Cr David Stewart is reported as saying that the Route K debt of $60 million plus $10.90 million in new debt (Pyes Pa Bypass cost contribution), totaling $70.90 million of debt will be repaid in full by 2040, how can this be?
The losses for the year to Jun-2011 were $2.522 million, there is more interest on the Pyes Pa debt, this is more than the toll increases for cars and will result in if anything larger losses for this year!
TCC's original budget in 2002 (critiqued by LTNZ very unfavourably) predicted 12,000 vehicles/day, 8 years later the numbers have struggled to reach 50% of that.
End result the large losses have been added to debt annually hence around $31 million of debt in 2004 is now $70.90 million now. The trend is obvious and little new is apparent to provide any comfort to ratepayers except a continuation of the same.
NZTA have always said 'if and when viable we will look at taking it over”, after 8 years we are still awaiting the miracle.
To break even the tolls must double NOW, to pay off the debt (table loan basis, needs another $2.30 million) current tolls need to increase by x3, if not by quantity then it must be by value of tolls paid!

I Stevenson, Tauranga.