Teilweise neu: 2001-09-22
Contents of this issue:
1. Chances Fading
2. Profit From Funding
3. Talent Scout
4. Hotel Saga
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Old contents were:
1. Profit From Funding
2. Talent Scout
3. Hotel Saga
September 22nd, 2001
1. Chances Fading:
Turmoil in world wide airline businesses indicate there is little chance
in the near future of Niue getting a direct link from Auckland to the
island 2300kms north of New Zealand.
The Niue Economic Review reports main prospects for re-establishing a
direct link with the isolated island 500 kms east of Tonga are all
facing enormous financial problems and its likely the island of 1700
people will have to be content with the Royal Tongan Airlines twice
weekly Shorts 360 service from Nuku'alofa to Niue return.A memorandum of
understanding between RTA and the Niue Government expires next month and
will have to be re-negotiated, says the NER.
At present the Niue government waives landing fees and provides fuel to
RTA at wholesale rates.It also pays a subsidy on one flight a week if
passenger loadings in the Shorts 360 are below 15 seats.
Hopes of Niue securing a $2million soft loan from China for a national
airline were dashed earlier this week when an application made by
Premier Sani Lakatani was turned down.A previous attempt to form a Niue
based airline in 1999 collapsed after promises made by the Niue Peoples
Party disintegrated leaving the country a $400,000 debt.
The state of regional airlines precludes any realistic chance of
establishing a direct Auckland-Niue link especially in the light of
last-ditch efforts to save Air New Zealand which appear to have failed.
Air New Zealand provides code sharing flights with RTA between Auckland
and Nuku'alofa used by passengers travelling to Niue.
The Auckland based Sunday Star-Times reports the airline could be placed
in statutory management as early as this week as negotiations to save
the ailing airline get grittier.
Under statutory management, the government would appoint a manager to
sell the airline, keeping it flying in the meantime.
It is understood that at a crisis board meeting last Friday, acting Air
New Zealand chairman Jim Farmer told the airline's major shareholders -
Brierley Investments and Singapore Airlines - unless they committed to a
bail-out, the government would put the national carrier in statutory
management this week.
Statutory management is invoked when it is in the country's interest. In
this case, that means preventing Air New Zealand from being grounded
because of the ramifications for the economy, including tourism - now
New Zealand's second largest source of foreign income.
The government appoints a statutory manager and guarantees liabilities
to allow the airline to fly while a sale is negotiated. The government
would reach an understanding with the airline's dozen or so financial
backers to prevent them seizing the airline's assets.
2. Profit From Funding:
The Niue Development Bank recorded a net profit from operations of
$NZ246,340 in 1999 compared with $290,162 in the previous year, reports
the Audit NZ controller and auditor general David Mcdonald in a report
to the Legislative Assembly.
In an unqualified audit opinion the auditor general said the 1999 result
almost equalled NZODA funding of $249,963 but also reflected budgetary
assistance from the Government of Niue which totalled $55,000.
"However the net profit is also arrived at after a charge for increasing
the provisions for doubtful debts by $82,490 - reversing the trend of
decreasing provision over the previous three years," stated the report.
The auditor genral said as at June 30 1999 doubtful debts for business
loans were higher that 1998 by $99,000 and doubtful debts for housing
loans lower by almost $20,000.
3. Talent Scout:
Top Oceania weightlifting coach Paul Coffa MBE is visiting Niue to hand
out tips on the sport and spot potential talent in the code.
Coach Coffa heads Nauru Sports Committee and is renowned for developing
the sport in Australia over the past 20 years..
Niueans plan to enter a weightlifting team in next year's Commonwealth
Games in Manchester England in July 2002. Coffa who is also
general-secretary of the Oceania Weightlifting Federation is encouraging
Niuean talent to concentrate on weightlifting rather than powerlifting.
"Weightlifting is recognised as an Olympic and Commonwealth Games code -
powerlifting is not," he said during a TV Niue News interview. "There is
value in both sports but weightlifting will get you international
recognition."
During his four day stay on Niue Coffa is holding workshops and seminars
and hopes to spot talent for training at a new Oceania Weightlifting
Institute in Fiji.He has been unable to coach Niuean weightlifters
because of the lack of equipment.
4. Hotel Saga:
Only hours after signing an agreement with a group of local investors
and the Government of Niue controversy surrounds the lease of the 32
room Niue Hotel.
According to TV Niue News the government hastily withdrew the lease
saying it wanted to seek legal advice on the wording used in several
clauses. Secretary to Government Sisilia Talagi said it is hoped to have
the document re-signed before the end of the month.
But according to TV news reports shareholder Toke Talagi, a common roll
politician, was unaware of the government's action and said a working
bee had been planned for the hotel today. The investors say they hope to
have 15 rooms open for the self-government celebrations on October 16.
Sources say an original investment group was counting on 100
shareholders in New Zealand and Niue paying $1000 each to raise enough
to get the 27 year old hotel up and running. However investors have
been cautious to put cash up front and the group is reported to have
received less than half the amount sought. A second attempt at a share
float closed on September 20. Previous attempts to lease the hotel have
failed -an Auckland publican heading a group of NZ investors withdrew
due to equity requirements stipulated by the island's development bank.
It has been estimated that refurbishing the hotel will cost $350,000
over two years. To bring the property up to occupancy standard would
cost around $180,000.
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