Councillor Lotu Fili proposes alternative to Brown’s share sale to balance Auckland Council’s Budget, including borrowing $60 million more to offset cyclone hits in proper use of rainy day funds
Maurice Williamson is a goblin. I don't know why the media keep giving him so much time to mansplain debt to us... Unfortunately, Fili also made a bit of a bungle with her flustered "any debt is bad" and "loc-govt debt is like credit card debt" on RNZ this morning - we really need to start teaching 'economics for actual human reality' in primary schools in this country!
1. I would prefer you dont sell the airport, I would prefer the Govt be approached to pay off the debt in its entirety.
The problem is not so much the debt but the cost of servicing the debt however debt comes with a servicing cost and the servicing cost is where the problem lies.
Therefore to solve the debt cost the loan on the shares needs to be paid off by the government via the RBNZ.
The current situation is that the council is paying out 100 million a year on debt costs whilst the income from shares is only 50 million therefore the cost of owning the shares is costing the council 50 million per year, that means that the council shares are not an investment but a huge liability.
Summary
I would suggest that it's a great idea for the govt to pay off the debt associated with the auckland airport shares.
The outcome
Is that it will give Auckland council positive cash flow of approximately 100 million per year and still own what is a very valuable asset going into the future.
The disadvantage of selling the shares is that it's a one hit in debt reduction but the council loses the ongoing cash flow to council.
Final outcome and benefits to auckland council
Govt to pay off the debt, the council retains the airport shares, the benefit to auckland council is 100 million of income and increasing over the years to come.
I would also go as far to suggest that the govt pay off all council debt to relieve the council and release the council and ratepayers from DEBT SLAVERY.
Once this strategy is completed i would suggest looking at the costs of operating council services to make council and its agents more productive.
Once this stage is completed I would increase rates over 5/10 years to balance the budget.
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What was Woods thinking?
I was thinking the same. This close to the election, Labour doesn’t need these distractions.
Maurice Williamson is a goblin. I don't know why the media keep giving him so much time to mansplain debt to us... Unfortunately, Fili also made a bit of a bungle with her flustered "any debt is bad" and "loc-govt debt is like credit card debt" on RNZ this morning - we really need to start teaching 'economics for actual human reality' in primary schools in this country!
As a goblin I very much object to that comparison!
Boys, boys, let's not get personal. It's what they do, not who they are. Even for goblins.
Have a nice break guys!!
DEAR Wayne Mayor of Auckland
1. I would prefer you dont sell the airport, I would prefer the Govt be approached to pay off the debt in its entirety.
The problem is not so much the debt but the cost of servicing the debt however debt comes with a servicing cost and the servicing cost is where the problem lies.
Therefore to solve the debt cost the loan on the shares needs to be paid off by the government via the RBNZ.
The current situation is that the council is paying out 100 million a year on debt costs whilst the income from shares is only 50 million therefore the cost of owning the shares is costing the council 50 million per year, that means that the council shares are not an investment but a huge liability.
Summary
I would suggest that it's a great idea for the govt to pay off the debt associated with the auckland airport shares.
The outcome
Is that it will give Auckland council positive cash flow of approximately 100 million per year and still own what is a very valuable asset going into the future.
The disadvantage of selling the shares is that it's a one hit in debt reduction but the council loses the ongoing cash flow to council.
Final outcome and benefits to auckland council
Govt to pay off the debt, the council retains the airport shares, the benefit to auckland council is 100 million of income and increasing over the years to come.
I would also go as far to suggest that the govt pay off all council debt to relieve the council and release the council and ratepayers from DEBT SLAVERY.
Once this strategy is completed i would suggest looking at the costs of operating council services to make council and its agents more productive.
Once this stage is completed I would increase rates over 5/10 years to balance the budget.
Kind Regards
Gerald Mullaney
Mobile NZ 0274 888 271
International +64 274 888 271
Email geraldmullaney@gmail.com
Attention:
The information contained in this message and or attachments is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this in error, please contact the sender and delete the material from any system and destroy any copies.
Please note that the views or opinions expressed in this message may be those of the individual and not necessarily those of The Ark.
If you do not wish to receive further commercial electronic messages from The Ark, please opt out by forwarding a copy of this message to geraldmullaney@gmail.com