Rotorua Review - - YOUR PAPER, YOUR PLACE -

Read­ing the Air­port Ac­counts for the last 2 years, I have come to the view that the $47 mil­lion as­set trans­fer from the Coun­cil top the Air­port com­pany was done at fair value (cur­rent arms length value) and not at what the Coun­cil spent on the in­fra­struc­ture. Ba­si­cally, they sold the stuff to the air­port com­pany at a profit.

Yay! Good fi­nan­cial man­age­ment and they also own all the eq­uity in the com­pany. Noth­ing to be sneezed at. As time marches on this means free money to the res­i­dents and ratepay­ers of Ro­torua.

So we have a sit­u­a­tion where the Coun­cil has now $28.6 mil­lion in­vested in the Air­port com­pany, the Air­port com­pany owes $16 mil­lion to the Coun­cil and the com­pany is worth $30 mil­lion.

Cash flow is good for the air­port com­pany and the de­pre­ci­a­tion al­lowances near $1.5 mil­lion look good to pay long term debt off to the coun­cil and to get the needed in­fra­struc­ture up­grades to meet earth­quake reg­u­la­tions, as well as pro­vide a ter­mi­nal that starts tourists hol­i­days off in the right man­ner.

Who knows, they may even tell their friends to come over and they may spend more in Ro­torua.

Just a side note; the snip­ing by a hand­ful of failed lo­cal politi­cians in the Con­ver­sa­tions sec­tion of your paper ever since they lost in the elec­tions shows a Rumple Stilt Skin men­tal­ity which to me says these politi­cians are not too well in­formed and per­haps not of the right tem­per­a­ment to run the city.

It is good they didn’t reach their po­lit­i­cal as­pi­ra­tions.

I hope we can get onto pos­i­tive is­sues now like the air­port up­grade.

War­ren Portsmouth

Air­port up­grade con­tin­ues to di­vide opin­ion.

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