Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Suspensory loan for Invercargill Airport

28 July 2005

Suspensory loan for Invercargill Airport

The government has approved a suspensory loan of $1.5 million to enable Invercargill Airport to gear up for international flights.

Announcing the decision today, Finance Minister Michael Cullen said the funding would go toward buying biosecurity and aviation security equipment, including luggage x-ray facilities.

“I recognise that this creates a precedent for other regional airports wanting to move up to international status and do not rule out providing them with similar assistance, other conditions being equal,” Dr Cullen said.

“The money will become available if and when Invercargill persuades an international airline to provide regular, scheduled services to the city. The airport has yet to secure this but is in discussions with both Pacific Blue and Qantas.”

Dr Cullen said Invercargill was further advanced in its international ambitions than other areas. It already received diverted flights when weather conditions closed Queenstown Airport and was in the process of extending its runway; a $4 million project being financed by Invercargill ratepayers.

Under the border security funding formula announced in April, biosecurity and customs are paid by the government and aviation security costs by the travelling public through a uniform $9.31 charge.

New international airports, however, have to carry their own costs for a probationary period of one year. After that, they will be brought into the funding regime provided they can meet the threshold of 9000 departing passengers a year.

Dr Cullen said the loan to Invercargill was for three years and would be repayable unless it met these passenger volumes.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Perils Of Using PPPs To Meet Auckland’s Roading Needs

More than once, the coalition government has ruled out using public private partnerships (PPPs) to fund the country’s infrastructure needs in health and education – apparently private profiteering in those areas is recognised as being undesirable. Not the same story though with transport, and the reasons for that differential treatment are mystifying. Earlier today, Transport Minister Phil Twyford announced that one of two new roads that the government would be co-financing would be a PPP – namely, the Penlink project that will link the northern motorway to the Whangaparaoa Peninsula.



HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say - Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>


Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>


Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>


PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in Europe for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>


Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>


Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>





Featured InfoPages