from former Cr Gwynn Compton
Thanks to a LGOIMA [Official Information] response I was forwarded, I can reveal that Kāpiti Coast District Council is effectively subsidising Air Chathams by an average of $250,000 a year.
Now, some of this was known publicly before — such as the $50,000 payments for marketing support and the $500,000 loan that finally became public after Council officers decided to impair it (i.e. believing it would be unlikely to be repaid), but the bulk of those payments made to Air Chathams will be news to most residents.
Is this money well spent? Arguably it was justified in terms of trying to get an operator to replace Air New Zealand and then to re-establish services after the first covid Lockdown (and other councils did similar). I’d also note I was one of just three councillors at the time who pushed for the loan to be made public.
But if this rate of effective subsidy continues, then we have to ask why Kāpiti Coasters aren’t using Air Chathams enough for it to stand on its own two feet, and if there’s a more effective use for that money.
Hopefully, some of our current councillors will not only ask these tough questions, but they’ll push to get the discussions being held in public excluded at this Thursday’s Strategy, Operations and Finance Committee released to the public.
The bigger issue than what Gwynn mentions is how many and in what category are the people who actually use Air Chathams? Its flights have very small capacity and its clientelle is basically a small elite group of business people. There is no justification for this discussion being held in secret session. —Eds
A question to ponder ……………… was the KCDC subsidising the Origin Pacific operation out of Paraparamu, with a direct flight to Auckland, return (circa 1996 to 1998). ……….. the service that started with the Jetstream 31 (a 19 seater turbo prop), and which was in a short time reduced to the Associated Aviation (the Russell Jenkins flight training school operation) Cessna 421.
Robert Ingles, the owner of Origin Pacific (the shark; the back stabbing bastard, who could not run a bath, neither mind an airline) walked away from an insolvent operation (job losses, creditors suffering almighty losses; and the day after Origin was shut down, Ingles bought a hop farm in Mot for approximately $500,000). Ingles walked away from the insolvency of Origin Pacific, scot-free ………… Criminal.
Was the KCDC involved, back then in the days of Origin Pacific, operating out of PP ??
Worthy of the question, considering the Air Chats suggested subsidies.
Thank you Cr Gwynn Compton for bringing this to the publics’ attention. Err, I suppose you knew about it when you were (Employed)?