In Reply to: re: Enda's legacy no.72 posted by Mairt on December 11, 2014 at 18:15:10:
.. "when all the parties seem to consider this a good move" .. yeah it is for the councillors 'bacon' .. NONE of them (SF included) could accept to see their 'dream infrastructure facility' in Mayo go the way of Galway Airport !
Yet what exactly is happening here ..?
MCC on OUR behalf are basically doing a 'Bank Bailout' for IWAK ..
They've run up MASSIVE DEBT over the years (why or how ? .. whats the story with their Cost Base ?) . and because they are a PRIVATE COMPANY they cannot get any Govn Assistance .. plain and simple .
So what are we now told.. that Mayo CoCo have come up with this 'Magic Plan' .... They have conceived to Pay Off almost 7.5 Million of the 9 Million DEBT by taking out a 'Loan' on IWAKS behalf .. The Interest on this loan will then have to funded by the CoCo (or spread with the other CoCo's .. if they run with it ?) and that money comes from Rates & Local Property Charges, etc
. it would be like a large 'Local Hotel' getting into Debt and the CoCo deciding to 'invest in it' by paying off their loans for them .. which I would presume the 'happy councillors' would then be up in arms over ...
What are the CoCo (s) getting for this 'Bail Out' .. a measly 17% ownership of a PRIVATE COMPANY .. has anyone been given details / valuation on the Airport facility to account for this 'Valuation' ? Shoulkd the CoCo not issue the Current 'Annual Accounts' of IWAK to the General Public ..since we're paying for this 'Sweet Deal'
After this deal goes through .. the Airport will be 'Debt Free' and be able to generate further 'Loans' to try and get their passengers No;s up and compete with Shannon . .. .. but that does not mean that they could not have further 'losses' (which is most likely) in the coming years .. which the CoCo's will be expected to cover 17% off (ie the Rate & Local Property Payers again)
SWEET DEAL .. !! Yeah it is if your IWAK
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