City council claims costs from F&P

The Fisher & Paykel sign at Wall St. PHOTO: PETER MCINTOSH
The Fisher & Paykel sign at Wall St. PHOTO: PETER MCINTOSH
Fisher and Paykel Appliances has moved 13 call centre staff out of Dunedin's Wall Street mall, but says it remains committed to the city and the future looks bright.

But the Dunedin City Council says it will seek to recoup $75,000 from the company, after it helped pay for planned renovations to suit Fisher and Paykel's needs that never went ahead.

The issue emerged at this week's DCC infrastructure services and networks committee meeting, as councillors considered a regular property services report by council staff.

Council infrastructure and networks acting general manager Leanne Mash, responding to questions from Cr Aaron Hawkins, confirmed Fisher and Paykel had vacated part of the council-owned Wall Street site.

Cr Hawkins also asked about the impact on earlier predicted economic returns for the city, after the council in 2014 invested $2.3 million in the mall's redevelopment to help accommodate Fisher and Paykel.

The funding allowed the expansion of the Fisher and Paykel design centre into the Penrose building next door, and created new space for call centre staff upstairs in the mall.

Ms Mash told Monday's meeting some of the renovations ``didn't go ahead, and we have asked for the return of those funds''.

Ms Mash was not able to answer further questions yesterday, and Fisher and Paykel Dunedin site manager Richard Butler was mystified by the suggestion of money owing.

He told the Otago Daily Times he had heard nothing from the council and had ``no memory'' of such a renovation plan.

All costs related to the expansion had been finalised ``long ago'', he said.

``That's entirely news to me. I have no understanding of what that would be.

``They should tell us. That's probably the first step.''

He confirmed Fisher and Paykel had moved 13 call centre staff out of its Wall Street office in February, as part of the switch to a new ``work-from-home model''.

A clause in the company's lease with the council permitted the change, which represented a ``very minor'' reduction in its footprint within Wall Street, he said.

``It's very insignificant in terms of the amount of rent we pay and the amount of space we have.''

The company had about 160 staff across both buildings, and the future for the design centre continued to be ``very positive'', he said.

``We are looking forward to further growth within the design team here in the future, and the site still suits us well.

``We're very much here to stay.''

chris.morris@odt.co.nz


 

Comments

Do people in business and/or Council accountants have memory loss? Vagueness about 75k is not appropriate, nor, ideally, is assisting private business with Public money.

Shows the DCC's focus- whack a company for $75k in questionable costs, whilst it happily spent approx $300m on a continuous loss making white elephant called a stadium. Great business acumen DCC.

I smell a dirty big fat rat with possible back handers going on that may have turned turned sour or am I reading this completely wrong? What business pays out 75K before confirming reno's have been done? Where is the corrospondance / evidence, meetings email discussions that FP owe coiner asked for Reno's and why were funds released? Who does the checks and balances to ensure things are done correctly before payment? Left hand not talking to right hand but how convenient This is more evidence the council needs a freeze on spending and an audit form people out of town and no connection with Dunedin. We often hear of bullying I have to ask is it bullying or is it people doing there jobs knowing others are ripping the system off and it is put down to bullying. Don't tell me that the department manages all this on Spreadsheets in Excel and not a suitable robust, audible application. Again this needs another Government enquiry.

 

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