Rotorua Airport saga: What has happened

Just over a week ago, Rotorua's councillors were told debt for the redevelopment of the airport was spiralling out of control - urgent measures had to be taken to halt the rise.
Rotorua District Council chief executive Peter Guerin told councillors he needed to find $3.66 million to pay off interest on council's airport debt and, in an unexpected about-turn, asked them to consider making ratepayers foot the bill.
Two years of unpredicted global recession, delays in construction and Qantas pulling out its domestic flights were among the reasons given for the debt blowout and Mr Guerin said while he was loath to ask ratepayers for the money, he might have no other option.
Both Mr Guerin and Rotorua Mayor Kevin Winters had said on numerous occasions in the past that ratepayers would not have to pay a cent for the airport's redevelopment.
Debt owed by the Rotorua Regional Airport totals almost $60 million, the council previously saying ratepayers would not have to pay as it expected the airport to be self-funding. Revenue was predicted to be $4.082 million by the 2011/12 financial year.
But the airport is budgeted to make only $774,000 this financial year, almost $3.3 million below target.
Mr Winters said he was the first person to say ratepayers would not have to pay for the airport redevelopment about six years ago.
"The world has changed and I was wrong. I apologise for that analysis but the reality is here and unfortunately ratepayers will have to help the Rotorua Airport," he said.
Public reaction has been swift and often uncomplimentary. It's been revealed councillors knew about the debt problem for some time bit were unaware of its extent.
Ratepayers began calling for the resignations of the city's mayor and council chief executive.
The Rotorua Regional Airport Company is a 100-per-cent owned subsidiary of the Rotorua District Council and pays rent to use the council's assets such as the terminal building and runway.
It is the council, not the Airport Company, that owns the assets and is in debt of about $60 million.
Councillors called for a full report from Mr Guerin, who was to present it to council's Economic and Regulatory Services Committee on Monday.
However, at Monday's meeting Mr Guerin said he had not completed his report and asked for more time. He was given until Thursday next week, at another meeting of council's Economic and Regulatory Services Committee.
Mr Guerin, who is also a council-appointed member of the Rotorua Airport board of directors, said he hoped councillors would allow him and his staff to find the money and keep an upcoming rates increase to a maximum of 3.5 per cent, instead of councillors cutting the budget.
"It's almost $4 million and we haven't got enough revenue to fund it and we'd have to go and borrow money - that's just not clever.
"It was okay when we thought we'd have six flights a week to multiple destinations but that's not going to happen this year or next year," he told The Daily Post.
Since then, former district councillor and Rotorua Regional Airport Company board member Bob Martin said he and other board members had alerted Mr Winters and Mr Guerin to the debt problem, but were ignored.
"All they had to do was look at the financial statements. It was plain to see the interest was going to be greater than income. Don't point the finger at the Airport Company, point it at the mayor," Mr Martin said.
Airport Company chairman Ray Cook said the company continued to run at a profit, but not at pre-2008 levels.
"This money needed to be spent for the domestic service as well - to keep our airport operational.
"Should one of New Zealand's top tourist destinations not have an operational airport? That would be going back to the dark ages," Mr Cook said.