Albanese does nothing on Sydney Airports
Previously Qantas had a reason for arriving prior to 6am and now they don't, plain and simple. There is no restriction on their departure from Singapore.
They made their bed in Dubai they can lie in it.
Who were the selfish few who introduced the curfew in the first place?
They made their bed in Dubai they can lie in it.
Who were the selfish few who introduced the curfew in the first place?
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Sydney Airport and the magical mystery tour
Sydney Airport and the magical mystery tour
Michael West August 24, 2013 - 3:00AM
The government should really have just paid those MacBankers a billion dollars in protection money and hung onto Sydney Airport. A contract might even have been drawn up by the prime minister of the day, John Howard: ''We, the people of Australia, pay you, Macquarie, $1 billion upon your undertaking not to deplete the finances of the Commonwealth by your financial engineering.''
Instead, Macquarie owns the airport, and a cool $1 billion-plus in fees so far - and it celebrated its 10th anniversary this very week of not paying any corporate tax.
As for we, the Great Unwashed, we mere taxpayers, we now have a hole in our annual tax-take, and no airport either. But it is true that Macquarie did scrape together $5.6 billion of other people's money to pay for it. So, we mustn't complain.
The year before Sydney Airport was privatised in 2002 it paid $54 million in tax. Adjusted for the time value of money, it would have tipped $1 billion into Commonwealth coffers by next year had it never been auctioned.
In construction deals such as Brisbane's Airport Link and Clem7 Tunnel, and Sydney's Lane Cove and Cross City tunnels, the private sector committed the funds, took the risk and defaulted. The public got first-class toll roads. And assets were built, not just flogged to be gutted of costs and geared up.
To be fair to dear old Macquarie, though, it is not entirely alone in this tax chicanery. Others run similarly geared trust structures. Take Transurban, the big toll-roads operator, which churns out billion-dollar revenues and has only paid tax once - it must have been a slip-up. It will pay a lot of tax, it says, at the back end of its 30-year road concessions. One day, over the amortisation rainbow.
At this point, a disclaimer is germane, for we said earlier ''Macquarie owns the airport''. This is not strictly true. Macquarie Airports, a satellite fund, did have the concession. But in 2009, Macquarie Airports paid its parent, Macquarie Group, a fee of $345 million to go away and not manage it any more. True story.
So, Macquarie Airports changed its name to Sydney Airports, which is an $8 billion company on the ASX, although it kept largely the same management, board and strategy.
And we can report, a little ruefully, that the ties have not exactly been, ahem, brutally severed. In a secluded section of the results presentation this week there is reference to a ''Simplification Process'' slated to cost $54 million.
This brought great joy to the heart of your humble essayist - not in sheer wonderment at how they could, with a straight face, charge investors $54 million to simplify something they made complex in the first place - but rather because our instinct sensed the invisible hand of Macquarie at work.
This unearthly premonition was soon fulfilled when our intrepid aviation reporter Matt O'Sullivan confirmed that Macquarie would be indulging in this $54 million fee as financial advisers to the … err … Simplification, alongside PwC, Allens and Ashurst.
Had we not seen this clandestine coven of fee-concocters somewhere before? That's it! In Duet's symphony of fees.
Duet owns pipelines and transmission towers and used to be managed by Macquarie and AMP until they were paid $100 million by Duet to go away. Like Airports, Duet is a leveraged trust structure.
Having increased the number of entities in the spaghetti mud-map which is its corporate structure from four to six, Duet's management and board, just six months later, paid the aforementioned fee-hunters $10 million to execute a ''Simplification Plan'' and reduce the number of entities from six to four. True story.
Sydney Airport has priced its Simplification at $54 million - which is not only $44 million higher than Duet's Simplification but, let's face it, $54 million too much.
Departing from this financial engineering chipmonkery, it is useful to compare the Sydney Airport vehicle with Auckland International Airport, which also released its results this week.
Auckland paid the statutory rate of tax despite having a good deal of debt, too. The Kiwis lost the plot a tad with their EBITDAFI - earnings before tax, interest, depreciation, amortisation, and fair value adjustments in investments (they have equity interests in Cairns, Mackay and Queenstown airports).
Despite this EBITDAFI artifice, Auckland earned a 25 per cent increase in bottom-line profit compared with Sydney's 10th straight tax-driven loss. Melbourne Airport, too, reports a decent profit, but pays its share.
And there are plenty of large corporate players like Sydney Airport minimising their tax to unreasonable degrees via trust structures to pay out distributions on which the investors may pay the tax - contingent on rulings from the taxman.
Budget deficits experienced by nearly every country are unlikely to come back into balance until governments get together and take concerted action on tax loopholes and internet-based tax minimisation.
Sydney Airport and the magical mystery tour
Michael West August 24, 2013 - 3:00AM
The government should really have just paid those MacBankers a billion dollars in protection money and hung onto Sydney Airport. A contract might even have been drawn up by the prime minister of the day, John Howard: ''We, the people of Australia, pay you, Macquarie, $1 billion upon your undertaking not to deplete the finances of the Commonwealth by your financial engineering.''
Instead, Macquarie owns the airport, and a cool $1 billion-plus in fees so far - and it celebrated its 10th anniversary this very week of not paying any corporate tax.
As for we, the Great Unwashed, we mere taxpayers, we now have a hole in our annual tax-take, and no airport either. But it is true that Macquarie did scrape together $5.6 billion of other people's money to pay for it. So, we mustn't complain.
The year before Sydney Airport was privatised in 2002 it paid $54 million in tax. Adjusted for the time value of money, it would have tipped $1 billion into Commonwealth coffers by next year had it never been auctioned.
In construction deals such as Brisbane's Airport Link and Clem7 Tunnel, and Sydney's Lane Cove and Cross City tunnels, the private sector committed the funds, took the risk and defaulted. The public got first-class toll roads. And assets were built, not just flogged to be gutted of costs and geared up.
To be fair to dear old Macquarie, though, it is not entirely alone in this tax chicanery. Others run similarly geared trust structures. Take Transurban, the big toll-roads operator, which churns out billion-dollar revenues and has only paid tax once - it must have been a slip-up. It will pay a lot of tax, it says, at the back end of its 30-year road concessions. One day, over the amortisation rainbow.
At this point, a disclaimer is germane, for we said earlier ''Macquarie owns the airport''. This is not strictly true. Macquarie Airports, a satellite fund, did have the concession. But in 2009, Macquarie Airports paid its parent, Macquarie Group, a fee of $345 million to go away and not manage it any more. True story.
So, Macquarie Airports changed its name to Sydney Airports, which is an $8 billion company on the ASX, although it kept largely the same management, board and strategy.
And we can report, a little ruefully, that the ties have not exactly been, ahem, brutally severed. In a secluded section of the results presentation this week there is reference to a ''Simplification Process'' slated to cost $54 million.
This brought great joy to the heart of your humble essayist - not in sheer wonderment at how they could, with a straight face, charge investors $54 million to simplify something they made complex in the first place - but rather because our instinct sensed the invisible hand of Macquarie at work.
This unearthly premonition was soon fulfilled when our intrepid aviation reporter Matt O'Sullivan confirmed that Macquarie would be indulging in this $54 million fee as financial advisers to the … err … Simplification, alongside PwC, Allens and Ashurst.
Had we not seen this clandestine coven of fee-concocters somewhere before? That's it! In Duet's symphony of fees.
Duet owns pipelines and transmission towers and used to be managed by Macquarie and AMP until they were paid $100 million by Duet to go away. Like Airports, Duet is a leveraged trust structure.
Having increased the number of entities in the spaghetti mud-map which is its corporate structure from four to six, Duet's management and board, just six months later, paid the aforementioned fee-hunters $10 million to execute a ''Simplification Plan'' and reduce the number of entities from six to four. True story.
Sydney Airport has priced its Simplification at $54 million - which is not only $44 million higher than Duet's Simplification but, let's face it, $54 million too much.
Departing from this financial engineering chipmonkery, it is useful to compare the Sydney Airport vehicle with Auckland International Airport, which also released its results this week.
Auckland paid the statutory rate of tax despite having a good deal of debt, too. The Kiwis lost the plot a tad with their EBITDAFI - earnings before tax, interest, depreciation, amortisation, and fair value adjustments in investments (they have equity interests in Cairns, Mackay and Queenstown airports).
Despite this EBITDAFI artifice, Auckland earned a 25 per cent increase in bottom-line profit compared with Sydney's 10th straight tax-driven loss. Melbourne Airport, too, reports a decent profit, but pays its share.
And there are plenty of large corporate players like Sydney Airport minimising their tax to unreasonable degrees via trust structures to pay out distributions on which the investors may pay the tax - contingent on rulings from the taxman.
Budget deficits experienced by nearly every country are unlikely to come back into balance until governments get together and take concerted action on tax loopholes and internet-based tax minimisation.
Sydney Airport and the magical mystery tour
Thread Starter
Brilliant piece of Financial Engineering. That is truely amazing stuff. Take billions of dollars in debt which you will never pay and spin a nice tax free income out of it.
No wonder they don't want a new airport.
No wonder they don't want a new airport.
Last edited by neville_nobody; 24th Aug 2013 at 06:43.
Every time I/ we read this stuff it makes us cringe!
These billions that get bantered like so much 'Mars bars' are made up from you & I not the boffins or the Pollies!! MY tax $$'s are being wasted!
It's just criminal that this sort of thing goes on behind closed doors & large corporations are living off the back of the hard working Aussies whom are getting milked!.
This country has an inoperable cancer, it's called corruption & at all levels Govt & big business & there's no cure!
You know I look at other countries whom have huge political unrest with fighting in the streets, economies that are all but gone, many many innocent deaths right there on TV for us all to awe over yet the same thing is happening right here in our own backyard with the 'deaths' being the futures of the generations to come whom will pay dearly for the hidden unrest within
We need aviation in this country but we might as well dust off the horse & cart the way it's going !
The lucky country, Christ who are they trying to kid?
Wmk2
These billions that get bantered like so much 'Mars bars' are made up from you & I not the boffins or the Pollies!! MY tax $$'s are being wasted!
It's just criminal that this sort of thing goes on behind closed doors & large corporations are living off the back of the hard working Aussies whom are getting milked!.
This country has an inoperable cancer, it's called corruption & at all levels Govt & big business & there's no cure!
You know I look at other countries whom have huge political unrest with fighting in the streets, economies that are all but gone, many many innocent deaths right there on TV for us all to awe over yet the same thing is happening right here in our own backyard with the 'deaths' being the futures of the generations to come whom will pay dearly for the hidden unrest within
We need aviation in this country but we might as well dust off the horse & cart the way it's going !
The lucky country, Christ who are they trying to kid?
Wmk2
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Jock P many many thanks for your post, says it all, brilliant! It sums up what I meant when I said
in my previous post.
Thanks for your time and effort, much appreciated.
The Australian aviation industry is slowly being strangled by the "selfish few" in the politics business.
Thanks for your time and effort, much appreciated.
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Putting corruption aside (if that is ever possible), if the unthinkable happened and governments took measures to start clawing back their deficits by closing these tax loopholes for large companies as Jock P mentions, unfortunately everyone here knows that these companies will simply pass on the tax costs to the consumer (and the board members would give themselves squillions in bonuses for keeping profits up).
Prices would rise, and in Sydney's case, we'd have to pay the increased costs, after all, what other option to Sydney Airport do we have in Sydney???
Prices would rise, and in Sydney's case, we'd have to pay the increased costs, after all, what other option to Sydney Airport do we have in Sydney???
Thread Starter
Problem is that you will never be able to stop people taking out huge loans and deducting the interest, which is basically all they're doing. They the bounce it around a bit and collect a few fees. As long as they pay the minimal interest everything is tax free profit plus whatever fee they collect along the way. Smartest guys in the room that's for sure.
DPM under the pump on Badgerys Creek!
This will get interesting, from Planetalking
:
Don't anyone blink!
:
Hints of airport ambush out at Badgerys Creek
Opposition to a second Sydney Airport at Badgerys Creek has collapsed. Which party will be first to seize this opportunity to save or gain seats in the 7 September election?
A poll related story about a 2nd Sydney Airport
Until now there has been an unofficial yet obvious truce between Labor and the Coalition over declaring support for the building of a second Sydney Airport in the western half of its metropolitan sprawl at Badgerys Creek.
But could that end in an ambush, and one that would obliterate Labor’s chances of retaining vital key seats in the surrounding suburbs in the 7 September poll?
Reports like this one in The Telegraph of powerful community support for the new airport capture a sentiment that has been obvious on the ground in western Sydney for some time.
The airport’s time has arrived. People want the jobs, and travellers in the Sydney west want the convenience, of a major airport that will also compete for business with the much criticised existing airport in Sydney’s east.
The state of play so far has been that of a truce brokered by Labor’s deputy PM and Minister for almost everything including airports, Anthony Albanese, a long time supporter of a Badgerys Creek airport who toes the party line that the airport has to be somewhere else, based on bipartisan fears that making it an election issue might cause either side of politics to declare it will never, as in truly Never, be built.
Labor’s determined stance against bringing the benefits of a new airport to western Sydney has lead to widespread suspicion that it is sheltering interests that would be harmed by an airport, and want to profit from the release of the 1700 hectares of prime real estate for other developmental purposes.
Labor is trapped in the ludicrous position of insisting that there has to be a site for a second Sydney Airport at Wilton. Anyone who lives in the western electorates and is aware of the topography and environmental factors at Wilton would know that this is absurd.
The situation today is that if sitting Liberals and those challenging seats currently held by Labor in the area were to ambush Labor with a clear committment to going ahead with the airport it would deliver three, four or even five Labor held western Sydney seats to the Coalition.
Any declaration by Labor that it would never build an airport at Badgery’s Creek would backfire, and probably confirm the losses opinion polling indicates that the government will suffer in the 7 September election, when the omens are that it will be swept from office.
Which is another way of posing the question, what would Labor have to lose if it got behind community demands for an airport lead economic revival in western Sydney?
Opposition to a second Sydney Airport at Badgerys Creek has collapsed. Which party will be first to seize this opportunity to save or gain seats in the 7 September election?
A poll related story about a 2nd Sydney Airport
Until now there has been an unofficial yet obvious truce between Labor and the Coalition over declaring support for the building of a second Sydney Airport in the western half of its metropolitan sprawl at Badgerys Creek.
But could that end in an ambush, and one that would obliterate Labor’s chances of retaining vital key seats in the surrounding suburbs in the 7 September poll?
Reports like this one in The Telegraph of powerful community support for the new airport capture a sentiment that has been obvious on the ground in western Sydney for some time.
The airport’s time has arrived. People want the jobs, and travellers in the Sydney west want the convenience, of a major airport that will also compete for business with the much criticised existing airport in Sydney’s east.
The state of play so far has been that of a truce brokered by Labor’s deputy PM and Minister for almost everything including airports, Anthony Albanese, a long time supporter of a Badgerys Creek airport who toes the party line that the airport has to be somewhere else, based on bipartisan fears that making it an election issue might cause either side of politics to declare it will never, as in truly Never, be built.
Labor’s determined stance against bringing the benefits of a new airport to western Sydney has lead to widespread suspicion that it is sheltering interests that would be harmed by an airport, and want to profit from the release of the 1700 hectares of prime real estate for other developmental purposes.
Labor is trapped in the ludicrous position of insisting that there has to be a site for a second Sydney Airport at Wilton. Anyone who lives in the western electorates and is aware of the topography and environmental factors at Wilton would know that this is absurd.
The situation today is that if sitting Liberals and those challenging seats currently held by Labor in the area were to ambush Labor with a clear committment to going ahead with the airport it would deliver three, four or even five Labor held western Sydney seats to the Coalition.
Any declaration by Labor that it would never build an airport at Badgery’s Creek would backfire, and probably confirm the losses opinion polling indicates that the government will suffer in the 7 September election, when the omens are that it will be swept from office.
Which is another way of posing the question, what would Labor have to lose if it got behind community demands for an airport lead economic revival in western Sydney?
Smartest guys in the room that's for sure.
They were the most networked guys in the room.
One critical point that is often overlooked in the discussion about the second Sydney airport is that the sale agreement for all the shares in SACL (the company that holds the 50 year lease of the KSA site, starting 1 July 1998, with an option to renew for 49 years) also gave the purchaser a 30 year right of refusal to build and operate any second major airport within 100 kilometres of the Sydney CBD.
So, in order to get a second Sydney airport up and running, not only does it have to be electorally ‘popular’ – i.e. not potentially result in critical seats being lost to the government which makes the decision - but it must also result in the monopoly trough being deepened and widened for the current owners of the KSA lease. (Yeah: Like they’d really waive their right of refusal and let someone else build and operate another international airport in the Sydney basin. Competition is for patsies …
)
'creamy' we are already well into that 30 yr RoR by half & by the time the idiots make a decision & complete the drome ready for Ops that 30 yr period would be well & truly gone like most of us here.
Aviation hasn't changed fundamentally since the 'Wrong Bros' started it all a little while ago, what we need is a new way of transporting the masses.
Aviation has stalled & for all of us involved in aviation today I doubt we shall see any change in that situation in our lifetime or the foreseeable future.
Wmk2
Aviation hasn't changed fundamentally since the 'Wrong Bros' started it all a little while ago, what we need is a new way of transporting the masses.
Aviation has stalled & for all of us involved in aviation today I doubt we shall see any change in that situation in our lifetime or the foreseeable future.
Wmk2
The right of refusal covers the ‘build’ phase as well as the ‘operate’ phase.
The only way to keep the current owner’s snout confined to the KSA trough is to wait until 1 July 2028 to enter the ‘build’ contract for the second airport.
Or give them lots of money to waive their right....
The only way to keep the current owner’s snout confined to the KSA trough is to wait until 1 July 2028 to enter the ‘build’ contract for the second airport.
Or give them lots of money to waive their right....
Last edited by Creampuff; 26th Aug 2013 at 03:53.
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100 klm out from SYD CBD is not that far nowadays with very fast rail and I'm sure there'd be plenty of suitable land available or that could be made available.
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So we back to the 2nd Airport for Sydney at Canberra is now the only option or wait till 2028! Or pay SACL billions in compensation for them to give the Government permission to allow a new airport within 100km of the CBD.
The RAAF won’t be moving out of Williamtown, to Evans head or elsewhere.
What’s required is more concrete at Williamtown.
Lots more. Lots, lots more.
… And a rail link to/from Williamtown/Sydney. No need for ‘very fast’. Just ‘slightly faster than average’.
… And a six lane freeway link to/from Williamtown/Sydney.
What’s required is more concrete at Williamtown.
Lots more. Lots, lots more.
… And a rail link to/from Williamtown/Sydney. No need for ‘very fast’. Just ‘slightly faster than average’.
… And a six lane freeway link to/from Williamtown/Sydney.
We chose a couple of weeks ago to fly into Williamtown from Brisbane because we were going to the Northern suburbs of Sydney. The time and fare difference made it more attractive to go via Williamtown.
However, a better connection to the M1/F3 from Williamtown would be an improvement.
However, a better connection to the M1/F3 from Williamtown would be an improvement.
Change of thread title perhaps!
Maybe this thread should be titled Albo does nothing on aviation..fullstop!
However according to the DPM's recent speech given at the opening of the CAPA seminar everything is hunkey dory and on schedule with the white elephant paper 20 year plan...! {warning spew bags required}
Albo at CAPA 7-9 August 2013
Boy I pity the journos after that! Wonder who gets the job of disinfecting the spittle off the mikes and camera lenses?
However according to the DPM's recent speech given at the opening of the CAPA seminar everything is hunkey dory and on schedule with the white elephant paper 20 year plan...
! {warning spew bags required}Albo at CAPA 7-9 August 2013
Boy I pity the journos after that! Wonder who gets the job of disinfecting the spittle off the mikes and camera lenses?