The Otago Rugby Football Union should be in a good position
to produce revenue after two years of financial underwriting
by its parent body, Dunedin City Council chief executive Jim
Harland said last night.
The New Zealand Rugby Union revealed this week the
Highlanders franchise would receive financial underwriting
for two years, and its board would be overhauled.
As well, the council, which has bought Carisbrook and is
part-funding the Forsyth Barr stadium, will get to appoint a
director to the Highlanders' board.
Mr Harland said Dunedin councillors were appointed to a wide
variety of boards.
An example similar to the Highlanders was the three trustees
appointed to the Edgar Centre.
The appointee's role would be to work in the interests of the
company, which the franchise was.
From the council's point of view, it wanted to ensure the
ORFU, a major user of the stadium, was in good shape.
Asked whether having a council appointee on a rugby franchise
was unusual, a spokeswoman for Local Government New Zealand
governance manager Mike Reid said tit was quite common for
councillors to take on such directorships, and the situation
was "above board".
A problem could arise could be if a board was applying for
council funds but, in that situation, the council-appointed
director would have to stand aside from discussion.
david.loughrey@odt.co.nz
