fund this training. In the light of Kaipara, I encourage you to think of such training as an investment in good outcomes and not as an unjustifiable cost.

LGNZ is also soon to introduce its centre for advice and best practice, and has articulated a strong future focus for the sector on financial effectiveness and value. Indeed, a soft launch is already underway with some councils already accessing LGNZ for advice on matters that will form a key focus of the Centre of Excellence.

Governance will be a core focus in the coming triennium. I recommend that you and your council review the report – the 40-page summary may assist here – and consider the relevance of the messages for your council. LGNZ will shortly issue a media release and I will front media as required – we need to acknowledge where there have been failings and show what we are doing to lift performance.

I will continue to write on this subject – including an article which may feature in national media in coming days and in IoD’s [Institute of Directors] Boardroom magazine later this month. It is important that our stakeholders and the public know we are strongly committed to good governance. The video clip on our recent major issues seminar held in Wellington on 21 November – “Why good governance matters in local government” – is available here on our website – this is useful viewing.

I have also provided my speech here. Michael Stiassny, Vice-President of IoD, has made several pertinent points for the sector to consider. We will continue the dialogue, and if you have any feedback for Malcolm [malcolm.alexander @ lgnz.co.nz] or myself [lawrence.yule @ hdc.govt.nz] on this subject, or any other, then please email us.

Kind regards

Lawrence Yule
President

Local Government New Zealand

OAG’s advice to public entities on lesson learnt:

Accountability
● Public entities should be meticulous about legality
● Good record-keeping is the foundation of effective accountability
● Workshops can supplement formal Council meetings, but not replace them
● Contractors need to be tied into public sector accountability mechanisms

Governance
● Understand the role and stick to it
● Common sense is a legitimate governance tool
● Understand what you need assurance on and where you will get it from
● Audit committees can provide useful support

Management
● There are limits to contracting out
● It is important to maintain appropriate financial management capacity and capability and to stick to your sphere of competence
● Project governance and management is important

PPP arrangements
● Do not underestimate what is involved in a PPP arrangement
● Accounting should not drive the decision to enter into a PPP
● Transfer of risk is not an end in itself
● PPPs are unlikely to succeed fully if the contract is not for “the complete package”

Feedback [info @ lgnz.co.nz]

——————————————————————-

[via scoop.co.nz]

Kaipara review shows a need to lift governance performance
Tuesday, 3 December 2013, 2:33 pm
Press Release: Local Government NZ
http://www.scoop.co.nz/stories/PO1312/S00024/kaipara-review-shows-a-need-to-lift-governance-performance.htm

Related Posts and Comments:
12.11.13 Northland council amalgamation
29.6.13 Audit NZ and OAG clean bill of health —Suspicious!
21.4.13 Councils “in stchook” —finance & policy analyst Larry.N.Mitchell
19.3.12 Local government reform
21.2.12 Kaipara this time

Posted by Elizabeth Kerr

25 Comments

Filed under Business, DCC, Democracy, Economics, Media, Name, New Zealand, People, Politics, Project management, What stadium

Christchurch: HOTELS with Chinese investment pending

A major Chinese construction company is eyeing joint-venture prospects in Christchurch.

PrimeTV News China 2 12-4-13PrimeTV News China 1 12-4-13

### stuff.co.nz Last updated 11:33 12/04/2013
Chinese ‘very interested’ in key Christchurch project
By Lois Cairns – The Press
Christchurch Mayor Bob Parker, who is in China visiting Christchurch’s sister cities, met representatives from Beijing-based company Huadu Construction this week and says they are interested in being part of a major development planned for Christchurch.

Parker said he could not reveal details of the development at this stage as negotiations were still under way, but it would be a significant project for the city.

Earthquake-recovery officials have been overseas previously seeking expressions of interest in key projects for Christchurch’s rebuild, including the new convention centre.

Asked about the possible scale of investment, Key said “the sky’s the limit” for some of the groups they were in talks with, some of which were experienced in PPP investment.

Prime Minister John Key said the business delegation he was leading in China this week had met groups interested in investing in construction, such as building hotels, where New Zealand had long accepted foreign investment. Christchurch could form part of these discussions.
Read more

****

Anonymous provided this link…

Starplus Homes staff ‘in the dark’
Some Hamilton tradespeople and contractors are understood to be owed hundreds of thousands of dollars by Chinese building company Starplus Homes. Read more

Posted by Elizabeth Kerr

Images: PrimeTV News 12.4.13 [screenshots]

23 Comments

Filed under Architecture, Business, Construction, Design, Economics, Geography, Media, Name, People, Politics, Project management, Property, Site, Tourism, Town planning, Urban design, What stadium