On 6, Oct 2006, at 17:46, Julian wrote:
> "Sue Burchett" <[EMAIL PROTECTED]> wrote
> in message news:[EMAIL PROTECTED]
>>
>> Waterfront has the news Watford is moving to Apsley in 2008. Cost
>> savings
>> will be 10 million over 10 years. How many million a year does Watford
>> cost to run?
>
> So you sell Watford for 30mil
> buy Apsley for 20 mil thats a 10mil cost saving :-0
I'm not an accountant but there will one along in an hour or two. That
isn't a cost saving by my reckoning. It's a conversion of property into
cash. It's what is often known as selling the family silver.
What we don't know is what it costs to run Watford and how operating
savings might occur by a move elsewhere.
However if they did sell Watford for £30M and, say invested it
somewhere offering even a measly 5% return, that would generate £1.5M
pa. If they moved to Apsley and paid £500K pa rent (for example) then
that is positive revenue of £1M pa and could be described as a £10M
benefit over 10 years.
Why is 5% measly in my book ? Because I heard that the pay back time
for creating new moorings is as low as 15 months. In other words £1M
invested on that basis would produce an income of £800K in year 1 and
presumably more than that in subsequent years. So I reckon 500* new
moorings on the Severn and G&S canal would produce a lot more than the
£400K odd BW claim to be saving by changing the working practices.
Potential moorings *
==================
Stourport 50 (Lichfield Basin & Middle Basin)
Diglis 50
Gloucester 100+ (big new building project there)
50 G&S the dead end created by realignment at the new relief road bridge
G&S general on line 100 at least (nobody needs to slow down on the G&S
when passing moored boats)
G&S old Sharpness lock area 100
Sharpness "new" docks 250
Total 700 !
@ £1500 pa for a 60ft boat I make that just over £1M of revenue.
In fact I think Sharpness Docks could be the new Monaco, what with the
climate shift etc.
Staffy
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