(Picture Left: The New Management Team of the Cairns Piepans)
We are in financial hard times and raising unemployment rates here in Cairns, but do we have enough money to back the financially unfit Piepans basketball club to the tune of $1 Million guarantee? This is the same club less the CEO Denis Keeffe and the owner John O'Brien who is now bankrupt,. Together they had managed to run up debts that exceeded more than $6 Million. And has paid none of the local businesses that had extended credit to the old Piepans.
What guarantees do we the ratepayer have that this new ownership group will not run up uncontrollable debts in the future? None, yes the Cairns Regional Council (CRC) will have two councillors on the board of the new Piepans to check expenses. But will the CRC councillors have the time and wherewith all to check the groups expenditures? My guess is that this a foolish investment nee guarantee that we the ratepayers cannot afford. The team itself has only $500,000 of operating capital if all the pledges pay up. If we the ratepayers have a 2/3 financial interest in the Piepans, then should we not have 2/3 of the board seats rather than just two? And apparently the new salary cap for the NBL is $1.2 Million, inclusive of cars and super.
I support the financially responsible stand that Crs. Rob Pyne and Julia Leu took in opposition to the guarantee. They at least had respect for ratepayers money as the others took the popular position with no concern for the finances! This is a very high risk investment and will be heading for a similar end like the old Piepans.
And that's The Northern Truth!!
What guarantees do we the ratepayer have that this new ownership group will not run up uncontrollable debts in the future? None, yes the Cairns Regional Council (CRC) will have two councillors on the board of the new Piepans to check expenses. But will the CRC councillors have the time and wherewith all to check the groups expenditures? My guess is that this a foolish investment nee guarantee that we the ratepayers cannot afford. The team itself has only $500,000 of operating capital if all the pledges pay up. If we the ratepayers have a 2/3 financial interest in the Piepans, then should we not have 2/3 of the board seats rather than just two? And apparently the new salary cap for the NBL is $1.2 Million, inclusive of cars and super.
I support the financially responsible stand that Crs. Rob Pyne and Julia Leu took in opposition to the guarantee. They at least had respect for ratepayers money as the others took the popular position with no concern for the finances! This is a very high risk investment and will be heading for a similar end like the old Piepans.
And that's The Northern Truth!!
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