TVNZ / Skycity deal is an asset dump

23 comments on “TVNZ / Skycity deal is an asset dump ”

• Comments are now closed

1. karol 1

   5 September 2013 at 10:21 am

   Thanks, Lynn. I was busy working yesterday, so missed those TVNZ press releases, and was puzzled by Drinnan’s article this morning. I also wondered why the sale of the TVNZ site wasn’t bigger news.

   There looks like a typo in this sentence:

   SkyCity are in fact paying slightly than $2 million more than the rateable value of land and improvements.

   I look forward to Turei’s likely questions to Joyce in the House today.
2. fender 2

   5 September 2013 at 10:49 am

   What a scam, and totally contrary to the original “free convention centre” bullshit. Reduced dividends from TVNZ for the benefit of SkyCity means taxpayer subsidy, plain and simple.
   • Draco T Bastard 2.1

     5 September 2013 at 12:28 pm

     It was always a scam. Its purpose was to have the taxpayers pay for the building of the convention centre with SkyCity not being out of pocket. The end result would be a massive profit for SkyCity for little or no outlay on their part.
     • Tracey 2.1.1

       5 September 2013 at 12:33 pm

       Brownlee invited interest from the private sector in Christchurch yesterday to “buy” the convention centre there. I wonder if they are climbing over each other to get it? I suspect the silence will be deafening.
     • srylands 2.1.2

       5 September 2013 at 9:45 pm

       Yes it is all a conspiracy.
       • Steve Withers 2.1.2.1

         5 September 2013 at 10:15 pm

         It’s hardly a conspiracy. They’re doing it brazenly in the open. They don’t care how corrupt they look.
         • SpaceMonkey 2.1.2.1.1

           6 September 2013 at 10:20 am

           It can still be, and is, a conspiracy.
   • David H 2.2

     6 September 2013 at 7:06 am

     The headlines should be screaming CORRUPTION! But as usual the MSM is silent.
3. tc 3

   5 September 2013 at 11:19 am

   TVNZ is a top heavy ‘has been’ transmitter of foreign content, they’d sell it if it wasn’t playing nice like it has in this deal and offering up patsy PR and soapboxes all the time on breakfast etc.

   Didn’t know they’d sold avalon. So another meagre return to taxpayers from the dominant TV operator who is flogging off it’s assets, what Joyce really meant by SOE’s paying their way has just been demonstrated. Helping the hollowmen take care of their backers.
   • Steve Withers 3.1

     5 September 2013 at 10:17 pm

     tc: TVNZ is what it is *because* National tore up the public service charter, shut down TVNZ 7 and demanded excessive dividends.

     It’s the oldest play in the book: wreck the thing….then say it’s no good.

     It’s what conservatives do to public assets. I’m surprised people like yourself still fall for it.
     • tc 3.1.1

       6 September 2013 at 6:57 am

       Stevie boy TVNZ have been in terminal decline since the 90’s, the nats came along and pushed it faster down road a road that Labour tried to stop them with a charter, too little too late.

       Theyve been wrecking themselves quite nicely so the management can take home fat packages rather then produce content that enhances the organisation and who its meant to serve being the NZ public.

       IMO labour wasted their years by not smashing in down the 2 channells divide, one is commercial and effectively is a replay machine (which tv2 was when I was in the joint) running all the imported dross helping to fund the content creation.

       The nats fan boy rick eliss fought the charter, at taxpayer expense, like telecom fought separation so i dont entirely attribute TVNZs condition to the nats its been heading that way for sonetime now.
4. Tracey 4

   5 September 2013 at 11:32 am

   Interesting to see the government which prides itself on business savvy is putting up a low reserve for the sale of the radio spectrum. I understand that if you have a decent number of bidders getting them engaged in the process can help with a higher auction price…but is the reserve usually publicised? Not at any auction I have been to… but how many parties will be vying?

   “expected to be bought by Vodafone, Telecom and 2degrees and used to support the rural roll-out of 4G mobile networks. ”

   And whose advice was it to set the reserve low?

   ” She said there were countries that had sold their digital dividend spectrum for a lower price per megahertz, per capita, though she was not immediately able to identify them.

   The price partly reflected the fact that New Zealand’s topography and population density meant rolling out networks here was relatively expensive, she said.

   Telecom applauded the announcement. ”

   Adams is aiming to get us better 4g coverage

   “These requirements are designed to ensure that at least 90 per cent of New Zealanders have access to a 4G network and faster mobile broadband coverage within five years.”

   http://www.stuff.co.nz/business/industries/9128505/Govt-denies-bargain-basement-spectrum

   Nationa party promise

   “Rolling out faster broadband

   The National-led government’s ultra-fast broadband rollout is underway. It will deliver broadband speeds of 100 Mbps to 75 per cent of New Zealanders where they live, work, and study.

   The rollout will see schools, hospitals, and 90% of businesses covered by 2015, and links to homes and remaining businesses completed by 2019″

   10 September 2009 – Joyce promised

   “Mr Joyce says he expects the following to happen within six years:

   93% of rural schools will receive fibre, enabling speeds of at least 100Mbps, with the remaining 7% to achieve speeds of at least 10Mbps.

   Over 80% of rural households will have access to broadband with speeds of at least 5Mbps, with the remainder to achieve speeds of at least 1Mbps.”

   Is the low reserve to help ensure they can meet this target?
   • tc 4.1

     5 September 2013 at 8:09 pm

     Those bloody awstralians and their bloody contractors will be blamed for that tracey even though joyce dicked around for 2 years proabably negotiating with reynolds over how much taxpayer funds chorus would get to entrench their monopoly.
5. ghostwhowalksnz 5

   5 September 2013 at 1:53 pm

   Remember the taxpayer is liable for any cost overruns on Sky Citys building.

   The details of the contract mean once the free convention centre is anything but.

   The council valuations were backdated to 2011. Just as well there hasnt been a property boom since then….. could we add 20% easily, and then there is the ‘unwilling seller’ premium.
6. Not A PS Staffer 6

   5 September 2013 at 3:09 pm

   Sky City hosted National Party Conferences many times in the past 20 years.
   Sky City hosted National Party fundraisers many times, usually with Tobacco interests buying many tables.

   Many National People got tipsy or drunk at these events.
   Many National People got friskey at these events.

   There must have been many many compromising sights seen by Sky City security on Sky City properties.
7. BLiP 7

   5 September 2013 at 5:49 pm

   ‘

   Good spotting. I had wondered just how much a building smack in the Auckland CBD was worth when I read about this latest National Ltd™ sleight of hand. I’d spotted Steven Joyce’s lie about the deal when denied that TVNZ had been allowed to reduce its dividends as an inducement to sell the land. Here he is just eight weeks ago telling us . . .

   . . . my understanding is the shareholding ministers have written to TVNZ and said “well, look, if you need, for example, to slow down your dividend stream for two or three years to enable you to do this sort of renovations that would actually allow this to happen they’d [the shareholding ministers] would be happy to do that” and that would be something for TVNZ’s board to consider . . .

   I guess Joyce is just following the example of John Key because, as with just about anything he touches,Key has presented New Zealanders with another parade of lies this dodgy back-room deal with Sky City . . .

   the Sky City deal will provide 1000 construction jobs and 800 casino jobs

   all five bidders for the convention centre were treated equally

   my office has had no correspondence, no discussions, no involvement with the Sky City deal

   I did not mislead the House (8)

   I can’t remember what was discussed at my meeting with the SkyCity Chief Executive on 14 May 2009

   I have no record of the 12 November 2009 email from Treasury advising that the SkyCity deal was dodgy and needed to be referred to the Auditor General

   there was nothing improper about the Sky City deal

   SkyCity will only get “a few more” pokie machines at the margins

   any changes to gambling regulations will be subject to a full public submission process

   Sky City has approached TVNZ about the purchase/use of government-owned land

   I did not mislead the House (9)

   this government has been very transparent about all its dealings with SkyCity

   I did not mislead the House (10)

   the Auditor General has fully vindicated National over the Sky City deal

   I did not mislead the House (11)

   the Deputy Auditor General supports the view that there was nothing inappropriate about the Sky City deal

   I did not mislead the House (12)

   I did not breach the confidentiality of the Auditor General’s Report into the Sky City deal

   the Labour Government did exactly the same sort of deal back in 2001
8. Ad 8

   5 September 2013 at 6:15 pm

   I am presuming that this decrease in square footage foreshadows a major staff and capacity downsizing of TVNZ as it continues to bleed viewers to the internet video sites and capacities. I have long since lost sympathy for TVNZ as holding public good within it.

   If I ruled the world the news would be read by Warwick Burke, every night. 😉
   • lprent 8.1

     5 September 2013 at 6:21 pm

     …foreshadows a major staff and capacity downsizing…

     That would be my bet. Also that the government doesn’t have them destined for the block any time soon.
     • Ad 8.1.1

       5 September 2013 at 7:02 pm

       Word I get on this arrangement is that Sky had only modelled and Quantity Surveyed a design based on the full land take. TVNZ were operating on a fully commercial price for their land for the lots required – and Sky wasn’t prepared to pay that.

       So Sky were then faced with a reduced footprint, uncosted, un-QS’d, and with lower yield per square metre. Which also meant precious time lost to redesigning everything.

       This, coupled with a timetable that Joyce absolutely insists on which is of course completion by November 2017 (joyous election night!), and Sky and Joyce had a major problem.

       Leverage was applied, as you’d expect: deal for the full TVNZ set of sites at non-commercial price, or no deal.

       So the Crown allowed TVNZ to lower their dividend for the year, expedite the full land holding sale, and off we go …
9. pollywog 9

   5 September 2013 at 9:38 pm

   Enough to make your blood boil, except it’s all been sucked dry by these vampires already.
10. Lloyd 10

    5 September 2013 at 10:10 pm

    TVNZ has viewshafts for its satellite dishes on that site in the District Plan. How much is that worth? was this included in the price?
    • tc 10.1

      6 September 2013 at 7:02 am

      Are they required under a digital scenario, uplinks can be anywhere if you are pointing at geo stationary satelittes if you dont need to see land based points.
11. Wensleydale 11

    6 September 2013 at 8:31 pm

    Oh no! National MPs are lying to us! *cue mock outrage and feigned surprise*

    Seriously, this is what National does. They’ve always done it, and they’ll continue to do it until the end of forever. Like spite, avarice and an irrational hatred of poor people, it’s just in their blood.

• Comments are now closed

• Log in
• Donate
• Contribute post

• Articles RSS