Nz Politix

[davereid]

Sorry, but you don't hear comments like that from the Government or the likes of the Business Round Table.

Bill English was citing the Auckland Airport business when justifying his decision to relax the rules and claiming that such investments would create jobs In NZ. I honestly doubt that, more likley to have the opposite effect.

""Let's get practical - we need the money because we need the jobs. " - Bill English

How does selling Auckland Airport create jobs in NZ?

Now I admit I've selectively quoted the man here but I don't believe I've misrepresented what he was saying.

You havent misrepresented him, its that the jobs may not be created at the airport.

An investor might build an extra runway, increase traffic, and make extra profit.

Or he might just defer maintainance to make a quick buck, like every investor in rail did.

But, the $400,000,000 he invests is best looked after by making the airport better, not worse.

Only an investor sure he can find a mug to flog a run-down airport to at top dollar, would run his airport or his rail network down.

The cure is simple. Keep the government out of it, so there is no mug to sell to.

So the $400,000,000 invested in the airport, is on the balance of probabilities likely to increase the size, sales and revenues of the airport, or it was a crappy investment, and a better investor will buy it at firesale price.

Even if that doesnt happen, $400,000,000 of money currently tied up in the airport by other investors is now freed up. If they are good investors, they will be eyeing up other places to make a dollar, and the money will be used to create other jobs and services.

It doesn't really matter how you look at it, if a company invests in NZ, the money is really here, and it really increases the amount of money available in our economy.

It only craps out when government falls for the "essential service" scam.

[Clockwork]

Or they can sit there and milk it as a cash cow..... just like Wisconsin Rail, Fay Richwhite et al. Its not like Auckland has too many other options for airports.

Now if that Canadian pension fund really thinks there is money to be made in investing in airports in NZ maybe they could build us a new one somewhere, that would at least directly create jobs. But of course then they wouldn't be buying into the monopoly that looks so attractive to them at the moment so that's not likely to happen.

It just seems to me that the only foreign investment we are ever offered is used to buy up existing assests and services that we are already providing ourselves and never anything that is likely to expand our own economy.

[Winston001]

Now if that Canadian pension fund really thinks there is money to be made in investing in airports in NZ maybe they could build us a new one somewhere, that would at least directly create jobs. But of course then they wouldn't be buying into the monopoly that looks so attractive to them at the moment so that's not likely to happen.

Airports are considered conservative, unexciting, safe investments - that's why it was attractive to the pension fund. Plus as I recall, this fund has experience with running other airports and that kind of knowledge is valuable.

On top of that, they were willing to pay approx $3.50/share for 40% - not control. A masive amount of money would have gone into Kiwis pockets to be invested elsewhere. Today the shares trade at $1.60 so sellers would have been laughing if it had gone ahead.

[Winston001]

Just to show this investing cuts both ways, Infratil a New Zealand public company owns Glasgow Prestwick, Kent International and Lübeck airports plus Whenuapai airport.

[Clockwork]

OK so infratil own a couple of bit player airports in a much larger economies that can, due to a healty manufactuiring base easily afford to let others dabble in such economics.

I don't think the scales of repective economies are in anyway similar and Auckland airport is pretty much the only gateway to our Nation! I simply can't see how we as a nation can benefit from this sort of investment.

I understand that the shareholders of the Auckland Airport have missed out and that is regrettable but if we went back further into the history of ownership I doubt it was their ownership that build the thing in the first place. I expect the current owners bought the shares simply for the prospect of capital gain, to that end the shares probably should never have been sold to them in the first place. This is what happens when Governments sell public assets into private ownership.

Lets not let Auckland Airport become the focus of this discussion. My point was to illustrate that foreign investment is not always benifical to our small economy and I believe that we would be prudent to pick and choose our offers wisely

[Brian d marge]

oh fu&%ky doos

doesnt really matter how you slice the pie

http://www.stuff.co.nz/business/indu...ficit-balloons

I know in my house if i run like this ,,,, it will end in tears

Stephen

[marty]

I am alright , I do F, all work ( five hours a day) , have a few motorbikes in a garage , race 2 of them , putting 2 kids through school , a big screen Tv and the latest Iphone ...and I drink Way too much ,,,

lifes sweet

The grass is greener on the other side .... today got up at 10.30 kb for a while , then the accounts and draw untill 4pm then i hae a stack of DVDs to watch

Sounds good !

but we human beings ,,, are a perverse lot I wonder if it is possible to live in NZ , but without being caught up in the rat trap,,,,

I mean , utilities , gasoline , food and mortgage ... if you don't use it you shouldn't have to pay for it ..... I have thought out an energy zero house , it actually returns electricity to the grid , gasoline ( easy ) and a large chunk of the food side of it I have covered and waste water ...

What it would mean is I wouldnt have to stress too much about earning money , I could work to live . ie do the stuff I want to do,

it wouldnt matter if JK stuffed up the economy ( in fact it would be to my advantage !)

its a thought that just wont go away ......

in the mean time .... carry on up the Khyber !


Stephen

wtf do you care? according to your profile you are not even in NZ. how are you contributing to our economy?

[Brian d marge]

wtf do you care? according to your profile you are not even in NZ. how are you contributing to our economy?

1 All my parts are made by NZ companies
2 I chose NZ companies first before choosing overseas
3 My banking is kiwi bank ...( I send quite a bit of money back to NZ each month)
4. I still actively campaign about stuff that is important ,,I have a pen , paper and internet ,,, try it it works.
4. I may be out of NZ , doesn't stop me caring about the place , because I may want to live there soon and I don't want to live in a pile of Dog doo caused by people who;

WTF do I care

That attitude has made NZ the place it is today ... well done


Stephen