Media Release
5 September 2007

Council Plan Amendment Recommends Retain Airport Shares

Consultation with community to begin mid-September

Manukau City Council is to consult with its residents on an amendment to its Long-term Council Community Plan (long-term plan) which recommends that the council keep its 10.05 per cent shareholding in Auckland International Airport Limited (AIAL).

Because the council wishes to retain its airport shares, it proposes adopting a new policy with objectives to measure any current or future proposals that might be put forward to airport shareholders.

“The airport is a strategic asset for Manukau, the Auckland region and for the country that has substantial growth and development opportunities. Given the significant interest it is attracting, the current ownership structure is unlikely to be sustainable in the long term,” Manukau Mayor Sir Barry Curtis says.

“Any proposals, now or in the future, need to be assessed against sound objectives that will provide us with the flexibility to secure the best results possible from our shareholding and to manage it in the best interests of the city in light of this changed environment,” Sir Barry says.

“However, we need to hear from our community on our recommendation. When we have considered the community’s views, the new council will then decide whether or not to amend the long-term plan to accommodate the objectives.“

The consultation process will start on 14 September 2007, with submissions closing on 19 October, 2007.

The proposed objectives which would be used to assess and evaluate present and future options for the airport ownership structure are:
a) Strategic:
• the council should maintain its present level of ownership
• the company must be committed to, and able to deliver on, the development of the airport
• The company will not pursue strategies that risk dilution of the council’s shareholding
b) Financial:
• generate improved financial results (increase future dividends and possibly free up capital) for the council
c) Commercial:
• there should be no single controlling shareholder (a controlling shareholder would probably have more than 30 to 35% of the shares)
• the council should be able to appoint a Board member, (appointed for his or her ability to contribute to the forward direction and governance of the airport company and in line with the council’s policy the director would not be a councillor or officer of the council)
d) Liquidity:
• the company should be listed on the New Zealand Stock Exchange (NZX)
e) Overseas Ownership:
• no single overseas owner with a controlling interest (there will of course be a number of smaller overseas shareholders).

A full Statement of Proposal and a summary will be available from the council’s website, www.manukau.govt.nz, from its customer centre and libraries. Residents will be able to make submissions on-line or through the council’s 23 September issue of Manukau Matters, where there the Statement of Proposal will be summarised.

ENDS

© Scoop Media