Stadium trust’s $15m loss revealed
The trust in charge of Taranaki’s Yarrow Stadium has shown a $15 million loss over the past 12 months, but could be liable for more if the site’s two main stands, closed as an earthquake risk, are repaired or replaced.
‘‘What started as a good year finished on a down note,’’ Taranaki Stadium trustee Mike Nield told a Taranaki Regional Council executive, audit and risk committee meeting yesterday.
Nield presented the Taranaki Stadium Trust’s (TST)
2017/2018 annual report. It showed the East and West covered stands had been ‘‘conservatively’’ assessed for impairment, or operating loss, of $15.7m. The total value of both stands, before impairment loss was known, was $26.1m.
The report showed total debt liabilities of $4.99m, including $3.95m in borrowings, and cash and debtors assets of $359,000.
TST and auditors estimated the East Stand had a 90 per cent loss of value, and the West Stand
50 per cent, Nield said.
The estimated figures were based on the best information available to the TST at the time.
TST will not know until February 2019, after work has been finalised on repairing, or replacement options, if the estimated loss of value of the stands was ‘‘too little, too much or just right’’, he said.
The actual level of impairment loss is likely to be different, based on whether the stands will be repaired, or reinstated.
Options available on what will happen to the two stands, which were off limits to spectators during the Mitre 10 Cup rugby championship, should be known in the early new year, he said.
The TST was committed to repairing or reinstating the stands and was looking at options to return Yarrow Stadium to a fully operational venue, he said.
Nield said the initial focus for the TST, once the risk had been assessed, had been to ensure the safety of the public.
The TSB, the trust’s bankers, had been informed throughout the process and were ‘‘comfortable’’ with what was happening, Nield said. ‘‘They understand the auditor’s valuations and what the trust is doing.’’ The two parties had last met a week ago, he said.
Committee chairman David Lean said strong leadership was now needed to resolve the issue.
‘‘It is going to take strong leadership and people to put their shoulders to the wall to protect our own people and do the hard yards,’’ he said. ‘‘If Yarrow Stadium falls over, anyone outside Taranaki wouldn’t give a damn.’’
The key point was to keep all parties fully informed and communications open, TRC CEO Basil Chamberlain said.
Yarrow Stadium is owned by the TST, and operated and managed by New Plymouth District Council. The trust received $876,000 in annual operating grant from Taranaki Regional Council.