Wasted Time on Jury Duty

I was on Jury Duty last week. On Monday morning, I waited for two hours before being told the trial was delayed until tomorrow. On Tuesday, the trial started and I was not chosen to be on the jury. On Thursday, I waited for two hours before being told the trial was delayed until the afternoon. In the afternoon I waited for an hour before being told that the trial was canceled for the week. I spent most of my time on Jury Duty waiting for delayed or aborted cases. Surely it is not too much to expect that pre-trial issues are sorted out before the appointed trial start time, and to hold lawyers to account when they are not.
There are clearly problems with the organization of Jury trials and the Government wants to do something about it. But limiting the right to a Jury trial would be a backward step. There have been many events which raise doubts about Judges and Police. They should not be allowed to impose significant prison sentences on people without the opportunity to be judged by a jury of their peers.
It is better management of the Court system which is required, not the watering down of long-held rights from our English legal heritage.

Calvin's Analysis of Stadium Finances

Calvin Oaten has written a letter to the ODT, analysing Stadium finances. It will be very interesting to see the Council's response to Stadium submissions, when it comes out.
There is a thread on this topic on the ODT site.

Dunedin City Council CEO Jim Harland is working very hard on a standard but "very detailed response" to stadium submissions, including the history of the project, that councillors would be able to debate before sending it to all submitters in an attempt to "de-confuse them". That should be an interesting exercise, which I hope the recipients appreciate. After all, we have spent over $20 million endeavouring to get the council to
understand it and, by all accounts, it is not even certain that they do yet.
It really is quite simple. The plan is to build a stadium at a cost of some $200 million. The DCC is to contribute $85 million, the Otago Regional Council $37.5 million, the Otago Community Trust $7 million, the University of Otago $10 million and the private sector $45.5 million. The Government contributes $15 million, making a total of $200 million. The DCC is to put up an additional $6.4 million, set aside as a capital maintenance fund. The $91.4 million DCC portion is to be paid off by the council-owned company DCHL at the rate of $5 million per annum over 20 years. This means that DCHL’s dividend to the DCC over that period will be reduced by $5 million per annum. This will be made up by the ratepayers at an average cost of $66 per annum on their rates. This leaves a conundrum or two to be considered.
The $100 million of DCHL’s debt at 7% interest over 20 years will cost $70 million, or $3.5 million per annum. Then there is the fact that the private funding has not eventuated in time for the construction period. In fact, there will only be $2.9 million available with the balance of $42.6 million required to be bridged by the DCC. The balance is is now projected to come in progressively through to 2021. Assuming it is equally spread through to 2021, this could mean an interest charge of $1.5 million per annum for 10 years. So, we have an additional $5 million per annum to be found.
Mr Harland will tell us that this will be paid by the venues management company (DCVL) out of its operational revenue. That’s right — a profit of not less than $5 million a year, over and above all expenditure, maintenance and depreciation etc. Of course, with 10-12 rugby matches a year that should be a breeze. But if this does not eventuate then guess who pays?
If the $5 million dividend loss is to cost us $66, then it is reasonable to assume that the $5 million interest costs would also cost us $66 if DCVL does not achieve its projected returns. This means an average total of $132 per ratepayer. Oh yes, I almost forgot - we will all also be paying the ORC for its
contribution, which could easily be an average of $45 per ratepayer. Total now $177.
Then, of course, we should take into account the lost opportunity of the dividend. By this I mean if the stadium was not happening, we would save $66
and get the dividend. This means we in effect pay twice. So, in real terms, the deal could cost the average ratepayer $243 per annum. I will bet dollars to
doughnuts that Mr Harland’s explanation will not tell us that. After all, when he and his counsel were asked by Justice Chisholm to explain how the $66 per ratepayer was arrived at, they admitted that they could not.
Whom to believe? It is your choice.

Calvin Oaten
Pine Hill

Regent Upgrade Will Add $4.7 Million To DCC Debt

$4.7 million towards an upgrade of the Regent Theatre has been sneaked into Dunedin City Council Annual Plan at the last minute. Chief Executive, Jim Harland, said that, because this was "Health and Safety" work, it could be carried out without consultation. But there appears no reason why this item could not have been made public earlier so that the public would have had the opportunity to comment. "Health and Safety" was also used as to justify the Town Hall upgrade.
There was a suggestion that this work be funded by endowment funds. And the doubtful claim was made, that the Regent could fulfill the need for a 800 seat theatre by the putting up of partitions.
The $4.7 million will be funded by loans. This will add to the Dunedin City debt which Calvin Oaten calculated would reach $666 million next year.
The ODT has the story here.

Calvin's Analysis of DCC Finances

Calvin Oaten does some of the best insights into the finances of the Dunedin City Council. His latest analysis is on-line on the ODT site.

Letter From Cull, Wilson and Staynes

An excellent letter has been sent by Dunedin City Councillors to the ODT:

NOW the final decision to build the stadium has been made, a chorus of unqualified support has been attributed to some of us who have opposed the project. Let us be clear. The cost of this project being imposed on the majority in our community against their wishes carries enormous risks and we remain very concerned about these. However, the die is cast and like every other council facility, the stadium should be supported and promoted to the full. In order to reduce the liability of this new facility on our ratepayers, we have to strive to make it work and maximise any possible potential for viability.
We need to proactively seek solutions to the risks this project poses such:

• The very real chance that the cost will rise further.
• The potential for future opportunities having to be passed up in order to contain rates increases within an affordable range.
• The Dunedin City Council-owned companies becoming unprofitable due to the extra debt burden imposed by the stadium.
  

To counteract these, we will need to identify ways in which to minimise the rating burden through:

• Delaying or deleting other capital projects to limit overall borrowing costs.
• Reducing council operational costs.
• Not allowing the private sector funding effort to flag. It is more important now than ever.
  
• Ensuring the ongoing management and promotion ofthe stadium is efficient and of the highest quality to minimise operational deficits. .
  

In addition, it will be imperative that:

• The community supports and uses the stadium facility where possible.
• The tertiary sector openly commits to using the facility and the opportunity it presents for growing the education sector in the city.
  
• The city’s reputation as a centre of excellence for high-performance sport is significantly enhanced.
  

Even if these are realised, the next council will still face the daunting tasks of curtailing community expectations in other areas for lack of funding and of rebuilding the trust in the council eroded by the stadium process.

Crs Dave Cull, Kate Wilson and Chris Staynes
Dunedin

Biking Around Like Hawea

I joined the hundreds who mountain-biked around Lake Hawea in the Contact Epic and Classic. The weather was fine and clear, ideal to enjoy the superb scenery, which is not usually accessible to the public. It is a tough ride due to the rocky nature of much of the route.
I often take part in the regular Saturday AOK Social Rides, traversing the many hills and trails around Dunedin. Mountain-biking is a great way to keep fit and enjoy the outdoors in good company.