Saturday, October 30, 2010

al's dunedin Blog Moving To Wordpress

This blog is moving from Google Blogger to Wordpress.
Google Blogger is a great system and I recommend it to anyone wanting to start a blog.
But Wordpress is more advanced and allows a lot more customisation, which will enable me to do what I want with this blog, and develop some new skills in the process.

The new address will be:
Users will have to update their RSS feeds.

The old address:
will still work.

Tuesday, October 26, 2010

Council Staff responsible if recycling target not met

The ODT reports that Dunedin residents may have rates increases if they do not increase recycling when the new recycling scheme comes in.
If there are rates increases because the budgeted target for the new recycling plan are not met, then it is the responsibility of the Council staff who planned this project. They were told that large wheelie bins were not suitable for many Dunedin properties because of space and access issues. Many people will chose the medium-size wheelie-bin. And many more will stop recycling all-together because the option of a small bin was removed from the new recycling scheme.
See also this thread on Whatif?

Monday, October 25, 2010

Harland Still Keeping Carisbrook Valuation Secret

In a reply to a Letter to the ODT Editor by Dick Donaldson, Dunedin City Council chief executive said:
Unless the new council decides to do something different following the public consultation earlier this year, its annual plan indicates that in 2011-12 it intends selling Carisbrook. If the Council
confirms its decision to sell after the ORFU has vacated the site, it will want to obtain the best price it can get.
Disclosure of a current valuation (a three-year-old rating valuation may not be relevant) during the selling process would prejudice the council’s ability to secure the best price. Those who have bought and sold their own homes will understand the principle. Selling the property is a commercial transaction — disclosure of a valuation would undermine the council’s negotiating position, potentially imposing extra costs on ratepayers. In the end, of course, the value will be what the market says it is worth.
This is nonsense: if a homeowner has a good valuation, then he is will advertise it to try and obtain this price. I am sure the the DCC would be more than happy to get back the $7 million that we have paid for the Carisbrook properties.
But it seems the valuation is conditional. Ex-mayor Chin described it as a:
valuation of the current and future values across a range of land uses
I take this to mean:
it might be worth this much so time in the future if the zoning was changed.

Sunday, October 10, 2010

Pro-Stadium Group Remains On Council

After the election, a 7-strong pro-stadium group remains on the Dunedin City Council. These are:
  • Acklin
  • Hudson
  • Noone
  • Weatherall
  • Bezett
  • Collins
  • Brown

They form half of the 14 member Council, not counting Mayor Dave Cull.
Voted out were ex-Mayor Peter Chin, Michael Guest, and Richard Walls.
Newly elected Councillors are:
  • Richard Thomson: well-known for his service on the District Health Board, so he has experience of working with public-service bureaucracy. But he failed badly in allowing Michael Swann's massive fraud to go on for so long. I hope that he has learned from this experience.
  • Jinty MacTavish: well known for her "Green" credentials, but has almost no experience of the real world. A vocal proponent of the Global Warming scare. Unfortunately for her, this position is becoming increasing hard to defend as global temperatures have not increased as predicted.
  • Lee Vandervis: makes a welcome return to the Council as a forceful advocate of reduced Council spending. At least there is now someone on who will not be afraid to ask the hard questions.
Dave Cull's strategy, of trying to get a majority on the Council by running a slate of candidates under the Greater Dunedin banner, has not worked. The only new Greater Dunedin Councillors, Thomson and McTavish, were already well known. Rather than voting for the slate, people have voted for familiar names such as radio announcer, Neil Collins, and entertainer, Bill Acklin.
It is going to be interesting to see how hard Dave Cull is going "Slash Operating Costs", whether the newly-elected Council will vote for this.

Thursday, September 23, 2010

Waitati Trains Are Not Sustainable

Day-trippers had a pleasant train excursion today, but it is ludicrous to suggest that a regular train service to Waitati is sustainable. Trains are only sustainable when large numbers of people want to travel on the same route at the same time, which certainly is not the case here. Commuters want to travel at different times and few work within walking distance of the Railway Station.
And why is the Council funding an event for the Get The Train political group, which was being used to promote "green" candidates in the current election campaign?

Forsyth Barr and South Canterbury Finance

Well-respected independent stockbroker, Chris Lee, has written a newsletter with interesting comment about the role of Forsyth Barr (of Forsyth Barr Stadium fame) in the demise of South Canterbury Finance. Note that it is the New Zealand taxpayer who will suffer the losses in SCF's collapse, just as it is the Dunedin rate-payer who will bear the cost of the Stadium.

Monday, September 20, 2010

Vote For Lee Vandervis

My recommendation to those Dunedin voters concerned about the high spending, high debt and high rates of the City Council:

Vote For Lee Vandervis

Lee has consistently spoken out about these issues, and would be a valuable voice for frugality on the Council. He is unlikely to be voted in as Mayor, but under STV there is no risk in marking him as No 1 on the voting paper.

Dave Cull and the Greater Dunedin team would be an improvement on the old guard of Councillors, but seem equivocal in their commitments to making the savings required.

Monday, September 6, 2010

ODT Says DCC Should "Learn To Say No"

A great editorial in the ODT : to get Dunedin's high rates and debt under control, the Dunedin City Council must "learn to say no" to new projects and requests.
We will see if the new Council after the October elections makes any difference.

Thursday, August 19, 2010

Dave Cull Has A Blog

It is great to see that Dunedin City Mayoral Candidate, Dave Cull, has a blog.
It would be even better if he allowed comments.
The Greater Dunedin team already has a web-site.
The other Dunedin City Councillor with a blog is Fliss Butcher.
But some other Councillors post on What if? Stadium of Dunedin...

Wednesday, August 18, 2010

IT Startups At The Distiller Showcase

Many of Dunedin's IT startups will be presenting at the The Distiller Showcase:
5 pm Thursday 19th August
University Oval

Friday, August 13, 2010

Michael Guests Digital Strategy?

On Facebook's DCC has lost the plot, Mike Stk has noted that this website:
http://www.separation-international.com/
is registered to Dunedin City Councillor Michael Guest's Auckland brother using Michael Guest's street address and email address, as can be seen here:
http://who.is/whois/SEPARATION-INTERNATIONAL.COM
The ODT has now caught up with the story.
Michael Guest denies benefiting financially from this venture, but it is just the kind of digital enterprise that Dunedin needs.

Wednesday, August 4, 2010

Calvin on High Rates

More great analysis from Calvin Oaten on the "What if?" site.

Sunday, August 1, 2010

Small Bins Removed From Recycling Plan



The Dunedin City Council has decided on it's new recycling service. (ODT report here). But there will be no choice of a small bin.
In the consultation, the preferred Option C had a choice including a 40 litre, lidded, stacker bin especially for smaller properties or those with steps.
The smaller bins were an essential part of Option C: they catered for residents without much space, or with steps. Without them many people, including myself, would not have supported this option.
And why was this change in the Option which was consulted on, not mentioned in the Council press release? With this kind of omission, it can be fairly described as propaganda. Especially when it was praised as a good deal, when a significant amount would have been saved by the unmentioned reduction in choice.
This may well turn into yet another Council bungle.

Response from Councillor Andrew Noone:
The Councils preferred option was as you describe during the Annual Plan process, however when tenders were sought we asked contractors to provide options for the enhanced service.

Of the four conforming tenders none were prepared to provide the lidded/stacker bin for a reasonable price for these reasons:

1) lidded stacker bins are not robust enough for mechanical pick up, there seemed to be a problem with the lids hinge and the handles. This was news to the Council. Several were broken when contractors tested them.

2) the industry have far higher standards re health and safety these days and are moving towards using only left hand drive vehicle/single operation, so the driver is the only person in the vehicle, hence mechanical pickup.

3) the wheelie bins have a 12 year guarantee, contract is for 7 years. The lidded stacker bins had a much shorter life, sorry cannot recall length of guarantee.

4) the media were told about the reasons for the change but did not include those reasons in the article.

If individuals are physically unable to wheel bins to the kerbside then arrangements can be made with the contractor by providing a medical certificate for a back door service.
Update:
The ODT now has this story.

Stadium Lift Three Months Behind Schedule

The ODT reports that the lift of the first of the Stadium's five roof trusses was expected to be done next week.
That would make the lift nearly three months behind schedule, when compared with a stadium construction programme presented to the Dunedin City Council by CST staff last October.
Mr Farry is still saying that the Stadium can be built on budget and in time for next year's World Cup. It will interesting to see to see what comes out of the woodwork once this year's Council elections are over.

Monday, July 26, 2010

Is The Digital Strategy Just Empire Building

This was my submission to the Digital Strategy Hearing:
Looking at the “Digital Strategy” documents, it seems to me that it is going to be yet another example of Dunedin City Council empire-building: the expansion of Council responsibility into a new area. It may start off slowly, but I have no doubt that the bill will soon be millions of dollars.
But Dunedin has developed over the years, and is continuing to develop, a good digital network without any involvement of the DCC. Businesses and households already have many options of Internet services to meet their requirements and their budgets.
As some-one who spends 100% of my work-time connected to computer systems in other parts of New Zealand, and sometimes the world, the existing network is not a limitation on digital business in Dunedin.
City Wifi: No
The City Wifi network should not be extended, and the existing Octagen service should be closed down unless it becomes privately funded. A City service competes with commercial services such as mobile broadband. Accommodation providers and cafes can attract custom by providing Wifi to visitors.
City Help desk: No
Users should purchase computers from local specialist retailers who will provide support in return for custom.
Schools
It is not the responsibility of the Council to provide IT services to schools
Rural broadband
Ratepayers should not subsidise broadband services for rural areas.
Fibre to the Home
There is no business case for Fibre to the Home. People will not pay extra for it.
A new DCC Digital Manager: No!
The last thing this City needs is another manager, there are already too many. It also will be a sign that significant Council money is intended to be spent in this area in coming years.
Encouraging IT Businesses:
The best way that the City Council can encourage IT businesses, and other types of businesses, is to reduce rates and other Council charges and fees.
The Hearing Panel seems to be saying that not much Council spending will be required. Time will tell.

Tuesday, July 20, 2010

Colin James On Dunedinites Get-Up-And-Go

Colin James has an interesting comment in his ODT column today
There is a wider electoral point for National: the very people who exit to Australia are probably mostly get-up-and-go sorts who would vote National if they stayed. The spectre is Dunedin, Labour-voting for decades as Dunedinites drifted north (and now west) for higher pay.
Perhaps this is an explanation for lack of entrepreneurs in Dunedin and the lack of appreciation of the benefits of the market.

Monday, July 19, 2010

Penguins

Yellow-eyed Penguins at an isolated Peninsula beach last weekend.

Calvin's Analysis of DCC Debt

Today's ODT has Calvin Oaten's latest analysis of Dunedin City Council debt.
Calvin has found that the DCC is planning to capitalise interest on it's debt i.e. borrow more to pay the interest on existing loans.
Ratepayers have reason to be very worried about the future of DCC finances: it is them who will have to pay in the end.

Sunday, July 18, 2010

Gallery Tiff Over Arts Map Exclusion

The Dunedin City Council has been embarrassed by a bungle in which public money funded an Arts Map from which some Galleries were excluded. (ODT report here).
The Map is going to have to be re-printed. I wonder who will bear the cost of this?
That this has been allowed to happen shows slack management. Dunedin City Council community arts adviser Cara Paterson appears to have responsibility in this area.

Trotters In The Trough

Congratulations to the Otago Daily Times for the expose of credit card spending by Dunedin City Council staff. The arrogance, greed, and sense of entitlement displayed is astounding. The ODT editorial puts it well:

Many, inevitably, think they operate like those in the business world and that providing hospitality and generous "rewards" is part of the way to grease the wheels of commerce. Usually, though, businesses provide products and services in a competitive market and profit and sales can be a salutary and meaningful constraint on business activity.

Council staff, in contrast, are public servants providing services for or on behalf of their fellow citizens.


The bloated bureaucracy in the Dunedin Town Hall is long over-due for a diet.

Monday, July 12, 2010

Extra Carisbrook Information

In response to a query to the Dunedin City Council regarding the future of Carisbrook, Tami Beckingsale replied with this information:
Loans
The amount of the loans outstanding is $5million. The rentals from the houses covers about $1m of the $5m. After the ORFU leaves there will be no revenue to cover $4m.

Demolition
Doug Hall advised two years ago that he believed that he could demolish all except the Terrace Hospitality complex for net zero. That is, the costs of demolition would be offset by the sale of demolition material. If markets and costs have changed that may no longer be the case. As one of the leading demolition experts, Mr Hall can be contacted for an up to date view.

Sunday, July 11, 2010

Just Buy Your Veges At The Market

The Green Party is getting headlines by complaining about the markup that supermarkets make on fresh produce. They suggest that the Government should impose a code of conduct to control prices.
Haven't they heard of competition?
People have a chose where they buy their produce. Instead of a supermarket, they can go to a green-grocer or shop at the Farmer's Market. Or best of all, grow their own.

Saturday, July 10, 2010

Kiwiblog in Dunedin

David Farrar of New Zealand's leading blog, Kiwiblog, has been in Dunedin this week attending the Science Festival and other activities. See his blogs about Dunedin here.
This is great publicity for our city.

Sunday, June 27, 2010

Sell Carisbrook To The Highest Bidder

Carisbrook should be sold to the highest bidder. The council would then be able to pay back the loans that were raised to buy it. The council would then be no longer responsible for interest payments, maintenance and demolition costs.
And the new owner could put Carisbrook to productive use, perhaps as industrial land, providing jobs and contributing to the city's economy.
But I think that the Council will be reluctant to take this course of action because the sale price of Carisbrook is likely to be much less than the $7 million which was paid for it.

Tuesday, June 8, 2010

DCC Rates Guest House Out Of Business

The ODT reports that luxury guest house, Norfolk House, has decided to close down rather than pay the the Dunedin City Council's massive rates bill. The Council's decision to change the rating from residential to commercial increased the rates bill from $2900 to $9800. This made the business no longer viable.
We are regularly told by the the Council of the economic benefits from Council activities, but we are never told about the harm that they cause:
  • Council spending must be paid for by rates which are a cost on business. Businesses pay a penal rate which is many times that of residential properties. If a business is marginal, then high rates may cause it to close.
  • High Council fees for resource consents, and other "services", have a similar effect.
  • Excessive rules and regulations prevent, or cause intolerable delays, in potential business activities.
The lesson of economic history is the money is more wisely spent by those who have earned it than by bureaucrats and politicians.

Monday, June 7, 2010

Pay Rise For Harland Not Justified

The ODT reports that Dunedin City Council Chief Executive, Jim Harland, has been awarded a pay rise after his annual appraisal after Councillors and senior staff rated his performance. If ratepayers were asked to rate Harland's performance then I am sure that they would find many reasons why this pay rise is not justified:
  • He has already has had a big pay increase from $208,000 in 2004 to the current $355,000. The is more than a fair salary for his role.
  • Most other Council, Government, and private-sector staff are having nil, or very-low, pay increases.
  • Harland's time at the DCC has been marked by Empire-building and a massive increase in spending . This has resulted in many years of large rates increases and there are many more years of large rates increases to come.
  • The last year has been marked by major bungles such as the Harbourside debacle, and multiple bungles in Parking.

Tuesday, June 1, 2010

$3.3 Million Blowout In Old Gasworks Costs

A Dunedin City Council report shows a $3.3 million blowout in the cost of restoring the old Gasworks. An extra $345,000 is required this year and an extra $1 million in 2012/2013 and 2013/2014. This follows a regular pattern in DCC projects where approval is gained by claiming only a relatively small amount of money will be required, and then "unexpectedly" finding that costs are much greater.
Councilor Michael Guest is not impressed and said that:
someone's head should roll
This comment is ironic considering that Guest is a strong Stadium supporter, and the same thing could be said about that project.
In a private business, those responsible for bungles such as this, are not going to remain in their jobs for very long. But Council staff never seem to be held accountable. Perhaps from the Council's point-of-view, it is actually successful empire-building.

Thursday, May 27, 2010

A New South Dunedin Library Is Unnecessary

I support a spruce-up for South Dunedin, but I oppose building a South Dunedin Library because it is not justified when the Main Library is only short distance away and good public transport is available.
This is especially so considering the large rates increases facing city residents in coming years. The expense of a new library is not just the cost of land and building, but also the ongoing operating costs which will add to the already-bloated Council budget.
I am skeptical about the claim that a library will have a significant benefit South Dunedin businesses.
The Dunedin City Council already spends more than enough on Library services considering the declining importance of libraries, as the Internet takes over as the primary source of information in the community.

Wednesday, May 12, 2010

Post Office Hotel Is Good News For City

The report that the Old Post Office in the Exchange will be developed as a hotel, is the best news that Dunedin has had for a long time. A City is made prosperous by private investment such as this, not by Council projects such as the Stadium and Town Hall upgrades which must be subsidised by tens of millions of ratepayers dollars.
And now the plans for moving the Library have been scuttled. This gives the opportunity to put the plans for a new Library on long-term hold, and remove $20 million from the DCC Long Term Plan. Rates are currently projected to rise by 65% over the next 8 years, which is totally unacceptable. We already have a perfectly good library. A new library is a luxury that the City cannot afford.

Thursday, May 6, 2010

Big Payout To Councillor's Daughter

The owners of the Hungry Frenchman restaurant Grant Walker and Anna Hudson, have been paid $360,000 by the Dunedin City Council to end the lease of their Civic Centre premises. Anna Hudson is the daughter of Dunedin City Councillor, Paul Hudson. The Council wanted them out of the way so the Town Hall upgrade could proceed.
The Council does appear to have followed correct procedure, obtaining independent advice and Councillor Hudson withdrew from the decision-making process. But the amount seems very large considering the restaurant may not have been doing well, and may not have exercised it's right to extend the lease.
It seems to me that having Councillors withdraw from meetings when items in which they have an interest are being discussed, does not fully allay public concerns. There may be a feeling that there is an understanding of "You look after me this time, and I'll look after you next time".

Tuesday, May 4, 2010

Highlanders Will Leave Without Support

The New Zealand Rugby Union has underwritten the Highlanders finances for the next two years
But NZRU chief executive Steve Tew says that they cannot continue covering the Highlanders losses, and that regional support is required. Without much bigger crowds, it is the Dunedin City Council which will have to come up with the money to keep the franchise going.
The City is relying on Rugby to cover a large part of the Stadium's operating costs. Unfortunately, Dunedin now desperately needs the Highlanders. This situation was predictable and was predicted by Stadium opponents, but is exactly what was wanted by Otago Rugby to ensure ratepayer support. Remember that the City Council is already guaranteeing Otago Rugby's bank overdraft.
The situation will become even more gloomy if Otago fail to make the top seven in the National Championship this year, and are relegated to the Second Division for next Year.

Sunday, May 2, 2010

$9 Million Blowout In Cost Of Stadium Bypass

The cost to move the highway around the new Stadium has increased by over $9 million, to almost $25 million. This includes increases in the cost of both construction and land. Taking into account a previous increase, the cost of land for the Stadium is $10 million over budget. It is some consolation to the City, that 2/3 of the cost will be paid by the New Zealand Transport Agency.
Dunedin city councillor Andrew Noone yesterday said the change to the district plan that turned land at the area from an industrial to a stadium/campus zone had an effect on negotiations, and an impact on the value of land.
Duh! The Council rezoned the area to benefit property speculators, and it ends up costing ratepayers millions more dollars?
Using the Public Works Act to require land owners to sell would have been the ideal situation, he said, but the timing of the stadium and realignment meant that had not been possible.
This is just bad planning, due to the rush to build the Stadium.

Wednesday, April 28, 2010

Independent Report On Parking Debacle.

The Dunedin City has called for an independent report on the bungled Parking changes. Deputy Mayor Syd Brown said "common sense" should have been applied to the changes before their release.
It does not need an independent report to tell us that the Parking shambles was due to the poor performance of Council staff for which DCC chief executive, Jim Harland, is ultimately responsible.
It is probably too much to expect the report to provide any accountability, which is sadly lacking in government organisations, both local and national, in New Zealand. As an example, no staff were held to account for the slack management in the Otago District Health Board which allowed the multi-million dollar Swann fraud.
As a further insult to ratepayers, they will presumably have to pay for this extra report.

The ODT has now written an editorial on this issue, "DCC Common Sense".

Sunday, April 18, 2010

Backdown on Harbourside Bungle

The Dunedin City Council has decided to withdraw Stage 2 of its planned Harbourside development because of the concerns raised by local businesses. This uncharacteristic change of direction may be because an election is not far away.
This is a blow to DCC chief executive Jim Harland's vision for a Harbourside "Venice of the South".
But it didn't seem to be happening anyway: private enterprise wasn't rushing to follow the DCC investment. Handicaps of the area include the separation from the city caused by the railway corridor, and the windy and cool weather that the area is notorious for (I know because I have worked there for the last ten years).
Contrast this with the development at the St Clair Esplanade which has a much better climate, where cafes and restaurants are thriving.
The other loser is the Otago Regional Council which hoped to profit from it's property speculation in the Harbourside. It has vented it's frustration by cancelling it's membership of the Otago Chamber of Commerce which acted for local business in this matter.
The ODT story is here.

Monday, March 29, 2010

Big Bill For Bloated Bureaucracy

Times have been hard for many families and businesses in Dunedin over the last few years. Businesses have closed down, people have been made redundant, others have had reduced profits or wage-cuts or wage-freezes.
But, as the ODT reports, there has been no restraint on the Dunedin City Council bureaucracy: staff costs have increased by 34% in five years to $40 million per year. The generous pay raises have been accompanied by bungles such as the Parking debacle and the Harbourside zoning mistake. If big crowds don't flock to the Stadium as optimistically projected, and conferences to the upgraded Dunedin Centre, then these projects can be added to this list.
It is time for the Council tighten it's belt an share the economic pain that the City is experiencing.
[Councillor Kate Wilson] planned to ask "serious questions" about whether the amount being spent on an expanding bureaucracy was warranted.
A suggestion for a place to start:
Does the Council really need a "Safe and Sustainable Travel Co-ordinator"?

Thursday, March 11, 2010

Harbourside Report Slams Council

The Otago Chamber of Commerce has released a Report(pdf) on the Harbourside Plan Change, which they commissioned from Paterson Pitts Resource Management Ltd. It documents the threats to businesses and jobs from the Dunedin City Council's planning activity.
It is well worth a read. This seems to be yet another example of Council bungling, and yet again it is property speculators who are benefiting.

Thursday, February 25, 2010

Otago Rugby Going Broke

The ODT reports that Otago Rugby lost $0.75 million last year. The Union's income has reduced by more than $1 million a year, as crowds have dwindled over the last few years. The disappointing attendance of 7,500 for the recent Highlanders game continues this trend. And the appointment of an Australian coach instead of local legend, David Latta, is not likely to inspire loyalty from fans.
Otago Rugby was lucky to be bailed out by the City Council's purchase of Carisbrook for a very generous price of $7 million. But a business cannot carry on making losses every year. The Dunedin City Council has guaranteed Otago Rugby's overdraft, and there is a real risk that this guarantee will be called upon.
And, of course, the Stadium is relying on Rugby for a major share of it's income. Only the top seven teams in this year's National Championship will be in the top division in 2011. Otago finished seventh last year. The Stadium may have to attract crowds with a second-division team team.

Monday, February 8, 2010

Big Rates Rises Postponed In Election Years

The ODT has an interesting editorial today, "A spendthrift tendency", showing that the Dunedin City Council has smaller rates rises in election years and large rates rises in in-between years:
  • 1997 4.9%
  • 1998 2.5% election
  • 1999 5.7%
  • 2000 5.1%
  • 2001 2.9% election
  • 2002 1.9%
  • 2003 2.9%
  • 2004 2.8% election
  • 2005 8.5%
  • 2006 5.5%
  • 2007 6.4% election
  • 2008 10.4%
  • 2009 7.0%
  • 2010 5.2% election this year
  • 2011 8.9% next year
The ODT calculates that:
Over these 15 years, the average rates increase after an election is 7.08%, in election year the average is 3.96%, and the figure for the middle year is 5.08%.
This trend is certainly confirmed this year when the "reduction" in the size of this year's proposed increase, is clawed back by increases in the size of rises in future years.
The Council is taking voters for mugs and hoping that they have short memories.
In the October election, we will see if they are right.

Sunday, February 7, 2010

Sevens Would Cause Riots In Dunedin

New Zealand's leading blogger, David Farrar of Kiwiblog, claims that the International Sevens Rugby tournament, which is currently held in Wellington, could not be held in Dunedin because it would cause rioting.
Students (and others) in Dunedin start burning couches and generally rioting after just a couple of hours of drinking. You’d have to be mad to want to host a game which is basically two days of non-stop drinking rugby.

I am not sure how serious the post is, but he may have a point. How will liquor sales at the Stadium fit with in with the University's current clampdown on alcohol use?

Thursday, February 4, 2010

ODT Blocks Access To CST Criticism

Yesterday's front-page lead story in the Otago Daily Times, "Further $1.8m for stadium", is no longer available on the ODT web-site, with "Access Denied" displayed instead:
http://www.odt.co.nz/news/dunedin/91669/further-18-million-stadium
If this block is due to lawyers trying to stop criticism of the Carisbrook Stadium Trust, then that will become a story in itself.
UPDATED
I emailed the ODT and asked for an explanation for the "Access Denied", but I have not had a reply.
The story is back on-line with "a clarification" that the actual extra amount is $1.639. This small error does seem to be enough to explain the "Access Denied".
In a related story, it is claimed that the oversight was not the responsibility of the Carisbrook Stadium Trust, but of the Dunedin City Council.
"It was never the responsibility of the trust," [CST chairman, Malcom Farry] said. The trust had been asked to plan and build the stadium, but not to run it once that was done.
This is nonsense: the CST was responsible for projections of income and expenditure for the Stadium, which were produced at considerable expense to Dunedin rate-payers. Opponents of the Stadium claimed that costing were being kept unrealistically low to boost the case to go ahead. It is now clear that they were correct.

Sunday, January 31, 2010

Another Million Added To The Stadium Bill

The new chief executive of the Stadium (DVML) company, David Davies, has wasted no time in putting his hand out for more money from the Dunedin City Council.
In a report (pdf) to the Council, it is revealed that Dunedin Venues Management Limited is expecting $2.4 million to cover spending before the Stadium receives income. $1.5 million of this is for staff expenses. About $1.4 million of this is already budgeted for, from rates and Carisbrook Stadium Trust appropriations. About $1 million is not currently budgeted for.
DCC Finance Manager, Athol Stephens claims that not extra contribution is required from rates because the money can be found from:
  • a "subvention receipt" from Aurora Energy Limited of $0.672 million
  • a one-off dividend of $0.264 million to be transferred through DCHL
Taking this extra money from Dunedin City Holdings just means that DCHL debt will be $1 million higher than it otherwise would have been. Athol Stephens can play a shell game, and move money around between different places all he likes. But in the end, it is all ratepayers funds and affects rates.
And this extra payment raises the question:
If this extra $1 million is required for the Stadium, then why was it not included in the Carisbrook Stadium Trust projections?

Peninsula Challenge on TV3

The Otago Peninsula Challenge was the subject of an feature on TV3 News last night. This was excellent promotion for our scenic Peninsula and Dunedin's active lifestyle.
As an active mountain-biker (I regularly ride with the AOK Social Rides), I have always participated in this event. But I think that it may be too hard for the average rider. The drop in mountain-bike entries this year, from 350 to 250, seems to confirm this. Significant sections of the course are just not ride-able, except by the elite e.g. the steep climb between Allen's beach and Cape Saunders, and the climb up from Victory Beach. There is just too-much "push-a-bike" to make participants eager to come back.

Wednesday, January 20, 2010

ODT Slams Annual Plan Sham

See the editorial in today's Otago Daily Times.

Tuesday, January 19, 2010

Well Done to Bookit

A good news story in the ODT:
Dunedin IT company, Bookit, has been sold to TradeMe. The company provides on-line payment services to the tourism industry. Founder, Andrew Schofield, will get a payout for his initiative and nine years of work, as will investor, Ian Taylor.
It is dreams of buyout which drives the startup culture of places such as Silicon Valley. Bookit's success will be encouragement to existing and potential entrepreneurs in Dunedin.
It is not the bureaucrats and politicians in the Town Hall that create the wealth of the City, it is the hard work and enterprise of private individuals and businesses that will bring make us richer.

Sunday, January 17, 2010

Wall Street Losing Money?

The Dunedin City Council's much-hyped shopping mall development may be losing money.
This item was in the ODT story on the DCC budget:

Other increases contributing to the council's rising operating costs included a further $1.05 million for the city property department, in part covering operating costs for the council's Wall Street mall.

Mr Stephens said those costs included rates, the building's warrant of fitness, cleaning and other costs not covered by rent from tenants.

Overall revenue from the complex was "more than adequately" covering costs, he said.

If rent from tenants is not covering expenses such as rates and cleaning, then Wall Street is losing money, not contributing to the City's finances as was the expectation.

Later update:
I may have misunderstood this, "not covered by rent from tenants" may mean not paid directly by tenants. Perhaps there is income elsewhere in the budget for rent.
It would be good to see the actual figures to see what effect Wall Street is having on the DCC budget. Does the income cover all expenses including depreciation?

Monday, January 11, 2010

Sign For This Summer..

This rain-streaked sign outside "Salt" restaurant on St Clair Esplanade in the middle of Summer ....

The bad weather just goes on and on. And with the Big Freeze in the Northern Hemisphere, the global warming theory is looking more and more unlikely.
I recommend "Salt" for some of the best dining on the block: fine food and good value.

Sunday, January 10, 2010

Dunedin Drowns in Debt

The Otago Daily has had two features this week raising concerns about Dunedin City Council debt:
a front-page story, "City debt spiralling to $360 million", and an editorial, "The debt millstone".
But, as Calvin Oaten has pointed out, if Council-owned companies are included then the debt will actually total $730 million.
It is hard to disagree with the ODT here:
The council has long disappointed ratepayers with its history of failing to curb rates increases and rising charges, of heavier drawing down from debt-laden council-owned companies, and of encouraging ballooning liabilities.