How Homebush Was Reported/Secured... (merged x2)

[Average Punter]

The Audit Report is available here if you're interested...

[bestfit]

Originally Posted by D.R.T.

The most telling part of the report.

Quote:
Negotiations for the event were pursued by disgraced senior government minister Ian Macdonald, who recently quit the government amid questions over expenses claimed for a trip to the Middle East and Europe.

Except that it isn't part of the report, but merely part of the SMH article.

[D.R.T.]

Originally Posted by bestfit

Except that it isn't part of the report, but merely part of the SMH article.

Very true. Apologies for that mix up.

[cavvy]

http://www.audit.nsw.gov.au/publicat...release_v8.pdf

http://www.audit.nsw.gov.au/publicat...s/foreword.htm

http://www.audit.nsw.gov.au/publicat...rs/execsum.htm

http://www.audit.nsw.gov.au/publicat...execsum.htm#v8

http://www.audit.nsw.gov.au/publicat...execsum.htm#v8

[Oldtony]

Originally Posted by Tourer

Here's the link to the actual audit report rather than media reporting:
http://www.audit.nsw.gov.au/publicat...s_contents.htm

Has the feel of a few public service mandarins standing around throwing jelly at each other.

Very true!
But of course a mandarin always leaves unsaid that he was only obeying ministerial instruction. Ministers on their part these days have very little compunction in blaming the "advice" they were given.
No matter how you read it you must come to the conclusion that the Events Corp. and State development were under ministerial pressure to deliver the event in spite of the advice they were recieving.
The contract would appear to be firm for 5 years. Even when O'Farrel takes over I doubt he would be able to dump it unless VESA/SEL are unable to produce the show.
The long term problem for VESA is the rapidly diminishing fund of political capital they have left on the back of this report, together with Barbagello, Ipswich and the Gold Coast.
Clipsall, Darwin, and so far Townsville would appear to be the only events run in conjunction with a government that are not under some sort of cloud related to budget over runs or not meeting expected targets.

[cavvy]

Originally Posted by alfacors

Maybe because this discussion is full of myths and half-truths and what people *want* to believe is happening - because NO ONE here KNOWS what is in the report, no one has read it, and is spouting off over stuff they ASSUME to be correct, or have deduced from newspaper clippings and their own personal preferences or agendas.

Sorry for having a sense of humour cavvy, I'll try to refrain from showing it on here as it clearly upsets you.

Carry on with your carrying on people......

Apology accepted, carry on.

[alfacors]

I think it's gone quieter here now as everyone's having a read of the report now it's online. Must admit, I doubt I would bother and probably just read the summary/conclusion parts later on. Does anyone think it will actually have any impact on the event though?

[Tourer]

Originally Posted by alfacors

I think it's gone quieter here now as everyone's having a read of the report now it's online. Must admit, I doubt I would bother and probably just read the summary/conclusion parts later on. Does anyone think it will actually have any impact on the event though?

Probably depends on politics - given that state development are funding it and that they disagree with the auditor, I guess that they'll continue on as now unless instructed otherwise by their minister - kinda the point that Old Tony was making above.

Must say, it does sound from the position taken by state development that the auditor may have decided to measure govt inputs differently for this event than has been the case in the past.

Lord only knows where the truth sits.

[Robert Ryan]

The contract would appear to be firm for 5 years. Even when O'Farrel takes over I doubt he would be able to dump it unless VESA/SEL are unable to produce the show.

A case of on with the show.

[dsg]

Originally Posted by alfacors

Does anyone think it will actually have any impact on the event though?

No.

I think the event itself is fine and will pretty much continue as is. The report does not have any problems with the event just how it was negotiated into being by the government.

[cavvy]

Originally Posted by dsg

No.

I think the event itself is fine and will pretty much continue as is. The report does not have any problems with the event just how it was negotiated into being by the government.

Agreed with two reservations:
1. Government unlikely to cut VESA any slack.
2. Change of government may work in VESAs favour, new pollies looking for hero status.

My interest is the effect on VESAs strategy of looking for State Government money to underwrite events e,g Gold Coast, Hamilton, Ipswich & WA.

[D.R.T.]

Originally Posted by dsg

No.

I think the event itself is fine and will pretty much continue as is. The report does not have any problems with the event just how it was negotiated into being by the government.

That and the event not providing the economic benefits and interstate visitors as predicted by the promoter by as much as a quarter.

I'm not suggesting that the Government will drop the event after year 1 based on this was a significant factor in the ongoing support of government

[alfacors]

So from what I can see, the report basically finds X result, which is defended as Y result, and the recommendations moving forward are "noted" but not acted upon. So we end up back at Square One?

[bestfit]

Originally Posted by D.R.T.

That and the event not providing the economic benefits and interstate visitors as predicted by the promoter by as much as a quarter.

Not correct (assuming that by promoter you mean VESA and not Events NSW).
The report was critical of the accuracy of the economic predictions provided by Events NSW to the NSW Cabinet. In the "Audit Conclusions & Recommendations" under "Response from the Department of Industry & Investment NSW" they go into detail on the methods used to calculate the figures, they were not simply provided to Events NSW by VESA and then passed on to cabinet.

This whole issue really has nothing to do with VESA. The Auditor's report was commissioned to look at how the government negotiated a major event. There is nothing negative in the report regarding VESA's involvement in the process.

[dsg]

Originally Posted by D.R.T.

That and the event not providing the economic benefits and interstate visitors as predicted by the promoter by as much as a quarter.

I'm not suggesting that the Government will drop the event after year 1 based on this was a significant factor in the ongoing support of government

As bestfit said the predictions came from within the government. That being said the event still seems to provide a benefit, which is a positive, just not as must as originally thought.

[Woolley]

Assuming it's the same as here, an auditor's report won't be interested in the comparison between EC and Homebush, or whether it made money or was popular. It will only be interested in whether due diligence was applied, whether the appropriate financial consideration were applied in the first place and if the results didn't match the forecasts, whether that difference was foreseeable or foreseen.

If the event could be expected to incur a financial loss isn't even a important as such, as long as that loss was taken into consideration in making the decision and was based on accurate and reasonable calculations.

Where the report will find fault is if details which should have been considered were overlooked, deliberately or otherwise. If the event performed as could reasonably be expected then it's a political decision and the electorate has the choice as to whether they support that decision. If it didn't in a way that was unexpected, that's hindsight, although it could be expected that any contract contained reasonable performance clauses. If it didn't perform for reasons which were available when making the decision and those reasons were either hidden or ignored, then it becomes a matter for the auditor.

[Robert Ryan]

If it didn't in a way that was unexpected, that's hindsight, although it could be expected that any contract contained reasonable performance clauses. If it didn't perform for reasons which were available when making the decision and those reasons were either hidden or ignored, then it becomes a matter for the auditor.

Basically a 25% less results than expected or 75% of the expected results

[Oldtony]

Fair summation of the audit requirement Wooley.
There is an additional area when auditing Government or Charitable NFP projects which requires that associations and relationships which could, or could be percieved to, influence decisions or actions should be declared.
My reading of the audit report on the negotiations doesn't make it clear if this happened in reference to third party involvement in negotiations.
Robert, if an IPO only achieved 75%of the targeted income in the issued prospectus I would imagine that the directors would have to answer questions from the shareholders, and in some situations, from the regulators.

[peckstar]

an article from the other side

[Casper]

Originally Posted by peckstar

an article from the other side

[ForumNick]

Originally Posted by peckstar

an article from the other side

A "confusing?" quote from that link"

"State Treasurer, Eric Roozendaal, said planning for this year’s Sydney Telstra 400 was now underway.
The Sydney Telstra 500 V8 Supercars race has reaffirmed that Sydney is the major event capital of Australia and the Homebush Motor Racing Authority is expecting a hugely successful event again in December 2010” .. he said.


Is it 500K..... or is this year's event being reduced to 400K



( PLUS: where is the "****" emoticon when you need it ? ? ? ? ? ? ? )

[peckstar]

Forum nick, i think you should read a lot into a typo, especially with Sucrogen Townsville 400 coming up in two weeks, just a typo

[ForumNick]

Given that writing is his 'profession' you'd think Brian might be better able to get the 'basics' right?

Plus:

1) Doesn't anyone proof read anything anymore?
2) Being in an on-line format, it should have been fixed before now!