Salient. Official Newspaper of the Victoria University Students' Association. Vol 44 No. 9. May 4 1981
The Rennie Proposal
The Rennie Proposal
A new company would be formed ("Student Travel Bureau (1981) Ltd") with a paid up capital of $50,000. Rennie purposely made no mention of who would be the new company's shareholders. The new company would purchase all the assets — except the International Student Identity Card (ISIC) — from the old STB for $20,000. NZUSA would immediately pay its debt to the current STB — quoted by Rennie as $66,000; more on this later.
Currently STB has a long standing debt to the Australian Union of Students Travel Service (AUSTS) quoted as about $70,000. Under the Rennie Proposal, the new STI would immediately negotiate with AUSTS to eliminate this debt.
The new company would also be in a position to reduce its $130,000 overdraft with the Bank of New Zealand to apprximately $95,000 — which happens to also be the level of the overdraft guarantees held by the BNZ from four students associations ($40,000 in Victoria's case). Even more negotiations would be held with the BNZ regarding eventual repayment of this $95,000.
Lastly, the new company would arrange to hold the agency to sell the 1SIC, and pay the old company a royalty on each card sold. Being the backbone of STB's operation, this royalty would provide the capital year by year to repay debts. However, this aspect is dependent on successful negotiation for a price increase in the ISIC of an amount equivalent to the royalty.