Arguing about an extra bill of 14 million: – No costs have been approved
– I actually think the agreement is fairly clear.
That’s what Finance Councillor Kjetil Reinskou (H) in Trondheim Municipality says.
Last week, the shock message came from the World Ski Championships: what was planned to be a profit of around 20 million kroner had in a short time turned into a “significant deficit” of many millions.
FINANCE COUNCIL: Kjetil Reinskou in Trondheim Municipality.
Just after 9:30 a.m. on Tuesday, the owners of the World Ski Championships received a review of the state of affairs – without receiving any exact figures on how much the deficit is today.
Present were representatives from the ski association, the ski district and the political leadership of Trondheim municipality, including Finance Councillor Kjetil Reinskou.
Following the meeting, Reinskou said that he had “never experienced anything like it in my entire professional career” when describing the financial management of the World Cup.
At the same time, NRK can now reveal that the municipality and the World Ski Championships are having backroom discussions about who will foot an additional bill of 14 million kroner.
I think they were never notified
The bill is related to the temporary solutions that were set up in Granåsen in connection with the championship, such as temporary stands, big screens, grease booths, audience tents and much more.
– There are around 14 million kroner that will be distributed between the two parties, which is the subject of the disagreement today, says Reinskou.
MASSIVE: The grandstand, at the bottom of the picture, is one of several temporary solutions that were set up for the championship.
According to the financial advisor, there is no disagreement about what type of costs should be paid by whom, but the municipality believes that there have been cost increases that were not cleared.
– A budget was agreed upon in December for what this would cost and it was agreed that nothing would be ordered beyond the cost limit that had been set. Unless we, who are going to pay, approve it and we receive a change notice. They have never come, he claims.
– So it’s about costs coming in after December?
– So it’s about costs coming in after December?
– It’s actually cost increases. Then you can discuss whether it’s quality increases or other things, but it was a well-considered budget in December, he says, and continues:
– It was determined that if there was a change in costs, it should be announced and nothing should be ordered beyond the budget that has been set, without the paying party approving it. Here, no costs have been approved subsequent to that agreement, claims Reinskou.
– In percentage terms, 14 million is quite a lot. We are talking about a cost increase here from 86 to 100 million. That is 16–17 percent, just since a thorough review in December, he claims.
Skinstad confirms discussions
Skinstad confirms discussions
When asked how they can disagree about 14 million kroner when it has been three or four months since the World Cup, the financial advisor answers:
– I think we almost have to put it on what has been the challenge in the World Cup company: They have fallen behind. From Trondheim municipality, this agreement appears to be reasonably clear. So we’ll see where the negotiations end.
Reinskou says that his starting point is that the 14 million will mainly be paid for by the World Ski Championships.
– And the Ski World Championships think you should take it?
– And the Ski World Cup thinks you should take it?
– I haven’t been in direct negotiations myself, but I only know that there is a disagreement about some of the distribution here. So I actually think the agreement is reasonably clear on that, Reinskou replies.
World Cup manager Åge Skinstad confirms the ongoing discussions with Trondheim Municipality.
– The municipality is clear that you are responsible for these bills. What do you say?
– The municipality is clear that you are responsible for these bills. What do you say?
– We have a “hosting contract” with a clear division of responsibilities, he tells NRK.
hosting contract
WM TOPS: WM CEO Åge Skinstad and Chairman Åsne Havnelid in discussions at the owners’ meeting in Trondheim.
The cooperation agreement Skinstad is talking about contains a clear overview of what types of costs will be covered by the municipality and what will be covered by the organizer.
Reinskou believes that it is regulated by agreements made during the project that the ski World Cup company will pay the additional bill.
DISTRIBUTION: This was the starting point for the distribution of costs associated with the temporary solutions.
– Who do you think should pay these 14 million, Skinstad?
– Who do you think should pay these 14 million, Skinstad?
– Kjetil (Reinskou) describes that there are negotiations and the last meeting so far was Monday. No final agreement has been reached on how the final bill will be distributed, but the hosting contract is ready, says Skinstad.
– Both you and the municipality believe the agreement and contract are clear. Yet you are arguing about the 14 million?
– Both you and the municipality believe the agreement and contract are clear. Yet you are arguing about the 14 million?
– I don’t understand that we are arguing. The messages from Monday’s meeting to me are that there were good discussions.
NRK has asked VM manager Skinstad whether Trondheim Municipality was informed of cost increases after the meeting in December, and why, based on Reinskou’s figures, there was such a significant cost increase afterwards.
– The final distribution of costs has not been clarified. We are referring to the distribution according to Hosting Congract. We have no comment beyond this, Skinstad writes in a message.