| Koerner responds to Natoli brochure |
| Written by Jason Wilson | |||||
| Monday, 10 March 2008 | |||||
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Richard Koerner, treasurer of the Coolum Residents association, writes in with a few rebuttals of former Maroochy Mayor Joe Natoli's election advertising.
There is a particularly misleading brochure put out by Joe Natoli former Mayor of Maroochy talking up the financial performance of the Sunshine Coast airport and presenting misleading statistics on rates. In 05/06 the required commercial return on investment component is stated to be $4.6 million, so the airport actually incurred a net loss of $1.7 million. Using this same approach that applies to any commercial business, the Airport has incurred net losses each year up until 06/07. The cumulative shortfall since becoming a commercial business unit now amounts to more than $14 million. Despite this sorry record Council has acquired land for a future East-West runway that will involve the need for additional expenditures of some $70 million, and more than double rate-payer's investment. The Annual Report for 06/07 suggests the Airport's net profit amounted to just $36,000, provided one accepts manipulation of asset values and costs relative to the original Budget estimates. The Mayor has been asked to provide recent statements of financial position that used be provided up until the 2001/02 Annual Report, to give residents adequate financial transparency to assess the performance of Maroochy's business units. This has not been done. His brochure also says that the Sunshine Coast Airport is a tremendous asset and worth about $150 million. If that is the case why is its valuation put at only $64.7 million in the 2006/07 Annual Report? Mr. Natoli is now standing for Mayor of the Sunshine Coast Regional Council based on his performance record in Maroochy Council, and his commercial business skills. Financial performance of the airport to date does not exhibit strong commercial business skills. Also: A particularly misleading letter drop by Joe Natoli compares rate increases for Maroochy, Caloundra and Noosa over the last three years. What is not mentioned in the brochure are truly comparable average rates and charges including those for water and sewerage services. The latest available realistic comparisons of Maroochy Council's rates and charges with those of Noosa and Caloundra can be found in the local government comparative statistics for 2005/06 published by the State Government. For example, if Coolum had been fortunate enough to be part of an expanded Noosa Shire that year, average rates and charges would have been lower by $133. If Maroochydore had been part of Caloundra Council, its average rates and charges would have been more like those of Caloundra City, and lower by some $300.
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