Forum Archive Index - November 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

Peter, 

 

Can I just quote from page 20 of the AIA Annual report:

 

Economic Impact:

AIA generates and facilitates $14.17 billion worth of value added and;

Direcly or indirectly sustains around 236,000 jobs.

 

These impacts equate to nearly 14% of GDP and over 15% of national employment.

 

The largest national impacts can be attributed to:

International freight:  $ 5.21 bill.

International tourism $4.62 bill.

Domestic freight:      $2.39 bill.

 

In the Auckland economy, AIA generates and facilitates $6.91 bill. worth of value added;

And sustains 113,000 full-time equivalent jobs.

These impacts equate to 21% of Auckland region GDP and 22.5 % of employment.

 

The largest impacts on Auckland result from:

International freight: $ 2.53 bill.

Facilitation of international travel: $1.71 bill.

Associated business $ 1.41 bill.

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Detractors will say: What about the sale of Dutch airports, ie. Schiphol? 

 

True, many countries are selling infrastructure assets. But investors in some of those countries also have a more sophisticated outlook on savings patterns, superannuation and investment methods.

 

In any case, they have a massive range of well-run and in many cases, valuable international businesses. The size of these businesses is staggering!

 

You can rest assured that some of these countries have studied all the implications to the nth degree before a sale is made!

 

I very much doubt that the Dutch will build roads from any infrastructure sales. Instead, their investors take over US businesses.

 

Anyway, there are plenty of other large competing airports available within a short range! The Auckland Airport  is in many cases a monopoly and closely located to the main market!     

 

I find that the time horizon of investment in NZ is generally short. And so are the thinking  patterns of its leaders including many from the business world!

 

They tend to be reactive rather than proactive. The latter requires a thorough understanding of the issues involved, imagination and time. 

 

Fancy, selling a share in an exclusive asset such as AIA, the money to be used for roads. Before that happens, one needs to make a cost/benefit analysis or decide if an alternative asset can be sold instead!

 

Sofar, Auckland has done well from its investment in AIA; sure there will be hiccups from time to time; however, in the medium and longer term there will be increasing tourism.

 

This is complemented by AIA's retail areas and other businesses and there is still a lot of land available, as well!

(Too much land, perhaps). 

 

Yes, some time ago, I thought that AIA was worth about $5.

 

Talking of being proactive, the Oct.27, 2001, item below, is 8 days ahead of the article of your quoted web site:

 

http://www.sharechat.co.nz/archives/2001/10/msg00480.shtml    

 

Gerry