Events Centre flier inaccurate & misleading - 13/11/2008

"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."