Auckland Mayoralty Election 2022

[Blue Skies]

B S ( you are really B S !! ) W B wants to sell a mature transport investment to pay for another seed capital transport investment, CRL what is wrong with that ?

Blimmy, surprised I have to explain that to someone on ST. Financial literacy dear boy!

The Council has a number of assets which it could sell to reduce debt.
Only a fool sells the assets which will produce substantial future income (Auckland Airport projected $400 million plus in dividends over next 10 years) , when there are other options, i.e. assets of equal value which produce no income & not projected to produce any income in future (golf courses ).



Imagine you had 2 commercial investment properties of similar value, one producing income & the other no income & you had to sell one to reduce debt.
You'd sell the one producing income would you !?

[Balance]

Not much more than Nelson

Possible 7.2 percent rates rise for Nelson

RNZ
https://www.rnz.co.nz › news › ldr › possible-7-point-...
21/03/2023 — A 7.2 percent rates hike is on the cards, says Nelson City Council. The increase is one of five significant changes to council's Long-Term Plan ...

Try the Wellington Tory Whanau Green Party/Labour Party Coalition rate increase of 12.3%.

[Balance]

Apart from the strategic value to Auckland, on a purely financial basis, why would you sell an asset (Auckland Airport) which is projected to return $40 million per year in dividends, & has produced substantial capital gains, $140 million just while these discussions are taking place, providing added financial security to the Council,
when you could sell the Golf Courses (of similar value to Airport shares ) which on borrowed money are costing $100 million per year in interest & produce zero return to the Council? ( did someone say the Omaha golf course pays the Council $5.00 per year ! )

AIA has given ACC ZERO capital gains in the last 4 years. Yes, ZERO.

And the ACC (under Phil Goff, ex Clueless Labour Party leader) did not participate in the $1.2 billion capital raising in 2020 so Aucklanders missed out on $175m of gains.

BS = Blue Skies = Labour Party

[Logen Ninefingers]

Blimmy, surprised I have to explain that to someone on ST. Financial literacy dear boy!

The Council has a number of assets which it could sell to reduce debt.
Only a fool sells the assets which will produce substantial future income (Auckland Airport projected $400 million plus in dividends over next 10 years) , when there are other options, i.e. assets of equal value which produce no income & not projected to produce any income in future (golf courses ).



Imagine you had 2 commercial investment properties of similar value, one producing income & the other no income & you had to sell one to reduce debt.
You'd sell the one producing income would you !?

Auckland Airport projected $400 million plus in dividends over next 10 years

If anyone is financially illiterate it is you, because you continue to ignore that fact that the airport shareholding could be used to retire debt which is costing $100 million in interest per year. Whichever way you state your numbers on dividends you are not going to be able to make up the $60 million per year cost of holding on to these shares.

As to the golf courses, this was covered in the meeting this afternoon:

'Councillor Richard Hills asked about whether the council was able to sell golf courses to raise funds to meet the budget shortfall.
“The information I’ve had is that it's a very long process, so we couldn’t sell now, if we wanted to,” Hills said.
Staff confirmed that eight of the golf courses owned by council had been leased until 2028.
The local boards would also have a say on any sale, and ministerial sign off may be required.'

It is simply incorrect to make out the golf courses are highly liquid assets that could be sold off immediately.

[Logen Ninefingers]

If you want an insight into the absolute dunder-headed idiocy of many of those who sit on the council, consider the below paragraph:

'Several councillors have told Stuff they are concerned that if the shares are sold, the proceeds will disappear into paying off debt with nothing left to show for the asset.'

Paying off debt - debt that is incurring significant interest costs - is considered to be a negative action by many of these fools.

[Balance]

If you want an insight into the absolute dunder-headed idiocy of many of those who sit on the council, consider the below paragraph:

'Several councillors have told Stuff they are concerned that if the shares are sold, the proceeds will disappear into paying off debt with nothing left to show for the asset.'

Paying off debt - debt that is incurring significant interest costs - is considered to be a negative action by many of these fools.

Assets belong to them, debt incurred in buying the assets belong to others.

That’s Labour Party Socialism in action.

[fungus pudding]

If you want an insight into the absolute dunder-headed idiocy of many of those who sit on the council, consider the below paragraph:

'Several councillors have told Stuff they are concerned that if the shares are sold, the proceeds will disappear into paying off debt with nothing left to show for the asset.'

An unencumbered asset is hardly 'nothing to show'.

[Logen Ninefingers]

No matter how the Lefty's spin it, they are not going to be able to displace the opportunity cost that exists while these shares are not disposed of with the money being used to retire a huge wack of debt. $100 million a year in interest costs is not to be sneezed at. What do they not understand about this?!

[Logen Ninefingers]

Sickening to see the grasping Waikato-Tainui outfit trying to get their mitts on free Auckland airport shares, which they want the government to buy off Auckland council and hand over to them. It’s something to do with the airport being a ‘historic gateway’. Shameful behaviour, being both ‘cultural appropriation’ & an obvious cash grab. I’m not sure where this is all heading, as Māori demands simply intensify and become more venal with every new success they have, with their Labour allies frequently capitulating in the face of the ongoing assault on our democracy & the nations cheque book.

[blackcap]

Sickening to see the grasping Waikato-Tainui outfit trying to get their mitts on free Auckland airport shares, which they want the government to buy off Auckland council and hand over to them. It’s something to do with the airport being a ‘historic gateway’. Shameful behaviour, being both ‘cultural appropriation’ & an obvious cash grab. I’m not sure where this is all heading, as Māori demands simply intensify and become more venal with every new success they have, with their Labour allies frequently capitulating in the face of the ongoing assault on our democracy & the nations cheque book.

How can it be a "historical gateway" when Maori did not have planes? Or even the wheel? Just beggars belief.