Higher marina offer put on table

By BERNARD ORSMAN

The Government's successful bid of $52 million for Westhaven marina was topped by a higher offer that was later withdrawn.

Ports of Auckland chief executive Geoff Vazey yesterday said through a spokeswoman that after eight parties put in tenders when bids closed on March 31 an expression of interest more than the Government offer was received.

Mr Vazey said the unconditional nature of the Government's bid was very attractive.

"Before completing the discussions with the Government, the late party withdrew their expression of interest," Mr Vazey said.

A business source said the offer was made by an Australian company and was $2 million above the Government offer.

News of the higher offer follows revelations that some of Auckland's most powerful businesspeople provided crucial commercial information to help stop Westhaven falling into foreign hands.

Auckland City Mayor John Banks fed information to the committee of five Cabinet ministers, set up on March 29 to put in a last-minute bid.

Associate Finance Minister Trevor Mallard yesterday said the only information the Government received from Mr Banks was a telephone call after Cabinet on March 29, when he indicated the Auckland City Council bid would be roughly $10 million short to secure Westhaven.

Mr Mallard said after that call, three of the five Cabinet ministers decided to look at the Government's options. The next day the Government signed a confidentiality agreement with Ports of Auckland to enter into the tender process and a bid was put in the following day.

"We acted in good faith at all times," Mr Mallard said.