Aug 6, 2007

Parliament called on to stop airport sale

The Green Party will seek leave of the House to introduce new laws to keep Auckland International Airport in New Zealand hands following government statements in the New Zealand Herald today that it is opposed to foreign ownership of this strategic asset.

Green Party aviation spokesperson Sue Kedgley has drafted the Overseas Investment (Restriction on Foreign Ownership) member's bill to give the Government extra powers to enable it to stop a takeover bid by Dubai Aerospace.

"I am greatly heartened by comments by Trade Minister Phil Goff who said the Government's view was 'very much in line with that of 80 percent of the Auckland public' - namely that it does not want to see key public utilities such as the airport sold off," Ms Kedgley says.

"The Overseas Investment Act as it now stands is too permissive and gives few options for the Government to restrict or decline takeover bids of key strategic assets. Restrictions on selling key areas of land are there but not on New Zealand's key strategic businesses.

"So I am calling on all parties in Parliament to support my bid tomorrow to introduce a bill that would give additional powers to turn down a take-over bid of a key strategic asset if it was considered to be in the national interest."

Ms Kedgley is writing to the leaders of all parliamentary parties today to seek their support to enable her to introduce the bill.

Under the current act, sale of sensitive land to foreign owners must be approved by two government ministers but it is highly debatable if these provisions give the Government enough power to halt the take-over.

In the past six months, 96 percent of all applications for consent to the Overseas Investment Office were granted.

Ms Kedgley's bill inserts a new clause which specifies that no consent can be granted by the Overseas Investment Commission if it results in foreign owners gaining a controlling interest in a strategic asset such as the Auckland International Airport.

"When a key strategic asset, which is the country's main gateway is at stake, there should be no room for doubt," Ms Kedgley says. "It is an absurd situation; where our Government is unable to easily respond to the overwhelming public sentiment against the further sale of a key strategic asset, because it doesn't have adequate powers to take action."

ENDS

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