Multinational to cater for stadium appetites

David Davies
David Davies
Catering at Dunedin's Forsyth Barr Stadium will be provided by the New Zealand subsidiary of a multinational company with an operating profit last year of more than 1 billion ($NZ1.89 billion).

Dunedin Venues Management Ltd (DVML) has awarded the contract to the Compass Group New Zealand, which will provide services at the stadium for the Rugby World Cup and beyond.

DVML yesterday confirmed the company would be investing more than $3 million in equipment and fitting-out at the venue.

A Compass spokesman yesterday said it had employed more than 700 people for the Rugby World Cup alone, but would retain a "substantial pool of casuals [more than 100]" after that.

The "overwhelming majority" were local.

The Dunedin City Council-owned company's decision to choose a non-local company for the work was defended by acting Mayor Syd Brown, who said the contract for the work was tendered locally and nationally, and Compass was chosen as the best option.

DVML chief executive David Davies said local companies were "unable to meet our requirements".

Compass has applied for a liquor licence for the stadium under the Rugby World Cup 2011 (Empowering) Act 2010.

The company initially said it did not talk to media, but agreed to answer questions submitted by email.

It said the employees hired would perform roles including venue manager: chefs; hospitality managers; bar staff; kitchen staff; administration staff and waiting staff.

The cost of the contract was "commercially sensitive" but was for the Rugby World Cup and beyond.

The spokesman confirmed the company had made a contribution to the fitting-out costs, and would provide food, liquor, functions and events catering services in general.

Compass had longer-term contracts for four other stadiums in New Zealand.

The catering contract for the stadium, to be called the Otago Stadium during the Rugby World Cup, has a fraught history.

In March, DVML asked the council for "extras" for the stadium with a combined cost of $5.15 million, which were approved.

A report to the council earlier this year said the caterer had been selected through a competitive process, and the "offer that has emanated from this process" would see a $3 million capital contribution, in addition to revenues.

But equipment, refrigeration, fitting-out, a beer system and "changes to the base build" - it later emerged builders had to demolish aspects of the catering area and start again - meant a further $2.4 million was required.

DVML said at the time the takings from the caterer, over 10 years, would come to almost $4 million.

Asked whether he had concerns about the contract going to an multinational company, Cr Brown said from a political viewpoint, the answer was "very simple".

"We gave the responsibility of running the stadium to the DVML management group.

"They went to tender for every provider.

"It was tendered locally and nationally and they went with Compass."

Part of the contract required the company to invest in "a considerable amount of plant" at the stadium.

"It's a major commitment to Dunedin city."

DVML chief executive David Davies yesterday said the process to award and finalise the catering contract was "now in its final stages".

"A robust and competitive tender process was carried out in accordance with DVML's procurement policy and procedures.

"These are very similar to the Dunedin City Council's."

Asked if there was not a local company that could have taken the tender, Mr Davies said there were several expressions of interest from the initial tender process - of those two were local.

"After presentations, we then reviewed final tenders. However, the local companies were unable to meet our requirements.

"Negotiations have been concluded with our preferred partner and the contract is now going through the final signature process with the respective companies." The length of the contract could not be confirmed last night.

The Rugby World Cup 2011 (Empowering) Act means objectors to liquor licences will have a harder time than usual being heard.

The Act contains criteria regarding a person's standing to make an objection, so "only a person who has an interest greater than the general public may object to an application".

Licences come into force on September 9, and expire on October 31.

Objections close at 5pm tomorrow.

david.loughrey@odt.co.nz

 

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