Conduct of companies questioned

Lee Vandervis
Lee Vandervis
Under-fire Dunedin city councillor Lee Vandervis has raised the prospect of a no-confidence motion in the city's ''completely uncontrollable'' council-owned companies.

The issue emerged as councillors at yesterday's Dunedin City Council meeting considered a draft letter of expectation to be sent by the council to Dunedin City Holdings Ltd.

The letter outlined 10 key expectations for the city's council-controlled organisations, including the need for a long-term financial return to the council, to maintain fiscal discipline and to keep the council informed.

Cr Vandervis took issue with most items on the list yesterday, including pointing to the lack of dividends from the companies to the council in recent years.

He also claimed to have evidence showing council companies were not fiscally disciplined, and that his requests for information from Aurora - seeking reports into the company's pole replacement programme - had been ''stonewalled''.

Asked by Cr Vandervis what could be done to address those concerns, council finance and commercial general manager Dave Tombs said, ultimately, the council had the power to remove its companies' directors.

Mayor Dave Cull said such a move would require the support of a majority of councillors, but if Cr Vandervis had evidence, he should bring it forward.

''I'm rather keen that something does happen,'' Cr Vandervis replied.

However, other councillors pointed out the council already had regular meetings with DCHL representatives, where such concerns could be raised, and Cr Vandervis was entitled to attend.

The most recent of those was held yesterday morning - just hours before the council meeting - but Cr Vandervis was not there.

Cr Vandervis said that was because he feared information he already had would be discussed at those meetings, and then deemed confidential, preventing him from disclosing it.

Others took a different view, including Cr Kate Wilson, who said the council's communication with its companies was potentially the best it had ever been.

Cr Christine Garey said councillors had plenty of opportunities to ask ''searching questions'' of council company representatives, including at yesterday's briefing.

''It's not a big deal. It can be done.''

However, the onus was on councillors ''to act responsibly and not go down the conspiracy theory pathway'', she said.

Mr Cull said it was ''patently ludicrous'' to suggest the council's relationship with its companies was unchanged from years earlier, when the council had overhauled its company structure.

That had been ''less than ideal'', and the council was ''still on that journey'', but ''the situation is considerably better now'', he said.

chris.morris@odt.co.nz

Comments

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Fiscal responsibility isn't as trendy these days, but when the next economic downturn comes, Dunedin and its Debt, will come to a head.

Try finding the DCC Group's financial statements on the DCC website? Deliberately difficult to find as it contains debt bombshells. DCC needs to return to core services and not providing funding and assets to every lobbying group under the sun. Vote those with no fiscal understanding out before they bankrupt us or this city!

Well said. I fully agree.

Wake up some of you on council ' councillors pointed out the council already had regular meetings with DCHL representatives,' A big difference to having a meeting and getting the information requested and getting stonewalled. Keep on a steady course Councillor Lee Vandervis keep battering those storms, I'm sure all the effort you put in on behalf of the Dunedin Rate payers will be rewarded.
Cull said it was ''patently ludicrous'' to suggest the council's relationship with its companies was unchanged from years earlier, when the council had overhauled its company structure. if that was the case why has it taken so long to get to that and it still is not correct as Councillor Lee Vandervis has pointed and is pointing out what needs to be done. If you had clues Cull you would have sorted this years ago, you are the leader of the Dunedin Council or are you just a figurehead?

They are our companies, DCC companies, we should have open disclosure of information between the DCC owned companies and DCC per se. Otherwise, it is all and still a nonsense that has not been willingly addressed, why is that?

‘Conspiracy theory’ is a loaded and pejorative term. It is used to discredit and discount people who express a need to undertake institutional analysis. A bit like ‘gaslighting’ where a person is told they are just imaging it.

The worst thing is that the DCC - and this is under Dave Cull’s mayoralty - has underwritten council company debt.

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