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Wednesday, June 15, 2011

NZ Herald backs Sky City Convention Centre to the hilt

At the risk of boring my readers rigid with yet another post about the Sky City Convention Centre, let me be as brief as I can.

The New Zealand Herald has been highly critical of Sky City Entertainment Group Ltd [SKC.NZX] in the past in its pages but has come out earlier this week and fully backed the company in its proposal to fund a National Convention Centre for the benefit of all New Zealanders:

The strongest argument for Sky City building and fully funding its construction and ongoing costs is encompassed in the following key paragraphs:

"But if SkyCity can make a convention centre pay without need of a public subsidy, its case is better. It means the public will not be taking on the risk that the centre will not attract sufficient conferences on the scale required - a risk all the greater when it is operated by a public body with public finance to fall back on.

SkyCity will carry the risk, giving it every incentive to compete keenly with other international conference destinations. Auckland's interest will be carried by a company that already runs a smaller convention centre with its casino. It is, as a Labour Party spokesman complains, a "multinational". It knows the business and must have confidence that Auckland can compete.

It is not clear whether the company's request for additional casino capacity is vital to its convention plans. It may be that the only thing the company needs from the Government is an assurance that it will not fund a competing facility. No business can compete with a bottomless public purse.

SkyCity has proven its competence and its commitment to Auckland. This investment offers more jobs, more visitors, more business for the city at no public outlay. In the end, that must recommend it." NZ Herald, 14 June 2011

The issues over negotiating details around gaming law changes are a moot point and sides taken by various members of the public must not cloud the ultimate aim of the convention centre and that is to provide a stimulas to the economy at a time when the country is suffering the worst recession since the Great Depression at no risk to the local or state governments.

That clearly must be applauded whatever side you come down on in terms of politics and attitudes to gaming.

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c Share Investor 2011

Tuesday, June 14, 2011

VIDEO - Sky City Entertainment Group : Parliamentary Question Related to Convention Centre

Monday, June 13, 2011

Jan Cameron makes her move on Kathmandu

Jan Cameron has made her first move, after a restraint of trade was lifted on May 2, to compete directly with the company she sold in 2006 Kathmandu Ltd [KMD.NZX].

It has been reported that she has invested an initial 20 million into kiwi outdoor clothing chain, Macpac to go head to head with KMD in Australasia and presumably in other markets KMD trades in. She is one smart cookie whose business acumen in retailing should never be underestimated by her competitors and she has strong contacts in retail and retail suppliers in this part of the world and elsewhere and her expertise in the outdoor retail sector cannot be underestimated.

Cameron has several individuals within Macpac that are former associates at Kathmandu and they have an aggressive expansion plan in place to take on KMD.

While Macpac currently has fewer branded stores than Kathmandu's 100, with only 29 in Australasia, Macpac's products are stocked in over 100 retail outlets worldwide so have a broader brand recognition if a global business is what management are looking at in the long term.

Kathmandu as a strong in your face brand have the outdoor sector mostly to themselves in New Zealand and Cameron's expertise and contacts in retail will be a formidable challenge to Kathmandu and its impressive retail margins that they have placed their whole business model and recent IPO on.

Management at KMD will be seriously worried about this and as Macpac gets a larger retail footprint across this part of the world revenue and profits will be cut.

Make no mistake it will be cutthroat between these two brands and the winner will be the consumer in the end.

It remains to be seen which retailer will come off the big winner but my money is on Jan.

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c Share Investor 2011

Sky City to pay for National Convention Centre

Share Investor

Wednesday, June 15, 2011

NZ Herald backs Sky City Convention Centre to the hilt

Tuesday, June 14, 2011

VIDEO - Sky City Entertainment Group : Parliamentary Question Related to Convention Centre

Monday, June 13, 2011

Jan Cameron makes her move on Kathmandu

Sky City to pay for National Convention Centre

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