Still Too Much Subsidy

The Otago Polytechnic Students' Association (OPSA) is pleased to see that DCC Councillors are favouring halving the amount the DCC is proposed to subsidise the new stadium project. However, OPSA claims that the newly proposed amount of around $50 million is still far more than the City can, or should, afford.

"The newly proposed subsidy needs to be halved again. The City is currently struggling with its $100M debt, it simply makes no sense to go a further $50M in debt for a project that really brings nothing new to the city" said Richard Mitchell, OPSA president.

Over half of OPSA members do not believe the stadium should receive any rates - sourced funding at all. The overall average subsidy OPSA members believe is appropriate for local bodies to contribute is around 10%; less than half of the newly proposed amount of $50M.

A further concern to OPSA is that any proposed subsidy must be fixed. OPSA believe the calculated cost of the proposed stadium is unrealistically low and the actual cost will be much higher. OPSA urges the DCC and ORC to limit any contributions to a fixed dollar amount, rather than a percentage of an unknown - and potentially spiralling – amount.

"Any local body contributions must be absolutely fixed amounts; to promise an essentially open cheque - book would be totally unacceptable" said Mr Mitchell.

ENDS

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