KEY POINTS:
The centre-right Citizens & Ratepayers Now bloc on Auckland City Council is not ruling out selling a "few" airport shares for a large financial windfall.
C&R Now finance spokesman Doug Armstrong said yesterday the ticket was taking notice of the "vast majority of public opinion" and would not
vote to sell the council's remaining 12.75 per cent holding in the airport.
But Mr Armstrong, who was the architect of the 2002 sale of half of the council's airport shares, said the ticket would consider options for a new ownership structure.
"Some of those options may involve selling a few [shares] to secure a position," said Mr Armstrong.
He gave as an example selling down from 12.5 per cent to 12.4 per cent, or "11.6 per cent or something" if there was a huge financial benefit.
More than 90 per cent of submitters on the future of Auckland City's shares in Auckland Airport are opposed to selling the shares.
A Herald inspection of the 611 submissions found about 560 people opposed selling the shares, compared with about 42 who supported a sale. The rest were neutral.
Councillors will digest the submissions before deciding on September 3 whether to amend their 10-year budget to allow the city's 12.75 per cent shareholding to be sold in full or part, or put in a new ownership structure.
Among those supporting the sale is former C&R Now councillor Williams Cairns, who voted to sell shares in 2002.
Mr Cairns said the remaining shares "must be sold" to pay for stormwater, footpaths and public transport.
Another C&R Now politician, Michael Barnett, wearing his hat as Auckland Chamber of Commerce chief executive, is also pushing for selling the shares.
The chamber believes the $500 million to $550 million proceeds should go into a special capital fund.
Among those opposed to selling the shares are former Court of Appeal judge Sir Duncan McMullin and James Hill, former managing partner of accounting firm KPMG.
Mr Hill said the sale of half the council's airport shares for $190 million was a poor move in light of the subsequent rise in the value of the shares.
"This is a virtual monopoly with considerable future enhancements ... It is too strategic to sell and offers considerable value as a long-term investment.
"The last sale was a mistake. Do not repeat such mistakes," Mr Hill said.
With the centre-left City Vision ticket opposed to selling shares and C&R Now acknowledging public opinion, there is virtually no chance the shares will be sold as part of a $2.6 billion takeover bid of the airport by Dubai Aerospace Enterprise.
However, Mayor Dick Hubbard and councillors are keeping an open mind about putting the shares in a new ownership structure in the event of other offers coming forward.
Mr Hubbard, who has advocated selling the shares in the past, said yesterday he was keeping an open mind.
"There may still be some other players in the market and I don't want to make any inappropriate comments that could prejudice anything that could be to the council's advantage."
But he said he had reservations about the possibility of majority ownership by one party, particularly in the case of the Dubai bid where the same chairman headed the company making the bid, Dubai Aerospace Enterprise, and the Emirates airline. The Dubai Government also had money in both parties.
"There could well be a conflict of interest between the requirements of Air New Zealand and the requirements of a Dubai-based majority owner."
Mr Hubbard is meeting Manukau Mayor Sir Barry Curtis today to discuss the Dubai offer.
