Queenstown Lakes ratepayers shouldn’t get too excited about their estimated $485 each share of Queenstown Airport Corporation’s (QAC) record $19.6M dividend, which was announced this morning (Wednesday August 21).

Queenstown Lakes District Council’s (QLDC) share of the dividend - $14.7M - will be used to pay down debt, mayor Glyn Lewers has confirmed. 

QLDC holds 75.01 percent of QAC shares, so its portion of the annual dividend is $14.7 million, which equates to about $485 per ratepayer.

Glyn said this was a “strong result for QLDC”, and around $3.4M beyond earlier forecasts. 

“The dividend will be used to pay down debt as per council’s adopted policies and it will therefore enable more breathing space for managing council’s debt ceiling,” he said.

The council’s average net debt to total revenue ratio over the current draft Long Term Plan’s ten year period is estimated to be 259.5 percent (which is within the council’s limit of 280 percent).

The LTP says council’s approach has been to remain within a 280 percent borrowing limit to ensure there is sufficient contingency in case of an emergency event, unforeseen maintenance, or changing legislative requirements.

Glyn acknowledged the airport’s strong performance.

“As 75.01 percent shareholder for the QAC, QLDC welcomes a very positive year and successful financial outcome for the airport. This is a very strong performance and shows that the strong leadership of the board and the executive has developed and maintained a stable, high-performing organisation that delivers on the needs of the community,” he said.

Read more: Queenstown Airport announces record dividend, big plans for infrastructure

PHOTO: Supplied