07-03-2015, 08:23 PM
Here is a link to Nicks website and a succinct piece that he posted about airports;
http://www.nickxenophon.com.au/media/nic...oly-risks/
Here is a snippet;
"Credible reports from Michael West and Fairfax Media show that Sydney Airport Corporation pays little or no tax to the federal government. According to Mr West—a very experienced business journalist—Sydney Airport did not pay any tax in its first 10 years but has delivered more than $1 billion in fees to advisers and financiers. Because it is a monopoly, it can afford to carry huge debts and it claims interest on that debt as a tax deduction. That effectively cancels out any profits. The real profits are soaked up in hundreds of millions of dollars in fees to its bankers and financiers, each year. It is a nice little earner.
This monopoly privatised corporate entity generates about $700 million in financing costs soaked up on Macquarie Bank clients, bankers, advisers and security holders. To quote Rupert Murdoch, ‘A monopoly is a terrible thing unless you happen to own one.’ No wonder the ACCC has openly questioned why Sydney Airport received a first right of refusal to operate a second Sydney airport. In its 2013 airport updates the ACCC said that separate owners of the two Sydney airports would encourage lower prices and increase capacity and quality for customers. But that is not to be".
Ben covers the rest of the article at Plane Talking.
P_666
http://www.nickxenophon.com.au/media/nic...oly-risks/
Here is a snippet;
"Credible reports from Michael West and Fairfax Media show that Sydney Airport Corporation pays little or no tax to the federal government. According to Mr West—a very experienced business journalist—Sydney Airport did not pay any tax in its first 10 years but has delivered more than $1 billion in fees to advisers and financiers. Because it is a monopoly, it can afford to carry huge debts and it claims interest on that debt as a tax deduction. That effectively cancels out any profits. The real profits are soaked up in hundreds of millions of dollars in fees to its bankers and financiers, each year. It is a nice little earner.
This monopoly privatised corporate entity generates about $700 million in financing costs soaked up on Macquarie Bank clients, bankers, advisers and security holders. To quote Rupert Murdoch, ‘A monopoly is a terrible thing unless you happen to own one.’ No wonder the ACCC has openly questioned why Sydney Airport received a first right of refusal to operate a second Sydney airport. In its 2013 airport updates the ACCC said that separate owners of the two Sydney airports would encourage lower prices and increase capacity and quality for customers. But that is not to be".
Ben covers the rest of the article at Plane Talking.
P_666