CASH FLOW IS GOOD
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.
Airport upgrade continues to divide opinion.