AUCKLAND CITY COUNCIL

MEDIA RELEASE

21 August 2007

Airport submissions analysed

Auckland City Council has completed its analysis of the more than 600 submissions on the future of its stake in Auckland Airport.

Of the people making submissions, about 90 per cent were opposed to both selling the shares and to decreasing the council’s shareholding in the airport.

However, there is some interest in restructuring the council’s shareholding and about half of the submitters supported increasing the council’s stake.

Finance and Corporate Business Committee chairperson Councillor Vern Walsh says the council will carefully consider all the submissions before making a decision.

“We recognise the public’s concerns about the future ownership of the airport and we want to ensure any decision is in the best long-term interests of residents and ratepayers.”

Mr Walsh says it is widely acknowledged that the current returns from the airport are too low.

“Historically the dividend from the airport has only averaged around 4 per cent. We are considering potential approaches that might improve the return on our investment which will have a direct impact on the level of rates that our residents are paying.”

Mr Walsh says it’s important that the public understands that the council is only consulting at this stage on changing its long-term plan, and has not made any decisions on the future of its shareholding.

“We will consider both the results of the consultation and a number of relevant factors before we make any decision.”

The council will hear oral submissions on Monday, after which it will decide whether to amend its long-term plan on 3 September. The council can only consider proposals to restructure or transfer ownership of its 12.75 per cent shareholding in the airport if the decision is included in its long-term plan.

Ends

© Scoop Media