Queenstown Airport share-sale controversy claims top scalp

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The row over the sale of Queenstown Airport shares to Auckland International Airport claimed its first victim yesterday when Queenstown's chairman Mark Taylor "resigned".

Taylor's announcement made it clear he had been pushed and attention is now focused on fellow board member Murray Valentine, who said his future was a "discussion between me and the council".

Both men were involved in the controversial alliance between Queenstown and Auckland airports, publicly announced in July. In his statement, Taylor announced his resignation was effective immediately - indicating the Queenstown Lakes District Council has bowed to public pressure.

He said a resolution was passed at an extraordinary council meeting to remove him from the board if he did not "agree" to resign within seven days. "Accordingly, I have tendered my resignation to the company, effective immediately."

Taylor said he had known for "a couple of weeks" his future with the board was in doubt, but was "surprised" when he was officially told last Friday he was "no longer required".

It is understood three recent meetings of the council have been to discuss Taylor's future - there were extraordinary council meetings held on March 24, and April 8, with a final public-excluded session of the council held at the end of its ordinary meeting in Queenstown on Tuesday.

The airport deal, which saw Queenstown create and sell a 24.99 per cent new shareholding to Auckland for $27.7 million will be looked at by the High Court at a hearing scheduled for next month.

Air New Zealand and the self-appointed Queenstown Community Strategic Asset Group - which formed soon after the airport companies announced their strategic alliance - filed independent, but related, applications in the High Court at Invercargill, both seeking a judicial review.

The council has spent more than $400,000 to date on legal fees and litigation costs as a result.

And while the strategic asset group has made no secret of its desire to see the resignations of the board at large, when contacted yesterday it issued a one sentence statement: "Another step in the right direction, no further comment at this stage".

- Otago Daily Times