The Dunedin City Council will not be seeking repayment of
the $400,000 debt it wrote off to save the Otago Rugby Football
Union even though it was now back in the black.
Two years ago, the union nearly went out of business but was
saved by a rescue package brokered by the city council, with
help from the New Zealand Rugby Football Union.
On Thursday, the ORFU announced it had recorded a $400,000
profit, had $500,000 in reserves and was expecting to make
another small profit this year.
Dunedin Mayor Dave Cull said the union's result showed the
deal the council made to write off its debt of more than
$400,000 had worked.
While the council wrote off the money, in return it received
All Blacks tests, proceeds from a North v South game, a
long-term tenant for the Forsyth Barr Stadium and an assured
future for the union, he said.
There was no way the council would ''welsh'' on the deal to
bail out the union, he said.
''To decide we want our money back would ensure it failed.
''We can't have it both ways.''