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Home / Rotorua Daily Post

Letters: Council has no business being in business

Rotorua Daily Post
11 Dec, 2017 03:00 PM2 mins to read

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Mudtopia Festival. Photo / Ben Fraser

Mudtopia Festival. Photo / Ben Fraser

Council is in fantasy land. It has decided that Mudtopia was such a success that they will be running it again next year. Despite the short-term popularity of this decision with some beneficiaries, can council please use financial criteria, with ratepayers' interests in mind, and put a stop to the nonsense.

What is the future on revenues? The out-of-towners who paid full price will realise that they were suckered and never come again. The locals who were given freebies will expect the same again next year. Overall demand will increase but revenues will collapse.

And the future on costs? To meet expectations raised by this year's event, and address inflation, delivery costs will have to rise. The immediate result will be an even bigger white elephant that will have to be legitimated by an even larger rent-a-crowd.

What are the facts on profit/loss sharing and sustainability. The council's overall loss of over $400,000 will have to be borne entirely by ratepayers. It will be added to council's debt.

Council has no business being in business. In my view it lacks basic business competency. It should not be wasting ratepayers' money on paying contractors to provide "free" entertainment.

[ABRIDGED]
REYNOLD MACPHERSON
Rotorua

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Re. 29 new villas for Rotorua (Rotorua Daily Post, December 9).

Well done Rob Davies for supplying these villas for the starved end of the property market. Hopefully you will be able to continue in the same vein. "The best council I've literally dealt with". Take a bow. Now all we have to do is find a developer to do the same thing for the rental market.

TIM EDWARDS
Rotorua

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