28 Jun 2011

Dunedin stadium already financial liability - councillor

10:17 am on 28 June 2011

An expensive new stadium is increasing pressure on Dunedin's ratepayers as the council tries to get control of its mounting debt.

The Dunedin City Council passed overall rates rises of 7.7% on Monday.

The much vaunted multi-purpose stadium being built to replace Carisbrook for the Rugby World Cup is almost complete at more than $200 million.

More than half is being borne by the council. Councillor Jinty McTavish says the stadium is already causing financial problems that will hinder the South Island city's future prosperity and health.

Ms McTavish is warning Dunedin could face urgent asset sales if its total debt is not brought under control.

Mayor Dave Cull says the council cannot change the big projects it has inherited, but next year must cut its operating costs and reduce debt.