KEY POINTS:
The $2.6 billion takeover of Auckland Airport by a Dubai company suffered a huge setback yesterday when Trade Minister Phil Goff said the Government agreed with local opposition to the deal.
Mr Goff said he had no problem with the company making the offer, Dubai Aerospace Enterprise.
New Zealand had close relations with the United Arab Emirates, whose Government is a shareholder in the company.
But Mr Goff said: "The Government's view is very much in line with that of 80 per cent of the Auckland public.
"They don't want to see key public utilities - the airport and the ports authority, the shares in those bodies - sold off."
Mr Goff's comments are the strongest indication yet that the Government would have difficulty approving the Dubai bid - if it reached the Beehive for final approval.
A spokeswoman for the Prime Minister said Helen Clark had no problem with Mr Goff's comments.
She had made a similar comment at a post-Cabinet press conference two weeks ago.
Helen Clark said then that the Auckland and Manukau city councils' 22.8 per cent shareholding would generate substantial debate at October's local body elections.
"In general people don't like their public assets privatised, so I think that's probably where it will focus," she said.
Under the Overseas Investment Act, the sale of "sensitive" land to foreign owners must be approved by two Government ministers.
Deputy Prime Minister Michael Cullen said any decision on Auckland Airport would be made by Associate Finance Minister Trevor Mallard and Land Information Minister David Parker.
Dr Cullen said they could take into account several factors.
Mr Goff was speaking at the launch of the centre-left City Vision ticket for October's local body elections.
To huge applause, he told the Labour-Green-Alliance-community independent ticket that the question of public ownership of key assets had been handed to "us" on a plate.
"There is no doubt how Aucklanders feel about their airport ... They want it kept in public ownership."
A Herald-DigiPoll survey of 400 Auckland City residents found 80.9 per cent against the Dubai bid and 13.9 per cent in favour.
Dubai Aerospace faces an uphill battle to get 75 per cent approval from shareholders because of the Auckland and Manukau councils' combined shareholding.
Shareholders will not be asked to vote on the takeover bid until November.
Manukau's political candidates are vowing to keep their council's shares and Auckland City candidates are rapidly coming to the same conclusion, so the deal could collapse before it reaches the point of requiring Government approval.
Even former and would-be mayor John Banks, who sold half Auckland City's airport shares in 2002, has told voters he would not sell the rest "if the people of Auckland don't want to sell the airport shares".
Mayor Dick Hubbard is getting cold feet about his previous support for selling the shares.
Foreign Minister Winston Peters, whose New Zealand First Party strongly opposes the Dubai deal, has raised the stakes by linking national security issues to the bid.
And the Green Party has drafted legislation to stop the sale of a controlling stake in the airport to foreign owners.
The Dubai bid, worth $3.80 a share, is for a controlling stake of 51 to 60 per cent.
WHAT NEXT
* Auckland City and Manukau consult on sale of airport shares.
* October local body elections give ratepayers a chance to question candidates on selling shares.
* Shareholders vote on the offer bid in November.
* The Government makes the final decision on the takeover bid - if it gets to this stage.
