Submission
Which option do you prefer?
Option Two – The alternative option – Keep Aurora Energy
Further comment
Keep Aurora. It has a monopoly & captive market. Selling to unknown investors will put this captive market into the hands of those whose interests run counter to the common weal and deny the captive market any say in its running. While publicly owned, it’s ultimately accountable to Dunedin citizens.
New owners will have to make a profit while doing all the maintenance Aurora must and servicing the capital involved in purchase. The captive, voiceless market will be required to pay more for the same service
With no plans, agreed to by Dunedin’s citizens, in place for precisely how to spend any profits, such a windfall may end up being frittered in projects that lack public support or be invested in more risky ventures
No longer owning an asset-rich company with a captive market, the DCC will have its credit rate downgraded putting pressure on rates to meet both higher interest rates and balance budgets with less borrowing.
Aurora's head office & management will leave Dunedin; if another lines company buys it, the engineers may leave as well.
Once, communication, energy, and transport were considered key infrastructure intrinsic to the running of society making public ownership essential. We sold Waipori when the Labour government required councils to choose to between owning generation capacity or networks, because (perhaps a jaundiced gloss:) public ownership of so much infrastructure deprived entrepreneurs of a market. Aurora is all we have left. It should remain in public ownership.
The reasons for selling - to reduce debt and to invest in more infrastructure - are things that should be undertaken as they can be afforded and within a borrowing regime that is affordable. Make existing infrastructure fit for purpose rather than creating more cycleways or resettling South Dunedin.
Let's cut our coat according to our cloth.
Supporting information
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Submitter
Submission id number: 1045203
Submitter name:
Rosemary McQueen
Organisation