The chairman of the Dunedin City Council's finance and
strategy committee has again raised the prospect of cashing
in the $71.2 million Waipori fund.
Cr Richard Walls told councillors at this week's committee
meeting possibilities for the fund's future use should
"always exercise our minds".
Standard and Poor's - which most recently assessed the
council's financial position in December last year -
considered the Waipori fund an asset able to be liquidated
and used to pay off debt, Cr Walls said.
Against that were many reasons not to cash in the fund,
including the steady income the council received from
investments made using the fund, he said.
"It may well be a new council may need to look at what the
intentions are with the Waipori fund.
"It's something that should always exercise our mind," he
said.
It is not the first time the idea has been raised.
In 2007, just weeks after plans for the Forsyth Barr Stadium
were announced, it was suggested - again by Cr Walls -
consideration be given to cashing in the fund and using the
money to pay for the stadium.
Others councillors argued against such a move.
A working party was established to examine the idea, but the
fund has remained in the years since.
On Saturday, the Otago Daily Times reported the fund ended
the first six months of the financial year with a surplus of
$5.2 million.
The fund was established in 1998 from the proceeds of the
sale of the Waipori electricity generation scheme and shares
held in the former electricity retailer, United Electricity.
