Home - Media ReleasesResults of "Referendum 08"
“Now for the hard part: interpreting the mixed messages”Mayor Michael Laws today released the results of ‘Referendum ‘08’ and said that “interpreting these figures – and what they really mean – will challenge the council over the next couple of months. They were not quite as clear cut as we might have wished”.
Highlights of ‘Referendum ‘08’ are as follows:
Mayor Laws said that “interpreting these results – and then placing them in the context of the council’s Ten Year Plan – is going to be something of a challenge. It is problematic when the most preferred option gets just over one-third of all votes cast, when there are only five options. Council would have preferred a clearer public choice.
- The Events Centre/Velodrome was the most popular project with 37.7% (5,235 votes) of all first preferences cast;
- It was also the most popular of all total choices (first, second & third) at 67.0% but closely followed by the Kowhai Park development (63.0%);
- The least popular project (both as a first choice and total choices) was the new library project to be sited in the central city;
- The voter turn-out was 14,436 voters – 46.3% of the electoral roll.
“That said, it may be that all projects are considered to be worthwhile. In the total choices category, four of the five projects rated above 56% and the spread was between 67% for the Events Centre/Velodrome and 56% for redeveloping the existing library. But we now know that there is no public desire for a new library.”
Mayor Laws also noted that the voter turn-out “was the lowest of all yearly referenda that we have held. The high point was 55.4% (17,037 voters) in 2006 – this year was the first time that turn-out was less than 50%. That may, in itself, tell us something about community enthusiasm for the projects advanced”.
“The council is undergoing severe financial strain at the moment – mostly due to the $120 million wastewater/stormwater separation project, and current economic conditions. I’m not going to prejudge council decisions on any of these referendum projects .
“All I’m going to say is that there are mixed messages in this result, but that I intend that council understands every one of them.” Full results here
Events Centre flier inaccurate & misleading - 13/11/2008
Mayor Michael Laws has today blown the whistle on Events Centre/Velodrome lobbyists "for circulating a misleading and inaccurate pamphlet" in support of the referendum option."I ask Wanganui voters to take their financial and impartial information only from the official council publication, delivered into household letterboxes. The claims in the current flier are highly misleading.
"I am also very concerned that lobbyists have appropriated the council 'Referendum '08' colour scheme to make it appear that the flier is an official council publication. It is not."
Mayor Laws said the most serious inaccuracies in the Events Centre flier "relate to the cost of the project, its economic benefit, its ongoing funding and its guarantees. None of the pamphlet's stated claims can be verified".
The inaccuracies are:
1. Flier claim: "The Events Centre will cost $20 million to build – guaranteed!"
Truth: Council has estimated the cost at $22.1 million and project costs are indicative only. We cannot guarantee that sum.
2. Flier claim: "It will inject 40 million additional dollars into the Wanganui economy in its first 10 years."
Truth: The council – using the working parties own figures – estimate the net (ie additional) worth of the project to be $1.5 million per annum not the $4m pa claimed in the flier.
3. Flier claim: "... inject 40 million additional dollars into the economy ...
Truth: Misleading for another reason – it requires a private entrepreneur to stage seven (7) concerts attracting 2,000 persons each and paying $100 a head ... to make the Events Centre figures and operational finances work. This is highly unlikely and there is no indication as to who would take on such a private financial risk. Council certainly will not.
4. Flier claim: "after year 5 the ratepayers will pay NO operational costs – Instead – we start to return a profit."
Truth: Misleading for above reason 3). It requires these expensive, well attended concerts to make it work. 40(forty) concerts @ $100/head x 2,000 people in the first five years.
Mayor Laws said that he supported and encouraged public debate on the 'Referendum '08' options "but this flier is an attempt to mislead the public of Wanganui. The claims have not passed muster at either the council's financial or political levels, and they should be discounted."
Council Extraordinary meeting – 17 November 2008
EVENTS CENTRE WORKING PARTY
Julian Harkness, Chief Financial and Corporate Services Manager, reports as follows:
What is the relationship of the Events Centre Working Party to Council?
The Events Centre Working Party (ECWP) was set up as a sub-committee of Council in the Sport and Activity Committee minutes of 17 October 2006. The members of the Committee were Crs Baker-Hogan and Wills, Messrs Cheatley, Stoneman and Hughes, and Chief Executive David Warburton.
It was assumed that the Working Party ceased to be a sub-committee after the Sports and Recreation Committee ceased to operate. There was also no appointment when Council reviewed all its committees in the Council resolution of 12 November 2007. However, in May 2008 Council meeting, there is tacit approval of a working party to further develop the Events Centre concept. The resolution was to “support endeavours by the Working Party to identify and quantify external funding operations”.
How is the ECWP funded?
The ECWP itself has little cost as ECWP members volunteer their time and Council staff provide administrative assistance. Funding for the project is from the Council’s Sportsground budget – see below.
How much Council money has been expended through the Events Centre Working Party, on researching the option?
The Velodrome Events Centre study has a Council approved budget of $210,000 over two financial years. There is also Central Government funding of $100,000.
The funding has been spent on:
Model Fact Finding Concept Design Contour Check Economic Impact
To whom does the economic benefit study (done this year) belong – Council or Working Party?The economic benefit study was paid for out of Council funds. The draft report was initially sent to ECWP for their comment prior to a final report being issued. The report was commissioned by and addressed to “Wanganui District Council”.
Has the Council “guaranteed” the cost of building the centre at $20M? If not, why not?
Council has not guaranteed the cost of building the Event Centre at $20M or any other figure. It is not possible to guarantee the costs as there are far too many variables.
Is the net additional economic benefit of the Events Centre $40M over the next ten years? If not, what does the economic benefit study estimate it to be?
The Economic Benefit Study is based on five years after the Events Centre was built. The net additional economic benefit of the Events Centre is $1.5 M per year with 38 FTE jobs created.
The additional economic benefit is the Local Gross Domestic Product added by this project.
The report also includes a measure of total output. This is the total “spend” in the district and is not a good measure of additional economic benefit.
The study estimates economic benefit to be $1.55 M a year in Year 5 and it would be lower amount in Years 1 – 4.
From the report, economic benefit of $40 M over 10 years is unlikely. Economic benefit over 10 years is likely to be up to $15 M.
Are the yearly operational figures – and the breakeven point – dependent on seven concerts per annum for 2,000 persons at $100 per ticket each? Is that every year of the first five years?
No, the operating revenues of the Events Centre are not affected by the 2,000 people at $100 per ticket as this money goes to the promoter. However, the 2,000 people and $100 ticket does affect the economic benefits to the city.
The economic benefit report assumes seven concerts per year from Year 5 onwards.
If the concerts do not happen, what does the economic benefit study assume to be the net (additional) revenue and FTEs?
The table shows the total economic benefit, the economic benefit of the concerts and the net economic benefit excluding the concerts.
Total Concerts Net Total value added output
(household income)$1.55 M $0.82 M $0.77 M FTE jobs created 38.0 20.1 18.0 Did any Council staff prepare or assist in the preparation and distribution of the Events Centre pamphlet?
Staff allocated to help each referendum item were:
Kowhai Park Charlotte Almond Mosston Road / Fitzherbert Ave Rui Leitao Library Sally Patrick Events Centre Keith Smith Were any of the claims in the Events Centre promotional pamphlet checked by any Council financial or managerial staff?
No claims were checked by Council Management or finance staff.
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