Council sees cash in marina

By ANNE BESTON and NZPA

The Auckland City Council expects to make about $2 million a year from running the Westhaven Marina, despite claims that the venture is too risky for a local body.

Act deputy leader Ken Shirley says the $54 million Westhaven deal - which will cost city ratepayers about $46 million and the country's taxpayers the rest - is "extreme folly".

"This move has ominous connotations, indicating that the Government may now be purchasing similar marine-related facilities around the country," he said yesterday.

"I am not confident that Government ownership will lead to good development in this prime coastal locality."

Auckland City's finance director, David Rankin, said the council did not have "a full picture of the on-going costs".

But the Herald understands predicted annual income from the marina businesses after costs is about $2 million.

The council can use a combination of three options to pay its share of the sale price.

It can sell some of its $254 million stake in Auckland International Airport, increase debt and repay it from marina income, rate increases or both, or lease the management contract for the marina businesses.

Announcing the deal yesterday at Westhaven with Auckland Mayor John Mr Banks and Associate Finance Minister Trevor Mallard, Prime Minister Helen Clark said it was unfortunate the Westhaven Marina had not been transferred to the Auckland City Council, rather than Ports of Auckland, in 1988.

She said the people and local authorities of Auckland had been up in arms since the Westhaven and Hobson West marinas were put on the market, "believing, as the Government does, that public ownership is critical".

The Government could have forced the ports company to transfer the marina to the city.

But it decided tendering for it was the best option.

The Government was always confident its tender would succeed, but the thought of it failing was "unthinkable", she said.

"So many people, like me, over so many years, have strolled around his place feeling that we owned it.

"I can remember strolling here with a boyfriend as long ago as 35 years ago and seeing plenty of other young couples, old couples, doing exactly the same."

The Herald understands eight bids, two from overseas, were made for the marina.

The ports company did not give a valuation of the 1400-berth marina when the sale was announced this year.

But the figure was believed to be about $50 million.

The purchase of the marinas was subject to conditions, the Prime Minister said.

Those included that the Crown and "other stakeholders" be consulted over development on the sites.

Mr Mallard said the people of Auckland did not want the marina "covered in five or six-storey apartments or other such arrangements".

Helen Clark said the agreement the Government had been able to negotiate would ensure the marina would always be publicly owned."

Royal New Zealand Yacht Squadron commodore Bill Endean welcomed the marina purchase even though the squadron, other yacht clubs and the marina users' association had also put in a bid.

Mr Endean said he hoped the charitable trust set up when the Westhaven groups decided to put in a bid might get the job of helping run the marina.

"I would be concerned if the boating community was excluded from management of the marina," he said.