As the Boomer King keeps trying to privatise our Airport the question of how to balance Auckland City Council’s books becomes more desperate.
Despite the unprecedented impact of two Covid years, the value of AIAL shares has increased by 352%, benefiting Auckland Council by more than $1.634 billion – so why are we selling our Airport again?
There are 13 golf courses operating on 535 hectares of council-owned land, covering an area 1.25 times larger than Auckland’s city centre. Airport Shares are worth $2.2billion, Golf courses are worth $2.9Billion.
Why is he selling our airport and not the bloody golf courses to make money to fill the budget hole?
Why not keep three 18 hole golf courses, sell five and make five 9 hole gold courses while developing affordable homes available only for owner occupiers and State Housing?
That way we keep recreational space, make money AND create desperately needed housing!
Why is it the Airport we have to privatise and not the bloody Golf courses?
Why?
Fuck Golf!
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Why aren’t we deporting foreign-born criminals by the planeload? *crickets chirping*
Unfortunately, the golf courses have 25 to 50 years leases held by trusts to occupy those spaces. I do agree with the idea of selling some of them off, but not likely to happen though.
The idea that any recreational facilities (or government assets in general) need to be sold off is bogus.
The ‘crisis’ only started after unaffordable tax cuts for the rich, and the decision to end slum clearance and mass planned development. There is no shortage of land, nor of income that could be taxed once more.
It is true that the national economy is far too weak and backward (thus affecting tax receipts). But again, this is due to deliberate policy decisions (globalist trade policy, anti-industrialism).
Like most conspiracy theories your story relies on a “logic” that only became apparent after the outcome.
Reality:
Most golf courses are and were developed in rural areas on low value land to create recreation value for city dwellers. Then the city boundaries grow beyond the boundaries of the golf course. Now the golf course is on high value urban land!
Except critics at the time (the ’80s) said this is exactly what would happen.
OK. There is that.
But practical economics dictates that one sells assets that are underperforming if you need to borrow money to live off.
They’re too frightened of what the rich folks will do. Like the ones at Remmers Golf Club. You know. The one’s getting their membership of $11,700 paid by Auckland ratepayers every year for the next 90 years or so of a 100-year deal. Why?
That’s $9m+ every year! Not one councillor has said anything about this. Why?
Remuera Golf Course is on the old Waiatarua Lake Bed and has been designated a Green Space, probably better off Auckland Council tidying up it’s act and start operating in the best interests of it’s Ratepayers.
Plenty of other sites and substandard Housing NZ properties to be redeveloped first b4 tearing up our Golf Courses and Green Spaces IMHO.
And one will probably find that much of the green spaces have low potential for high density development.
Utilising these public green spaces better to manage public services may well be the way to go. Previous generation planners and engineers not all stupid.
Martyn – Because Phil Goff signed off insane legal agreements to protect those Golf courses…Go Labour!
shhhhh…….
Reactionary Bratwurst – Nice
Because golf courses are middle-class adults’ playgrounds, plus the extra housing would upset homeowners.
Is that why ex Labour MP Goff did a deal with the golf courses management.
Why sports grounds? Why not Cornwall Park, the Domain etc (which I don’t support) ? At least the golf course are heavily utilised by all sorts of Aucklanders. And no not just well off people, all sorts of shapes and sizes ages.
We all know that sell a course and it will be once again developed with housing that is not affordable and likely be bought up in chunks by landlords/speculators
Developers would love getting their hands on that real estate. The only constraint will be what they will be allowed to do with the land. Running golf courses and parks will find no willing investors. Imagine getting a consent and cost to convert a golf course into a housing development.
Swopping recreational land that is suitable for higher density development for flood prone land is a sound strategy. One can only assume this planning is progressing well. One will likely find that most of the recreational land was designated as such for really good environmental engineering reasons.
Borrowing money to operate an asset for a long term is not a sound financial strategy. Especially where the value of the asset is Nationally strategic. Government should buy the 18% shares that Auckland City holds on behalf of the ratepayers so that Auckland can pay down debt and relieve rates pressure for Aucklanders.
Because getting a majority around the council table would be equally difficult as selling the Ak airport shares.
George Caitlin, the late & great American Comic genius has a YouTube video on this very subject of selling Golf courses & the self entitled pricks who play this stupid sport. Check it out, it’s enlightening?
Reality.
Golf courses are often located on low value urban land.
Where you find golf courses located on high value urban land you will find that these golf courses used to be located on low value land bordering cities and towns and that the boundaries of the cities have moved to include the golf courses.
What’s self entitled about playing sport?
Sports is one of the criteria in which we can judge the value of the Government. Does the government have to implement it’s policies by force or is it a vision we can all celebrate? People tend to regard there loss of rights as an incremental increase in wisdom. The answer isn’t bitterness.
Ask Martyn. He’s a sportsman.
Exactly. It’s an ill thought out racist attack on the rich middle aged white men he assumes play golf.
Get off your fat arse and out from behind the keyboard, go down to Chamberlain park and have a look at who plays golf. You will be shocked to see a majority or Pacific and Asian people. Go to many other Auckland clubs you’ll find a wide range of people.
We need green spaces.
We need to encourage exercise and recreation, it’s second only to removing sugar from our food chain to reducing diabetes in our Pacific and Maori populations.
We also need the water absorption, the carbon sequestration the habitat for birds to name just a few of the benefits of green spaces like golf courses and parks.
When you start lobbying to chop up and build on rugby, football and parks league fields with equal ill informed gusto; I’ll be prepared to listen
Mayor Brown’s a baby boomer. Boomers play golf. Boomers vote. Boomers play golf and vote Brown.
Boomers like AIA shares. Boomers like to buy AIA shares. Boomers buy AIA shares and vote Brown.
Boomers call it win-win.
Michael Wood.
I don’t think that selling Michael Wood would raise all that much money.
But I may be wrong. . .
You want to sell Michael Wood? I do too, right now. Stupid, stupid man.
Yes an exceptionally clever minister.
It seems some people believe that the term boomer applies to everyone aged 65 and over.
The NZ baby boomer cohort covers people born after the end of World War Two – i.e. from about 1946 up to the early 1970s. Boomers are aged between about 50 to 77. See the link below.
Clearly people in this cohort have differing values, beliefs, priorities and political ideologies.
Why are you making ridiculous generalisations, evidently without understanding what the term boomer means?
https://teara.govt.nz/en/photograph/28730/baby-boom-generation-about-1969 War Two
It seems some people believe that the term boomer applies to everyone aged 65 and over.
The NZ baby boomer cohort covers people born after the end of World War Two – i.e. from about 1946 up to the early 1970s. Boomers are aged between about 50 and 77. See the link below.
Clearly people in this cohort have differing values, beliefs, priorities and political ideologies.
Why are you making ridiculous generalisations, evidently without understanding what the term boomer means?
https://teara.govt.nz/en/photograph/28730/baby-boom-generation-about-1969 War Two
We heard you the first time.
Oh it’s nothing to do with age, nothing at all.
It’s simply a generalised value judgement label term of abuse.
Somewhat akin to ” leprechaun”.
1946 – 1964 is the Boomer period. The 70’s are included in Generation X. Youngest Boomers are now heading for 60.
Prunella. As explained in the link in my reply to Henry, in the NZ context the baby boomer cohort covers from 1946 to the early 1970s. NZ Boomers are aged from about 50 to 77.
Overseas boomer cohort dates may vary.
Vienne, I don’t think that’s correct. I’m 49 and my parents were born after the war. They are boomers and I’m Gen X since 1974.
What’s a word mean these days? More the connotation than the meaning, notably men and women of a certain age who have benefited from post war prosperity and economic growth, at least in our parts of the world, and are now held responsible by younger generations for most of the bad decisions and fuck ups made along the way, now clearly apparent, while they are living the life of Riley, although clearly not a level playing field and some have prospered more than others, got lucky, perhaps inherited wealth. got way with only a few poor choices, played smart and/ or dirty, and are more well-heeled than others and are therefore more accountable. It’s all their fault god dammed it! Perhaps those just born will look back in good time and think much the same of their older brothers and sisters.
I love the way you frame things. The value increase in the AIAL shares has NOT benefitted anyone. After all, share are worth jackshit until they are sold. Having said that, I agree they could look at things like golf courses, that eyesore called Mt Smart and other places.
Krautet Haus, doesn’t the capital value increase raises the councils debt ceiling whilst maintaining their credit rating?
To follow your logic the council shouldn’t own any assets, a scenario that has got NZ Inc into its current ‘serfdom’ status.
PK
The clue is your answer. Debt….
The only way to remove debt is to increase rates to pay the true cost of running the city, something I believe should be on the medium term planning agenda. But short term what will be sold next year to cover the debt. Selling the shares will mean overseas ownership, so we will be more of a serfdom. Sure currently AIA shares are not performing at peak, but good returns are forecast to return; if they are such a bad investment why does the market value them so highly?
Yes blogs like this do clearly show how too many NZers lack basic financial nous.
Lets make Auckland super rich using the dumbarse tribal politics method. Go borrow 10 billion dollars and buy Airport shares with the money. The fact the return is projected, if it even happens, to be 2.3% when the interest costs are 4.25% we’ll conveniently ignore in the name of political ideology, as fucking ridiculous and self defeating as the majority of that is.
So why are ths golf courses ghe first to go?
So why are the golf courses not the first to go?
For the same reason most things in NZ get fucked up, ideology.
Losing some Golf courses and the Airport would reduce the millions of dollars per week that goes to only interest payments.
So true PB!
The sale will only work if costs are reduced; unfortunately in NZ the only way management seem to know how to cut costs is arbitrary staff cuts, often ending in contracting out, furthering our race to the bottom.
Auckland was gifted the airport shares, so didn’t accrue any debt.
Golf courses are too valuable an open space to be built on, so don’t sell them.
Just make the users pay their way, that’s a $160,00,000 saving, cos that’s how much they are subsidized by the ratepayer.
For equality, we can issue vouchers based on need.
I’m guessing they need the money now?
But apart from all the other reasons stated, these large green areas act as giant sponges for rain. Lessons learnt from recent flooding. So turn those into intense housing and see what happens!
Why does Auckland as a town need to own the only viable international airport in the country? Cause the government don’t want to own strategic assets? Cause we like to have national strategic asset financed by rates and rate payers? How many of the Auckland ratepayers used that airport in the last year? Maybe we should charge a premium rate in Auckland to those that use the airport? Like call it a congestion charge to be paid for by the user only? I am sure the Minister of Auckland and the Minister of Central Auckland are physically able to take the train and a bike for their visits in Wellington if they find a congestion charge to expensive on their 6 figure annual wages.
Why the fuck does the Auckland Council – who is essentially out of cash – has a councilor that owns 3 million worth of Auckland Airport shares and until yesterday it seems this was not known to the council, the ratepayers or the mayor?
Why the fuck can the Minister of Transport, the Minister of Auckland, spouse of a Auckland Councilor own shares in Auckland Airport and refuse repeatedly to sell these – or otherwise divest of them – and only does it now?
But yeah, why don’t we build over the last large open air spaces that are generally available to everyone? Cause we truly are dipshits that hate the poor and unhoused, right?
Before the great Chinese Lung Rot Scare the council was getting about $60 million in annual dividends. That’s a lot of money.
And right now, as the airport share price recovers the stake is worth about $2.1 billion.
Hmm… that’s a return of 2.7%. Seriously? I can get better than that if I shoved all that in a bank deposit.
And what are we paying on our debt? Obviously they’ll be older debt at low interest rates but they’ll all rollover soon enough, which means we’re looking at interest rates on the debt well above 5%. And that debt is about $12 billion.
Okay, so from an input-output measurement it doesn’t look good. We’re not actually making money from this “investment”, we’re losing money. If we had no debt it would not be an issue, but we do and it is.
But I’m told it’s a “strategic asset”. What does that mean precisely? Obviously it’s a strategic asset to the airlines and all the little companies dependent on it, but I don’t think any of them own it. At 18% of the shares we’re a minority vote anyway so we don’t really control it at that level, let alone telling its management what to do re expansion etc. We’re not going to buy the rest of it for another $9.8 billion.
Are we hoping/expecting it to balloon in value in the next few years or decades? It has gone from $0.9 to $9.00 in 25 years – 1.1% annual growth. Not exactly Apple or Amazon now is it? And with Net Zero coming down the pike? I know that the order books of Boeing and Airbus are full and that airlines are expecting huge growth in the number of travelers over the next two decades (hence the filled order books), but is that really going to happen?
So in the face of all of this, what does “strategic asset” mean to he Council and we ratepayers?
Why aren’t we selling golf courses?
Because they wouldn’t get building consents. They’re either zoned as green space in the suburbs or on flood prone land.
sell to developers and you get more of the same us style mc mansions….now if you build state housing it might help, but you have to have a real evictions policy to placate the nimbys
Because a minority of wealthy Boomers have manipulated AC into maintaining the golf courses for their own subsidized leisure at vast expense to the city.
AC put out a draft Golf Course Management Plan for public consultation last year titled “Where all Aucklanders benefit from publicly owned golf land” in an mad attempt to keep the Boomers happy but also increase the public usage of what is effectively vast swathes of public land being managed exclusively for a very small number of people.
They proposed a plan that would “open up” Council’s Golf Courses to other public users, such as joggers, cycling, other sports and even families picnicking!
Sounds like a great idea until one factors in high velocity projectiles normally associated with golf!
The consultation process was probably one of the most badly managed proposals in local government history. Look it up, it’s quite laughable!
Titled as if it was a chapter from a Winnie the Pooh book, the document itself was very badly written, almost childish in its formatting and imagery, made grandiose claims of ecological benefits based on very littlle evidence, and the public consultation process was a sham.
Due to the public response being heavily dominated by the Golf lobby who rejected the idea of the public utilizing their exclusive real estate, Councillors at the time rejected the plan and asked for the whole process to be conducted again….later this year.
So given that ACs Golf Courses are already currently under review, there is NO reason why the management of these public assets could not have been included in the budget discussions.
The reality is Mayor “Incapability Brown” simply chose not too include the $2.6Billion worth of highly manicured landscape or the $160Million it costs to maintain that estate in his Austerity budget because he has decided class and generational warfare is a better option for him and his mates.
He’s publicly said he doesnt want to put extra rates burden on those who own property in Auckland, i.e Wealthy Boomers, despite the projected increases being less than inflation….so lets cut services to poor people instead.
He got publicly beaten on that one…
What’s left?…. raising debt? Its literally the foundation of the global neo liberal economic paradigm but thats not good enough for Wayne, cos Wayne knows best… about literally eveything!
But wealthy Boomers must have somewhere to spend their well earned, publicly subsidised retirement, so selling some off their publicly subsidised leisure lands is like selling the family silver. Definitely off the table that one!
How about as a compromise we sell the Citiy’s stake in the Airport? We dont really need too if the other 3 options were pursued….but Boomers like too buy shares, especially when the value and return is projected to increase significantly over the coming years.
Win/win…..for everyone that matters. Have to find someway to transfer the City’s wealth eh Wayne!
Legal leases Martyn.
It won’t make much difference in the long run. ACC will just borrow more – up to just below the point that the rating agencies cut the ACC credit rating.
I’m not a golfer but I know a few golfers and what you’re suggesting is sacrilege.
If we go down this track, how long before football fields are done away with and replaced with housing?
What I’m seeing to resolve the housing crisis is hidden in clear view.
In 2018 we had two hundred thousand vacant houses in NZ. What percentage of those are just investors house banking? What penalty is there for wealthy investors both domestic and offshore to house bank? Is in morally corrupt to deliberately keep properties vacant during unprecedented homelessness?
Does the same apply to investors who have land banked huge areas that are suitable for housing? Is that also morally corrupt at a time that destroying beautiful golf courses is considered a reasonable option to produce more housing?
How sensible is it to have a net gain of fifty thousand immigrants a year when we already have serious housing problems? Should we instead put more focus on training our young people including the unemployed rather than creating more housing issues and paying the unemployed from other countries? Last year we had farmers and fruit growers complaining their fruit and vegs were rotting on the ground because they didn’t have a workforce yet we have one hundred thousand people unemployed / out of work?
As TDB loves cooperates with monopolies it’ll be very pleased to know AIA is increasing it’s landing charges for Domestic from 6.75 to 15.45 over the next 4 years. Regional from 4.40 up to 10.70 and international from 23.40 up to 46.10. So some hefty rises for the passengers to pay for there.
They are trying to find avenues to pay for the 2.5 – 3 billion dollar project they have just started. They probably also need to start dividends again as they haven’t paid any for some years now.
AO/NZ’s economy is agrarian so [how] is Auckland again? ( Farmer money’s still being siphoned off then slid into Remuera so I guess that’s how. ) If one can make a bob out of selling a soon to be deserted airport into a grubby, logical fallacy money pit city who’s only growth will be in ghetto’s, I say go for it.
Besides, in another 20 or less years it’ll be Invercargill that’ll need the airport or perhaps a drone-pad for the quivering, nervy and likely U$A nouveau riche who will have bought The Republic of AO/NZ off Jonky@*Maori.Inc.Ltd.com who would then live in South Westland on what was once DOC land and National Parks. I’m sure Jonky’s bestie peter thiel has more info on that. You will remember peter thiel right? ( And larry page of google! ) He became an AO/NZ citizen within 12 days. Under special circumstances too, so yea, flash.
And if you think I’m blowing out brain fartery then ponder this:
#A I am a bit. Also # B Leonardo DaVinci, I think, wrote, “Everything’s connected to everything else.”
https://medium.com/@nikitavoloboev/everything-connects-to-everything-else-c6a2d96a809d
* @ Maori. I mean no disrespect but you’re being used as leverage to promote the idea of a republic for future AO/NZ and trust me, no good will come of that for you.
The early days of the crown displayed a grotesque arrogance toward Maori but there is the treaty and in these modern times the treaty is binding and as such @ Maori have more power than perhaps is realised by most.
If Maori, farmers and urban people united the hyper rich would be deeply, deeply concerned. Remember. 14 multi-billionaires. 3118 multi-millionaires with $50 mil plus each and four foreign owned banks back-doored into our economy by neo liberal traitors to steal $180.00 a second in net profits from and artificially inflated property market. Imagine how that money, YOUR MONEY, might be repurposed? Into health, housing, education, rail freight and passengers, etc etc.
AO/NZ’s economy is agrarian so [how] is Auckland again? ( Farmer money’s still being siphoned off then slid into Remuera so I guess that’s how. ) If one can make a bob out of selling a soon to be deserted airport into a grubby, logical fallacy money pit city who’s only growth will be in ghetto’s, I say go for it.
Besides, in another 20 or less years it’ll be Invercargill that’ll need the airport or perhaps a drone-pad for the quivering, nervy and likely U$A nouveau riche who will have bought The Republic of AO/NZ off Jonky@*Maori.Inc.Ltd.com who would then live in South Westland on what was once DOC land and National Parks. I’m sure Jonky’s bestie peter thiel has more info on that. You will remember peter thiel right? ( And larry page of google! ) He became an AO/NZ citizen within 12 days. Under special circumstances too, so yea, flash.
And if you think I’m blowing out brain fartery then ponder this:
#A I am a bit. Also # B Leonardo DaVinci, I think, wrote, “Everything’s connected to everything else.”
https://medium.com/@nikitavoloboev/everything-connects-to-everything-else-c6a2d96a809d
* @ Maori. I mean no disrespect but you’re being used as leverage to promote the idea of a republic for future AO/NZ and trust me, no good will come of that for you.
The early days of the crown displayed a grotesque arrogance toward Maori but there is the treaty and in these modern times the treaty is binding and as such @ Maori have more power than perhaps is realised by most.
If Maori, farmers and urban people united the hyper rich would be deeply, deeply concerned. Remember. 14 multi-billionaires. 3118 multi-millionaires with $50 mil plus each and four foreign owned banks back-doored into our economy by neo liberal traitors to steal $180.00 a second in net profits from an artificially inflated property market. Imagine how that money, YOUR MONEY, might be repurposed? Into health, housing, education, rail freight / passengers, etc etc.
If these times seem strange, then you’re right. They are And it’s not our fault. We have no political clout left at all. And we have our economy being stolen from us by rich people. How is that good and fair?
Well, it isn’t fair. And that’s why we must stop looking up at our abuser politicians for the crumbs the rich drop and start looking down on them while we make the bastards do what we demand of them.
Golf courses soak up flood waters. And with out them where would corporate event s take place and networking and how would baby boomers stay fit and how would we produce pro golfers.
Sell the golf courses and the bloody airport.
Yep I agree the golf courses should go before the airport.
Government seem to have no problem taking away parks, mental institutions and educational facilities for housing aka Unitec which seems to be strange when there is all the land for golf courses which is pretty elitist and takes up a lot of water and expenses.
No problem with 4 public golf courses in Auckland but I think there might be a lot more that could be sold before the shares in the 1 international airport in Auckland!
Folks
Google pics of outer Moscow suburbs. Huge grey blocks with 40 or 50 floors. Fucking depressing. Suicidal accommodation. A socialist dream.But Martyn will be salivating….a perfect vision for Aoteroa!
Some idiot said it seems like Brown had the numbers, who was that?
Wayne Brown conceded ground on almost all his original planks for Auckland Council’s budget, and ground out a kind of political draw that left no one particularly happy
I see Mayor Brown got it over the line,he got the numbers, clever tactics.
Boomer Brown did not get the numbers he wanted, fact. He conceded. He is a gutless prick with dementia and Auckland are worse off for having him. Couldn’t get it over the line and chickened out, But call it clever tactics, it falls into his delusional thought content.
The planet is burning, so we are told , and these golf courses must be a valuable carbon sink helping to save the planet from so called climate change…we need more golf courses, not less…
Until you add in the watering, chemical fertiliser/weed control and monoculture of turf. A park/forest is better for carbon and more community and flora and fauna supportive.
It is high time Faux Mayor, Wayne Brown should be sold.
No one will purchase something that is broken beyond repair, so you can rule dementia Brown out.
Best Mayor in Auckland’s history is our Mayor Brown.
https://www.stuff.co.nz/auckland/132275346/robo-staff-juggling-and-comedy-hat-all-part-of-auckland-council-budget-talks
The immature Auckland Mayor in history.
Singapore Turf Club, the only one on the island is closing, the land will be made available for housing.
They do things differently up there, the govt calls all the shots!
They reached a deal to sell off a portion of the shares, hold on to 10%.
But the funniest thing was Cnr D Newman trying to be clever by quoting Ronald Reagan saying, something like “…having to live within your means.”
During Reagans reign of terror he raised the US Debt Limit 18 times!!
Time for him to retire or something I recks.
So in summary:
Wayne Brown first mayor in living memory to even talk about reigning in costs.
First mayor in living memory to get some sort of agreement to reign in those costs.
First mayor in living memory to pass a budget that includes cost saving measures.
Not bad. Neither Phil Phucking Goof nor Len Bonkedher Brown achieved anything near as much. They just both fucked Auckland good and proper.
So maybe, just maybe, you lefties should shut the fuck up just for once about Wayne Brown.
Yes Mayor Brown best Auckland Mayor in history.
Well the latest is Councillors have agreed to a partial sell off 8% leaving 10% left. So Auckland Council originally owned 51% & thats been whittled down to 10%! Selling Income earning assets in a one off sale is your typical Neoliberal firesale scam to transfer Public assets to Private investors & once it’s sold, that Income stream is gone for good for the Council! The new Investors who bought the shares are laughing all the way to the Bank, already the Airport is raising fees which will increase airfares & passport departure fees! Good one Boomer Mayor Brown you fuckwit!
And then a councillor from Manakau cried boohoohoo…tears of grief boohoohoo the shares the shares boohoohoo. When she was asked how she could vote for a big rates increase her answer was sometiing like ” my constituents told me to go for a big rates increase and not sell the shares”. What utter horseshit! Her constituents are struggling to pay their bills! They’re gonna hate her pretty soon.
Go Mayor Brown you beauty.
Antforce62 you are clearly out of your depth,finance at its most basic level is obviously not your forte.
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