Mercury: Airport plunge fails super fund
NICK CLARK
Mercury – Sat 15 Dec 2012
THE Retirement Benefit Fund’s $99.8 million investment in the Hobart International Airport again has proved disappointing with no dividend on the investment in 2011-12.
While partner Macquarie Global Infrastructure pocketed $2.2 million in management fees, the RBF received nothing on behalf of Tasmanian superannuation investors because of a crippling debt burden.
RBF has received just one dividend of $750,000 in 2010 since it contributed to the massive $350 million paid for Hobart airport in 2008 by the Macquarie/RBF joint venture. Macquarie has received fees of nearly $10 million over the same period.
The price paid to TasPorts was believed by many to be too high, given that it was at a multiple of 32 times earnings, compared with the industry average of about 15.
RBF and Macquarie contributed $200 million between them and set up a complex series of four companies, including the parent company Tasmanian Gateway Corporation which then borrowed a further $173 million.
Interest from the loans has crippled the companies in the group over the past year.
Hobart International Airport Pty Ltd recorded an $11.8 million loss, saying the loss “can be attributed to an $11 million interest expense to Tasmanian Gateway Corporation”.
As the Australian reported the sale in 2007:
‘Mr Aird said the Government had appointed a probity adviser for the sale process.
“The Government expects there to be strong interest in the purchase of the Hobart International Airport Pty Ltd,” he said.’
…
http://www.theaustralian.com.au/news/buyers-in-holding-pattern-on-hobart-airport/story-e6frg6ox-1111113887980
Background, From the state government’s web site:
Probity Adviser Directory
A probity adviser is an individual who is engaged to observe, review and report on the bidding and selection process in government procurement projects and to provide advice on probity issues which may arise, to ensure that the process is equitable and that it is conducted with integrity. Government procurement projects may include consultant and contractor services for capital works, infrastructure projects, leasing arrangements and divestments.
http://www.purchasing.tas.gov.au/buyingforgovernment/getpage.jsp?uid=CBA9197EBE92967FCA256EFB0024D1DA
But wait – there’s a directory – with names and all (at least there is now):
Tasmanian Government Probity Directory
http://db.purchasing.tas.gov.au/domino/bfg.nsf/all-v/BB81CD084ECD65ECCA257433000E5342
Earlier on Tasmanian Times:
RBF’s recent history is rather unedifying …
• Bob McMahon: What the hell is going on?
• As dozens of Tasmanian RBF jobs go … meet RBF’s new best friend …
• Airport investment writedown
• John Lawrence: Hobart airport: The Full Monty
• The scandal of Hobart airport
This latest example of Tassie incompetence comes on top of The PV Fortescue saga, the aborted departmental rollout of Mac computers, the digital radio network that’s 6 years behind schedule, flaws in new speed cameras:
• Police modified boat ‘so it looked better’ includes links to earlier stories
