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.
Links:
[1] mailto:david.loughrey@odt.co.nz