A project to extend Hamilton Airport runway will receive a $6.5 million loan from the Regional Infrastructure Fund, boosting resilience for Waikato and the national aviation network, Regional Development Minister Shane Jones says.
“Extending the runway will increase Hamilton Airport’s capacity to support a broader range of aircraft. Its location and proximity to major highways and link roads also make it a key hub for moving people and freight domestically and internationally,” Mr Jones says.
Apart from the fact that it is highly likely they will get no increased usage from a longer runway (which is already longer than Wellington, Palmerston North, Queenstown and Dunedin), why do taxpayers need to loan the money?
Why doesn’t the airport just get a commercial loan? Or get more equity from their shareholding Councils? The airport company has assets of $328 million and equity of $267 million. Last year they made a profit of $30 million yet muggins taxpayers is giving them a loan.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
3 comments:
David Farrier is deliberately ignoring the very purpose of the regional development fund. The money is to help develop the region. As we are seeing with energy, New Zealanders need to take back control of critical infrastructure. Fuel, rail, airports - we have to take it back. This money is a pittance for securing our future.
Future of WHAT is being secured? What is the relevance of energy when opining about a runway?
If the airport company can afford to invest their own capital in extending their runway (and it looks likely they can) then taxpayer funds earmarked for regional development would likely be better spent on a different project - i.e. not on corporate welfare.
Post a Comment
Thank you for joining the discussion. Breaking Views welcomes respectful contributions that enrich the debate. Please ensure your comments are not defamatory, derogatory or disruptive. We appreciate your cooperation.