Friday, December 5, 2014

Open House

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Regards

Adolf

14 comments:

Jamie said...

Closed door Asset sales today...

How to re-build a city???

I know, lets sell all our assets to commie China...

Jamie said...

How are we going to spin this team???

Paranormal said...

Asset sales are a bloody good idea. EOS

Jamie said...

To the commies??? Don't know about that...

Paranormal said...

Doesn't matter a jot who they are sold to, just as long as the Peoples Socialist Council of Christchurch divest themselves of their assets. If the Chinese buy the assets (which i highly doubt) they're hardly going to take them to China are they?

Jamie said...

Shakes his head in disbelief...

Budgieboy said...

What's your suggestion Jamie

Jamie said...

How bout not selling out for a start 'budgieboi'

Psycho Milt said...

There's no reason why the ratepayers of Right Now should have to front up the entire cost of infrastructure that's going to be used by Chch residents for generations. Paying for that infrastructure via debt is a good way of spreading that cost across future users of the infrastructure, and the fact that the residents' collective representative owns a bunch of big-revenue-earning ventures should ensure that the debt doesn't come at too high a cost or would be unable to be repaid. The only reason they're divesting Chch of its assets is because the ideologues in the current government wish it.

JC said...

PM, I don't think Chch residents would thank you for that insight.

Chch has an earthquake debt of $1.3 billion, if thats borrowed at say 5% thats an annual cost of $65 million or an additional cost of $360 per home to service just the interest.

Of course this cost could be passed to its revenue generating assets like the airport, port or Orion but I suspect the directors of those public companies would sue the authorities for political malfeaseance and present an excellent case why public bodies should not own such assets. Part of it's already strong case for independence from political interference would be the 44% increase in the debt over the last few months and no guarantee of protection from further indebtedness.

JC

Jamie said...

Served...

Psycho Milt said...

The question of why "Christchurch" rather than "New Zealand" has an earthquake debt of $1.3 billion would be an interesting one all by itself, and is again a matter of the current government's ideology. As to funding the interest on debt, further questions would be why people are paying 5% interest at a time of 1% inflation, and why profits from the council's assets shouldn't go towards funding the rebuild. A city isn't a business.

Jamie said...

PM stooges keep stooging. And sell-outs keep selling out I guess

Paranormal said...

" A city isn't a business"

No it isn't but it should be run on a sound business basis.