Post by Kiwi Frontline on Jan 9, 2024 15:06:58 GMT 12
Perce Harpham: EXPANDING THE COALITION’S TASK.
There are stories of Iwi being offered Government properties with a lowered valuation and a further 5% discount. Usually there is said to be no limit on the time for acceptance. So the IWI has time to wait and see if the market value increases and also to make a sale before accepting the offer.
There are also stories of Ngai Tahu having built an office block in Christchurch after the earthquake offering it at such high rentals that there were no takers until the Government departments were ordered to do so.
An interesting Dompost article on 10/3/22 said;“Ngati toa Rangatira has bought 40 school properties north of Wellington as part of the Iwi’s Treaty settlement, making it the largest landlord of the Ministry of education ...........the ownership would provide a perpetual income for the iwi.”
Apparently the valuation had been about $345million but the title was transferred and the properties leased back. The lease of course would be paid from the Education Budget and, presumably, hidden there in the same fashion as the leases for the naval base in Devonport and various other properties transferred to Iwi in Treaty Settlements.
I have no details of any of such leases but this is crafty accounting which misleads the public. The Assets obviously disappear from the Government Balance Sheets and the ongoing costs are, I suppose, mentioned in notes as contingent liabilities. They are probably costed on a discounted cash flow basis. This could, using high school algebra, be calculated as being for perpetuity (infinity) but is likely to only be calculated for a 5 or 10 year term. But the true discounted cash flow cost must be at least the valuation figure or it would not have been accepted. And such costs will not appear as Government liabilities on the balance sheet. Or so I suppose…..
breakingviewsnz.blogspot.com/2024/01/perce-harpham-expanding-coalitions-task.html
There are stories of Iwi being offered Government properties with a lowered valuation and a further 5% discount. Usually there is said to be no limit on the time for acceptance. So the IWI has time to wait and see if the market value increases and also to make a sale before accepting the offer.
There are also stories of Ngai Tahu having built an office block in Christchurch after the earthquake offering it at such high rentals that there were no takers until the Government departments were ordered to do so.
An interesting Dompost article on 10/3/22 said;“Ngati toa Rangatira has bought 40 school properties north of Wellington as part of the Iwi’s Treaty settlement, making it the largest landlord of the Ministry of education ...........the ownership would provide a perpetual income for the iwi.”
Apparently the valuation had been about $345million but the title was transferred and the properties leased back. The lease of course would be paid from the Education Budget and, presumably, hidden there in the same fashion as the leases for the naval base in Devonport and various other properties transferred to Iwi in Treaty Settlements.
I have no details of any of such leases but this is crafty accounting which misleads the public. The Assets obviously disappear from the Government Balance Sheets and the ongoing costs are, I suppose, mentioned in notes as contingent liabilities. They are probably costed on a discounted cash flow basis. This could, using high school algebra, be calculated as being for perpetuity (infinity) but is likely to only be calculated for a 5 or 10 year term. But the true discounted cash flow cost must be at least the valuation figure or it would not have been accepted. And such costs will not appear as Government liabilities on the balance sheet. Or so I suppose…..
breakingviewsnz.blogspot.com/2024/01/perce-harpham-expanding-coalitions-task.html