Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Is this how to make a $600 million decision?

Is this how to make a $600 million decision?

by Tom Belford
April 13 2014

www.baybuzz.co.nz/archives/7341

This week, at our Wednesday meeting, Regional Councillors will be asked to set in motion a public consultation process regarding ratepayer investment in the CHB dam.

Here’s what we are expected by HBRC management to base our decision on:

1. A so-called ‘business case’ tabled by HBRIC, the holding company team promoting the scheme. What Councillors (and the public) have seen is a ‘business case’ with no supporting numbers regarding cash flows, sensitivity analyses of differing assumptions or risks, or investment returns. Indeed at this point it is not clear if there even are any investors.

When HBRIC presented its case, I offered a motion, which was voted down 5-4 (I think you can guess that line-up by now), that listed the information we Councillors needed to see and review so as to appropriately evaluate any potential ratepayer investment. I’ve attached the failed motion here.

Call me crazy, but don’t you believe this is the kind of information you would expect me and other Councillors to have and weigh? In fact, shouldn’t such information be available to you?

2. The so-called ‘Nimmo-Bell’ report on alternative investments HBRC might consider to advance economic development goals for the region. This report was so hastily prepared, devoid of information, and lacking in analytic rigour that it was ridiculed by some Councillors, while others apologised to the hapless consultant for giving his team an impossible task. I termed it a ‘fool’s errand’. Even at that, the report concluded that the economic benefits of the scheme — jobs, GDP growth, etc — had been over-stated in HBRIC studies by 20%.

3. And now on Wednesday we are scheduled to receive a verbal ‘interim report’ — that’s right, a verbal report — from our other consultants, Deloitte, who have been charged with giving Councillors (and the public) an independent peer review of the HBRIC ‘business case’. In other words, we’re getting a verbal report reviewing a business case Councillors have yet to see in any reasonable detail!

On the basis of our insights from the above, Councillors will be asked on Wednesday to endorse commencement of a public consultation process that, technically, would test public views on HBRC investing up to $80 million in the proposed dam, but effectively will serve as the public test of proceeding with a $600 million, all in, irrigation scheme in Central Hawke’s Bay.

It would seem that HBRIC and our Regional Council chaperones are determined for Councillors to be as uninformed as possible in making this decision. Do we have ‘STUPID’ stamped on our foreheads or what?!

Indeed, this process has all the elements of a brilliant case study for the Auditor General … How NOT to make a $600 million decision!

I know that some Councillors take our fiduciary duty seriously. They believe as firmly as I do that this process is a travesty. We will do our best to ensure that we and the public are far better informed before we make any kind of decision regarding whether this proposal deserves to go forward to public consultation.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

More Evidence - Scoop Press Conference Recordings:
PM's Post-Cab Presser 8/8/11
"at that point [Tucker] told me he'd release it ..."

Hager Revelations: Inquiry Into NZSIS Release Of Goff Docs

The Inspector-General of Intelligence and Security (IGIS), Cheryl Gwyn, announced she would be instituting an inquiry concerning allegations that the New Zealand Security Intelligence Service (NZSIS) might have released official information to Mr Cameron Slater, regarding briefings provided to the then Leader of the Opposition, for political purposes...

“I am satisfied there is a sufficient public interest justifying the commencement of an own-motion inquiry into the substance of the issues raised with my Office,” said Ms Gwyn. More>>

Goff: Director’s Letter Contradicts Key’s Claims

At yesterday’s media standup, when asked on the topic John Key said ‘I wasn’t told’...
“In a letter dated November 2011 former SIS director Warren Tucker states three times that ‘in accordance with the usual practice of keeping the minister informed’ the Prime Minister had been told. More>>


 

Parliament Today:

Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

ALSO:

Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

Earlier:

Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

ALSO:

Fish Pun Warning: By Hoki! It’s Labour’s Fisheries Policy

A Labour Government will protect the iconic Kiwi tradition of fishing by improving access to the coast, protecting the rights of recreational fishers and reviewing snapper restrictions, Labour’s Fisheries spokesperson Damien O’Connor says. More>>

ALSO:

It's Official: Governor General Gives Direction To Conduct Election

The Governor General has signed the writ directing the Electoral Commission to conduct the General Election on 20 September 2014. This is the formal authority to run the 2014 election, and enables candidate nominations to open tomorrow Thursday 21 August 2014. More>>

Gordon Campbell: No More Mr Nice Guy

When future historians seek to identify the exact moment when the prime ministerial career of John Key hit the downward slope, they may well point to Key’s interview yesterday with Guyon Espiner on RNZ’s Morning Report. More>>

ALSO:

Dirty (Politics) Weekend: Collins’ Admission Reason For Key To Act

"Despite claiming that the evidence about her in Nicky Hager's book was ‘false’ Judith Collins has now been forced to admit that she did send information about a Ministerial Services staff member to Cameron Slater for him to use in a baseless smear campaign. More>>

ALSO:

Potential Disasters: Underground Coal Fire On Denniston Plateau

Forest & Bird says one or more coal fires have broken out beneath the Denniston Plateau, and that the Department of Conservation (DOC) must stop Bathurst Resources’ preparatory mining work going on there until the fire or fires are extinguished. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news