2 August 2018
Media: The Mud
Topic: Mudtopia
Inquiry
The Mud sought comment from Council in regards to a press release from Rotorua District Residents & Ratepayers group about Mudtopia.
A Press Release we received contained a number of accusations. These have been dealt with to some extent but one of the most serious is as follows: "In my opinion, and in many people's view, these numbers are grossly excessive and the categories far too vague. There is public speculation about kickbacks."
The word "kickbacks" is pretty loaded and may be seen as being emotional. However, it may also simply mean "commissions". So, is it possible to say if a system of commissions or similar rewards was incorporated into the commercial arrangement pertaining to Mudtopia?
- Does the council have any comment on the allegations? Is council considering legal action?
- What due diligence did the Council do when it was engaging Event Engine Ltd?
- Has the council fully paid the company all monies owing regarding management of Mudtopia, including commissions?
- Is the council aware of the involvement of involvement of some of the people involved with that company in the Golden Oldies in Christchurch?
- Is the council considering legal action regarding management of the Mudtopia event?
- Separately, which companies were paid what for the "social media" component of the Mudtopia promotions?
Response
Council's decision to approve the event was based on feasibility work (which was funded by MBIE), a business case and MBIE's financial commitment for the event.
Event Engine Limited was engaged to manage it on behalf of Council, following a public tender process and reference checking.
Council's contract with Event Engine Limited did not include any commissions and the amount for festival directors covered the team who organised the festival (not just Messrs Brady and Rice) as well as event management, marketing, PR, music promotion and stage management, sponsorship, on-site operations and more over almost 18 months. Event Engine Ltd engaged various parties to deliver various aspects. Endeavour Live Ltd was engaged to deliver the social media component.
Following the inaugural event, Council made a decision to not fund any further events. There are many factors which impact on the success or otherwise of an event and in relation to Mudtopia, these have been reported to Council.
There are no outstanding matters, financial, legal or otherwise, relating to Mudtopia.
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Media: Rotorua Daily Post
Topic: Mudtopia
Inquiry
Following an official information request the reporter sought comment from council in response to the following questions:
- Highlighted in yellow are flights to Christchurch. Who are the advisory board members and why did one fly to Christchurch in November, February and April? There is also 1,574.20 on the travel of a Advisory Board rep. Can you provide more detail on that?
- Highlighted in Green: It says Shine was engaged to do the PR for the event, yet further down a total of $25,000 is allocated to Applause Communications for PR and Comms.
Can you please explain the difference between what each did, or explain what Applause did if you can't discuss Shine.
- I also note the spending on the Boryeong delegation. (highlighted in blue) if my calculations are correct that adds to $17,180.91. Can you please explain how this was a good use of ratepayer money. and what the ratepayer gets from this spending?
- And finally feel free to add anything further to the above questions if you feel it is pertinent.
Response
The advisory board was made up of seven people including one from Christchurch. She opted not to take any remuneration for her time but Council covered the cost of travel to and from Rotorua to attend some of the event board meetings. She did not require Council to cover the cost of travel for other board meetings she attended in Rotorua.
The $1,574.20 you refer to for another board member is for board fees and travel of an Auckland-based board member who attended four board meetings before withdrawing due to other commitments. Council covered the cost of travel to/from those meetings (which were in Rotorua).
Please note that the $1574.20 cost line you refer to is not just for travel but also for board fees.
Event Engine delivered Mudtopia on behalf of Council and engaged the services of various others to deliver different aspects of the event, as is normal practice for events. Shine PR was initially engaged for public relations and communications but withdrew in March 2017 and Event Engine replaced them with Applause Communications.
The cost to host a delegation from Boryeong came out of the event budget and was part of a reciprocal agreement with Council in exchange for intellectual property, advice and support and promotion of Mudtopia at the Boryeong Festival. 14 of the delegation of 16 paid for their own travel costs and accommodation in Rotorua was sponsored.
Advisory board
- Ann Hindson, events management expert (Christchurch)
- Gert Taljaard, tourism operator (Rotorua)
- James Fitzgerald, tourism operator (Rotorua)
- Paora Hurihanganui, iwi sports, events and health and wellbeing sector (Rotorua)
- Elizabeth Marvelly, entertainer, expertise and networks in entertainment industry (Auckland)
- Sarah Lewis, consultant with expertise in major events and sponsorship (Tauranga)
- RLC representatives: Chief Executive's Office Craig Tiriana and Chief Financial Officer Thomas Coll
