Staff praised for role in gaining stadium tax break

The Forsyth Barr Stadium. Photo by Peter McIntosh.
The Forsyth Barr Stadium. Photo by Peter McIntosh.
Otago Regional councillors have praised staff for work which could see ratepayers' contribution to Forsyth Barr Stadium effectively halved.

The Commissioner of Inland Revenue has ruled that the council's contribution to the Carisbrook Stadium Trust for the new stadium is tax deductible.

It was estimated the cash return over time could be 30% of the $37.5 million contribution given the continued profitability of the Port Otago Group.

Councillors, at a meeting of the finance and corporate committee yesterday, praised the work and advice of corporate services director Wayne Scott and his staff to ensure the council was in a position to take advantage of the tax break.

Chairman Stephen Woodhead said the best investment anyone could make was to pay off debt quickly, reducing interest costs.

Under this ruling, if the council was able to fully utilise it, it would "basically cut ratepayers contributions in half", he said.

"That is significant."

Mr Scott said in a best-case scenario, it should cut the term of the council's loan for the stadium from 15 years to eight or nine.

Cr David Shepherd said by shortening the term of the loan, it distributed the benefit of the tax break to all ratepayers in Otago.

The council had been funding its contribution, of which it had paid $27 million so far, from internal council reserves, while waiting for the commissioners' ruling.

Mr Scott said staff were now going through the best way to fund those contributions and revisiting the need for the external borrowing council originally intended to use.

Chief executive Graeme Martin said if the council did not need to externally borrow, it would not.

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