Payment delays may affect airport

The Ministry of Transport has delayed paying Whakatane Airport for operating losses and approved capital works projects. Image: Google Maps.

A delay in Ministry of Transport payments for Whakatane Airport operating losses and approved capital works projects, together with a potential lack of funding for future projects, may impact on airport maintenance and upgrading plans.

The Ministry is a 50:50 joint venture partner in Whakatane Airport, one of five regional airports it co-owns around the country.

As the co-owner, the Ministry is liable for half of the airport's operating losses and had agreed to pay the outstanding costs of $185,000 for the 2015-2018 years. The MOT's share of outstanding capital works costs of $235,000 was also invoiced earlier this year, as requested, but remains unpaid.

A report received at last week's Whakatane District Council meeting indicated that the Ministry's annual budget of $500,000 for national joint venture airport costs is already fully committed for the current year and pre-committed for 2018/19.

A cabinet paper seeking additional funding is to be submitted to the government, but until approved, the Ministry cannot guarantee that it will be able to meet its share of the historic, approved costs, or essential future maintenance and upgrading projects.

Mayor Tony Bonne says a subsequent meeting with the MOT chief executive was very positive and both parties have committed to a pro-active partnership to run the airport.

'The Ministry is aware that the delay in payments and approval for essential projects, such as additional runway edge lighting costs and the extension of the runway end safety areas (RESAs) is having an impact on the airport operation,” he says.

'The RESA work is essential so that Air Chathams can use its larger SAAB 340 aircraft to increase seating capacity on peak services. That development will also ensure our transport infrastructure keeps pace with our economic growth needs, as well as delivering a much-improved customer experience.

'We have submitted a business case on the RESA project for MOT approval and have emphasised how important this is for the Eastern Bay of Plenty region.”

The council adopted recommendations that staff continue to pursue the overdue payments for operating losses and approved capital works and submit a request for additional funding to meet increased costs relating to the runway edge lighting upgrade, to comply with Civil Aviation Authority requirements.

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1 comment

To all my creditors....

Posted on 15-06-2018 08:51 | By waiknot

I’m sorry but all my funding is committed for the foreseeable future. Tough


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