TCVL needed 'a letter of comfort” from TCC to then obtain sign off from Audit NZ for the year. This results directly from accumulating annual losses that have occurred to date since purchase in October-2007. This 'financial carnage” is miles away from the TCC budget of the time showing a mega $25,000 surplus for a year to pay $2 million in debt repayments. Many predicted this result from the start but sadly only now do Councillors see!
TCVL needs a $5 million 'Bail out”, with these losses they still want to spend more on expansions, the whole business concept being applied lacks any commercial sense to be able to succeed, example the interest bill annually exceeds the income.
The Mayor said 'Baypark will not cost ratepayers, the debt will be paid from cash surpluses…”, to date TCVL/Baypark has only created big losses annually. Now it is demanded that ratepayers now are being asked to pay for this folly and borrow $5m more. TCC's own budget for TCVL was a small surplus (never happened) $25,000 for 2012, there is $2 million a year in debt due, it is a bit short
TCAL is in a worse financial position than TCVL.
Director's of a company 'Trading whilst in solvent” are personally liable (Statute) for the losses.
Ian Stevenson, Tauranga.
9 comments
$5 MILLION BAIL OUT
Posted on 23-12-2011 18:15 | By SCARLET PIMPINEL
So that means that TCVL are making a mistake, they are asking TCC for money when they should be asking the directors'.
COMPANIES ACT
Posted on 26-12-2011 02:33 | By ANNA KISSED
Should a director continue to trade as a Company, there are losses and the Company is "insolvent" (which means it is unable to pay its bills as they fall due) then teh directors' can be held personally liable for allowing that situation to continue. It is a case of fix it ASAP or shut it down NOW! Really it is a case of self preservation.
annual losses
Posted on 26-12-2011 13:58 | By algail
One really needs to come to grips with the fact that if outgoings exceed income then you are on immoral and dishonest ground and resignation is your only path. I understand in France company directors who continue to trade in the same circumstances face a possible nine year imprisonment. Sadly I don't think councillors come under the same rules as do company directors. Surely the Govt wills step in one day and do something about the current councils financial naivety. We are seeing a city here being destroyed much as Christchurch has been but in a more subtle way. Alastair Bethlehem
ALGAIL
Posted on 26-12-2011 15:39 | By MASSA KISSED
I think that the rules in China would be better, if they dont commit the "kamakaze" thing then they are taken out into a paddock and set free in every sense of the word!
SELF PRESERVATION!
Posted on 27-12-2011 11:18 | By Roadkill
Would mean that anyone with half a brain would resign, but that does not let you out completely. I see a few have already abandoned the TCAL ship at least 3 of 5 have anyway. Like rats sensing the end is close looking for dry ground ... or were they the cause of the problem in the first place? Will we ever know?
Sounds Shonky
Posted on 28-12-2011 07:27 | By Scambuster
Council simply can't or don't want to control the TCC CCOs(COUNCIL CRAZED OUTFITS) because it doesn't suit the powers that be to do so.Take it from me the actual figures are one hell of a lot worse than shown here.
annual losses
Posted on 30-12-2011 14:17 | By algail
Kamikaze and Hari Kari ( harkari ) are Japanese honorable methods of ending one's life. In the case of kamaze one is defending ones master or country and Hari Kari an honorable way out after a dishonorable action with the assistance of a close friend or even an enemy. In China they have a similar honorable way out to Hari kari , Onyomi since honor is involved here they couldn't use that way out either. So there really is only one choice for the TCC which is hari kari because it would be their way out in recognition of the damage they have done to Tauranga it is closer to the actions and record of the TCC. Another choice and the obvious one is resignation but that would be honorable wouldn't it. Alastair Bethlehem
HARI KARI
Posted on 31-12-2011 14:09 | By MASSA KISSED
I agree on that, there is a endless and non stop trail of messes here that are self indulging but scrafice the masses. These deeds are VERY much in the dishonourable category. I am sure a few eneries would que up to assist them to do the right thing. In fact you could sell tickets to the show, would help the debt mountain a little maybe.
No Bail out, just giving back ...
Posted on 07-01-2012 00:05 | By Murray.Guy
TCC set up TCVL on a flawed business case and 12 plus million of debt. This diverts attention and blame from those who actually incurred the debt. TCVL are asking TCC to take back a portion ($5m) of the debt they were given, to better enable them to develop cash flows and a valid business case to manage the balance. Effectively, if TCVL can pull off their plans, secure positive cash flow activities, it means our community has secured a stadium and assets for $5m.
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