A secret subsidy for Singapore Air

Stuff reports:

The leaking of details of a multi-million dollar subsidy for Singapore Airlines flights into Wellington has “undermined” Wellington City Council’s relationship with the airline, leaked emails claim.

In the days after Singapore Airlines and Wellington International Airport announced a new service linking the capital to Canberra and Singapore, documents emerged showing the council had agreed to subsidise the service.

While the document – a presentation given to councillors the day the flights were confirmed – gave only a basic outline of the agreement, it appears the council’s Destination Wellington Fund will contribute close to $9 a passenger, over 10 years.

If the service reaches projections of 90,000 passengers a year, a level at which the frequency of flights would likely have to be increased from four times a week to a daily service, the subsidy could cost around $800,000 a year, every year for a decade.

This is incredible. So ratepayers are basically giving up to $800,000 a year to one of the world’s largest companies. And most shamefully it was all done in secret.

Corporate welfare gone mad.