There are obvious lessons to be learned from Aurora debacle
I HAVE been following the discussion surrounding requests that the Dunedin City Council repay dividends received from Aurora, arguing that these dividends were only available from neglected lines maintenance.
In my view, the origins of this can be traced back to the ideological view promoted by Max Bradford that the splitting of lines and energy would result in a more competitive electricity market.
As a result of the ensuing legislation, the DCC decided to sell its Waipori generation, and begin to actively pursue buying additional lines networks, using aggressive pricing calculations to justify prices that not only gained it the Central Otago network, but eventually led to it making a hostile bid for Otago Power Ltd — a consumer’s cooperative based at Balclutha (it failed with the latter, and as a Dunedin ratepayer at the time, I was pleased to see it sold elsewhere).
Many in the industry wondered how the DCC could justify the high price paid for the Central Otago network, unless it hoped to be able to ramp up charges to customers, at a time when the Commerce Commission was saying it would not permit unreasonable price increases.
When a wellknown firm of accountants volunteered to come and ‘‘explain’’ to Otago Power Ltd the complex calculations used to justify the elevated prices offered by the DCC for lines companies, many of us just shook our heads in amazement.
I believe time has revealed the strategy involved and how the networks apparently made returns on a very expensive acquisition.
There are two fundamental lessons to be learned from this. Local bodies should stay out of commercial activities and stick with their knitting; and be wary of allowing complex arguments from accountants (and others) overriding the commonsense viewpoint.
Central iSites
K. Lawson
Oamaru
I WAS surprised to hear speculation that the Central Otago District Council had decided to close the Alexandra and Cromwell iSites.
I have seen first hand just how many queries the Alexandra iSite staff, in particular, attend to, from locals and visitors alike. Everything from booking buses, accommodation and rail trail bookings to what is there to see and do, and where is the nearest supermarket.
Surely, part of the CODC’s mandate is to support and promote local businesses. The iSites are an integral part of this support — steering visitors to use local businesses for food, accommodation and entertainment.
Where are visitors to Alexandra and Cromwell to go now when they want good advice from people who have spent much time building up their local knowledge of the Central Otago area?
Please think again, CODC, before you put up the road blocks to the iSites.
Kari Sheat
Alexandra