A stadium opponent has questioned a series of historic
administration cost payments from the Dunedin City Council to
the trust in charge of the Forsyth Barr Stadium's
Bev Butler says it remains unclear what exactly the payments
to the Carisbrook Stadium Trust (CST), mostly labelled
''trust costs'', were for.
The payments, ranging from $40,000 to $80,000 a month, were
made between 2007 and 2011.
Mrs Butler said she had asked the council under the Local
Government Official Information and Meetings Act for a copy
of the third party invoices to support the payments to the
CST, but the council responded on February 10 that it did not
require individual invoices because there was an agreed
schedule of payments intended to ''facilitate ease of
administration''. A CST spokesman contacted yesterday said
the paperwork was there and would be made available soon.
The council paid set monthly fees to CST for administration
costs until Dunedin Venues Management Ltd was set up.
A budget showing the schedule of monthly payments itemises
the payments as ''trust costs'', with no further detail.
The 2012 PricewaterhouseCoopers (PwC) review of the stadium
also considered the same costs, which it classified broadly
as ''trust and administration costs'' describing them in its
report as fees for travel, marketing, staff, project
planning, set-up, costs related to property purchase and
The schedule of payments was part of a report presented to
the council and noted by it in February 2009.
The PwC report, which considered the council's handling of
the stadium's development, noted it was not unsurprising CST
was incurring such costs as staff were employed, marketing
programmes were developed and under the Service Level Deed,
CST, as the council's special agent, took significant
responsibility for the project.
The budget was not considered in detail by the council and it
was one of the areas of significant budget overrun within the
A 2009 cashflow report suggested the total trust and
administration costs for CST for the project should be $3.7
million, but in the end they were $5.4 million, the report
It highlighted and criticised process and budget issues in
the administration costs area.
In his pre-election report to the council last year, then
chief executive Paul Orders said the council accepted PwC's
observations, including that lines of accountability were
unclear, and lessons were learnt from it.
In any future project the council would make a stronger
contribution to project management arrangements and have more
oversight so it was better able to control costs and budget
A council spokeswoman said the CST contacted the council
yesterday and staff would work with the CST to go through
relevant paperwork in coming weeks.