Possum TB Vaccine Is Stupid

Landcare Research are trialling a tuberculosis vaccine for possums. It hard to think of a more ridiculous waste of money. If possums can be given a vaccine, then they can be killed or poisoned.

DCC Answers Your Prayers

The Dunedin City Council Propaganda Department has outdone itself this time.
Your prayers have been answered if you have prayed for:

• An increase in parking fees
• Paid parking in areas which previously were free
• Paid parking at times which were previously free
  

Bus Route with Empty Buses Canned

The "City Loop" bus route, which has averaged one passengers per trip, has finally been abandoned by the Regional Council. I have advocated for this service to be stopped, at the last two years Regional Council Annual Plan hearings. $400,000 has been wasted on this route: it should have been terminated long ago. Attention should also be paid to other poor-performing routes. If few people are using a bus, then the Regional Council should not be subsidising it.

DCC Wise To Fix Stadium Loan

The DCC has locked in $90 million, of the $109 million Stadium loan, at 6.4 % from 2011 to 2016.
This is a wise move as interest rates are rising steadily, and seem certain to continue rising, due to massive borrowing from Governments world-wide to pay for their "stimulus" spending.
The Stadium loan is for 20 years so there is still an interest rate risk after 2016, but the Council move is the best that could be done.

Mid-Winter Lantern Parade Photos

Eckhoff Opposes Waterfront HQ

Otago Regional Councillor, Gerrard Eckhoff, has an excellent article in the ODT, opposing the building of of the new Regional Council HQ on the waterfront.
He challenges the claim the money will not increase rates:

The proposed office block on the harbour basin is to be funded from reserves.
While the proponents of the new harbour site building argue it will not affect rates, there is an opportunity cost to the use of ratepayer reserves, which can be spent, saved or used in many ways.
The ORC effectively had a choice to fund the stadium ($37.5 million) or the proposed new building ($34 million) out of reserves.
Either way, the run-down in reserves will no doubt be rebuilt over time, so the rate take will need to continue at the current levels.

And comments on the Waterfront weather:

Some believe the enhanced amenity value to Dunedin's public will offset the significant cost in building on such a site.
Comparisons have also been made with the Auckland Viaduct Basin, which super-yachts and the America's Cup (briefly) call home; and where a thriving café culture exists in the almost subtropical climate.
Dunedin has no such opportunity, given the east wind off the harbour makes itself felt most days.

I am can comment on the Waterfront climate as much as anybody as I have worked in the Port Otago Building for the last ten years, cycling to and from St Clair most days. The micro-climate of the Waterfront is windy and cold. I often have to put my jacket on when I leave work, but take it off again when I reach St Clair because I am hot. The cafe scene at St Clair has thrived with crowds regularly enjoying the outdoor tables. But you rarely see people outside at the Customhouse.
The Queenstown Lakes District Council has the right idea, shelving their plans for a $30 million HQ.

More On Otago Rugby's Bailout

Following on from the letter from Calvin Oaten last week, this week's Dscene has a story saying Carisbrook will be sold to the Dunedin City Council for $7 million.

Dscene asked an experienced property valuer for an estimate of Carisbrook's worth and was given an off-the-cuff figure of "ballpark $4 million".

But $7 million will enable Otago Rugby to pay off it's debts. DCC chief executive , Jim Harland, has said:

The council’s concern is to ensure the ORFU is in a viable financial position looking into the future.

If Dscene's $4 million is correct, then Dunedin rate-payers are bailing out Otago Rugby to the tune of $3 million.
Today the ODT, also has a story: "Carisbrook Deal believed to be $7 m" (but does not acknowledge Dscene's scoop).

Mr Harland said the sale price was not included in the $198 million cost of the new Forsyth Barr Stadium, and was "based on" a market value agreed after the council sought "valuation advice".
Mr Harland would not say whether the price was inflated beyond market value to help the ORFU clear its debts. "I can't comment on that question. I'm not saying no, and I'm not saying yes."

Note that it is "valuation advice", not a valuation.
Factors which have reduced the market value of Carisbrook include:

• The currently depressed property market, particularly for development land
• The difficulty of obtaining finance
• Rising interest rates due to world-wide Government deficits
  
• The cost of demolishing the existing structures
• The involvement of the Historic Places Trust
• The industrial zoning of the site
• The two-year wait for Otago Rugby to vacate the site

There are still many questions to be answered:

• How will the Council fund the purchase?
• Will the rent paid by Otago Rugby cover the operating and holding costs?

Watch this space.