Wellington Airport’s runway extension will aid long-term economic growth

Property Council welcomes a new report into extending Wellington International Airport’s runway as strong evidence of a compelling business case for the project.

A cost-benefit analysis by Sapere Research Group states extending the runway is of national significance, and would create a net benefit of around $2 billion. $7 of economic benefit would be added for every dollar spent on the extension project.

Wellington Branch president Mike Cole says great cities need visionary and transformative projects such as the proposed runway extension, to ensure they are vibrant and liveable long into the future.

“More visitors to Wellington would have a flow on effect such as increased jobs and connections to America and Asia which are large trade markets. These would send powerful signals that Wellington Inc. is open for business.”

The report states the extension would also lower barriers to increased competition between airlines, which would increase efficiency of services and competitive pricing. It will increase the number of passengers using the airport by altering airline patronage patterns at the airport.

Property Council believes these changes would act as an enabler of long-term economic growth and drive social prosperity ensuring Wellington remains a dynamic and liveable city. This is beneficial for businesses and the wider community.

However, Property Council acknowledges that research results vary in their outcomes based on the methods used to collect and assess information.

“We understand that when assessing the benefits and impacts, different assumptions lead to different results in various economic analyses.

“We are open to all hypotheses and tests being run. But we think even if different assumptions lower the cost-benefit ratio, the evidence suggests it is more likely that the overall economic benefits will still be positive.

“We encourage Wellington Airport, the Wellington City Council and the Government to consider all reports, current and others that may be commissioned in the future, when making decisions on the proposed runway extension.

“We don’t want this issue to become a political football between the Government and the Council. We invite all parties to work collaboratively to find the most effective and efficient funding solution quickly so construction can start as soon as possible.”

ENDS

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