Yesterday I wrote a post about Stuart Nash and the bludger farmers who want to burden ratepayers of the Hawkes Bay for a dam that only they will benefit from. Some commenters passed judgement that I was full of crap and this was investment in infrastructure blah blah blah…then along came Brennan McDonald and his comment:
If the farming sector is so productive and profitable, or would be made so by this dam, why do they need to get every other ratepayer to chip in?
If they really needed it, and weren’t just looking for a handout they’d write the cheque themselves.
The farming sector’s return on assets is dismal. If it wasn’t for capital gains and the tens of billions of dollars banks can’t afford to write down on agricultural debt the loans would have been called in years ago.
Interest cover ratios are abysmal in agriculture.
As for sports stadiums, the economic literature and real world experience is clear they are a waste of money.
There is no difference between saddling Hawke’s Bay ratepayers with a $600 million “productivity enhancing” boondoggle and Dunedin ratepayers $200 million stadium for a rugby union that traded while insolvent.
Both force higher rates in the long term for something they might not even benefit from.
Just look at the Mangawhai sewerage system stuff up!
He is dead right…if this dam is such a commercial genius of a plan then why don’t the farmers form a company, raise funds on the stock market and run it as a commercial venture? Because the plan is crap, the numbers don’t stack up and dollars to donuts there is some dodgy ‘science’ behind the council projections and justifications.