Kapi-Mana News : July 12th 2011
33 KAPI-MANA NEWS, JULY 12, 2011 OPINION / NEWS www.tommys.co.nz Phone: 04 233 0690 99 Mana Esplanade Paremata REAL ESTATE Esplanade Realty Ltd MREINZ Licensed REAA 2008 Property Management Services Available OPEN HOME: Sunday 2:00 - 2:40pm Murray Woodley MOB: 027 446 9288 DDI: 233 5017 Susan Woodley MOB: 027 243 3657 DDI: 233 5016 PAREMATA 42 Mana View Road - Buyer Enquiry Welcome From $795,000 32 2 HOIST THE MAINSAIL Located in a commanding position above the Pauatahanui Inlet with extensive 180° waterviews of the Inlet & Porirua Harbour you could be forgiven for thinking you could just sail away without even getting your feet wet? • Close to local cafes, beaches, public transport, medical & shopping facilities. • A quality home built of cedar & brick featuring beautiful wooden doors and T&G flooring. • Built over three levels containing all the content you would expect with an easy care section of approx 982m2. • 3 bedrooms with a separate master bedroom suite on its own level • 2nd lounge/office or large 4th bedroom • Open plan kitchen/family room with feature cathedral ceiling and polished wooden floors. • Open plan lounge & dining room • Double garage with internal access plus studio with mezzanine floor. • RV $850k. www.tommys.co.nz #M4180 www.open2view.com #247810 Junction hopeful in receivership Blighted from the beginning, the unsuccessful 9000 square metre Tawa Junction bulk retail centre has finally found its way to a receivership sale. Originally opened on the 2.7 hectare site in Surrey St, at the northern end of Tawa in 1989, the region s forerunner to mega centres or super centres immediately attracted tenants such as Lewis s, Cargo King, The Warehouse and others. But it struggled from day one having failed to gain planning approval for a supermarket which the developers always saw as critical to the centre s success. Lewis s were the last to leave the location three years ago. As it has passed through vari- ous owners over more than 20 years various activities have been tried, including a reinvigoration of a large part of the complex as a Building Depot outlet. That ceased when the parent company of The Building Depot was placed in receivership. Since then vandals and graffiti artists have dominated the prop- erty. There is one tenant occupy- ing about 2000 square metres but their lease expires in 2012. Colliers International broker Chris Gollins has the task of mar- keting the property by tender on behalf of the receivers of Equi- table Mortgages Limited. Despite its history, he is positive about the property s future. Wellington City Council s recent Plan Change 73 now finally extinguishes any possibility of a supermarket, or retail activity of less than 1500m2 on the site, forc- ing potential purchasers to see value in alternative uses, says Mr Gollins. The last owner as such was Hunt Group, owned by the late Peter Hunt who made two suc- cessful Resource Consent appli- cations for very extensive rest home, hospital and retirement vil- lage concepts. Two reputable valuers separately valued the land at more than $15 million for those purposes. Equitable became mortgagee in possession after Peter s death in 2009. The present rateable value is $7.4 million. Mr Gollins says time has worked for the receivers, with the Wellington region increasingly finding itself short of such large, flat land areas. Especially one with such a large, very functional building that offers potential for a vast number of uses. And in terms of staff getting to the site it has the benefit of Tawa station less than 100m away. I have absolutely no doubt we will achieve a satisfac- tory outcome for the receivers. Tenders close on July 28. Sideshows or news? TALKING POLITICS GORDON CAMPBELL As business commentator Rod Oram pointed out recently, exports comprise only 9 per cent of Auckland s econ- omic activity -- with the rest being devoted to meeting the consump- tion needs of the city s 1.4 million people. That s no way to run an econ- omy, Oram argued, adding that no-one can hope to build a world- class city on the likes of serving lattes to one s fellow citizens. Adding value to exports though, just doesn t seem to be our forte. New Zealand s export trade, for example, remains based on much the same low-value agricultural products as it was 100 years ago. In any given week, such mur- murings from the media sidelines are routinely lost amid the round of photo opportunities, sideshows and Beehive announcements. Lately the political agenda has been dominated by announce- ments about the rebuild of Christ- church, allegations about how menstruation affects women s pro- ductivity, and by the Prime Minister s attempts to pursue a trade pact with India -- which included a visit to a Bollywood film set, and a photo opportunity with his wife at the Taj Mahal. At home, events of comparable significance were unfolding virtually unnoticed. Without fanfare, Meridian Energy -- which is being readied for partial sale next year -- paid a special $521 million dividend to the Government, thanks to the sale of its Lake Tekapo assets to its fellow state-owned power com- pany, Genesis. To finance this purchase, Gen- esis borrowed $546 million from banks and raised $275 million from investors, and paid Meridian $821 million in all. Despite the borrowing, the mar- ket evaluation of Genesis rose sharply thereafter -- and why? As a Genesis spokesman told reporters, the rise was partly because of the company s long- term view on wholesale electricity prices . In other words, the public looks likely to be financing -- via higher energy prices -- this exercise in book-value wealth creation. It is wealth generated not by product- ive activity or by adding value to the nation s export earnings, but by a transfer of wealth between state agencies, and extracted (ultimately) from consumers. As Oram has indicated, we seem better at this than we are at adding value to our exports. Another example? Media atten- tion focused again on New Zealand s lack of a tax on capital gains, a tax that most other devel- oped countries take for granted. Not only would such a tax raise revenue, but it would push invest- ment down more productive channels than the buying and selling of houses. The argument mounted was also one based on fairness -- namely, that ordinary New Zealanders have been priced out of affording to buy a family home by property investors allowed to treat the gains from housing speculation as pure profit. Ordinary wage-earners are required to pay tax, but they are effectively subsidising property investors who pay no tax at all on the wealth accumulated via capi- tal gain. Precious little of this debate filtered through until talk of Labour s new policy heated up last week. Even during an election year, the agenda of political activity tends to devote little or no time to considering the structural aspects of the economy. And that s despite the fact that, arguably, those economic settings impact more substantially than the passing parade of headline events on the wellbeing of the public. Gordon Campbell is a politi- cal columnist who has written for The Listener and Scoop.
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