Standing by the point over airport ‘subsidy’

Airport versus gallery.
My original statement that the airport is in effect one of the most heavily subsidised activities of council still stands despite Cr Faulkner introducing and airport versus gallery matter into the story. This was never about the airport and the gallery; both are proper activities of council as are libraries, swimming pools, parks and reserves etc.
All are important activities of a vibrant and growing city. The point I was making is that the airport, rightly or wrongly is not user pays but is ratepayer funded by virtue of the rentals it receives from the industrial land leases nearby. In the 2011/12 financial year budgeted airport operating expenses of $2.6million are funded by aeronautical revenue of $1.6million a shortfall of $1million that is met by industrial land rentals of $2.5million.
There would be few activities of council that would not meet Cr Faulkner's definition of being 'self funding 'and 'user pays” i.e. non ratepayer funded were they to enjoy the luxury of such levels of non-core income. I am not saying this is wrong I am just asking for Cr Faulkner to be fair and transparent in his writing on council matters.

Graeme Horsley, Mount Maunganui.

1 comment

Big difference between airport & art gallery

Posted on 18-05-2012 21:04 | By Phailed

The land surrounding the airport is all part of the airport landholding and was obviously purchased with foresight to safeguard the airport's future. It's a bit like an endowment fund and the income generated supports the whole airport ops. The Art Gallery supporters claimed they only needed a one off $1million from ratepayers and that they would fund the gallery through a sufficient endowment fund. The ongoing funding required annually would seem to indicate they were not successful with an endowment fund to ensure the gallery's sustainablility.


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