MEDIA RELEASE

30 June 2005

Airport share dividends gives wings to major projects

Auckland City Council will be receiving a financial windfall to the value of $18.7 million from its Auckland Airport shares, announced today.

Councillor Vern Walsh, chairperson of Auckland City’s Finance and Corporate Business Committee, says the special dividend from the shares is very welcome at this time.

“Auckland City has nearly completed its budgeting process for the year and although we will be receiving extra revenue from a 7 per cent real rates increase there are still many projects around the city that need an extra funding boost.

“There are always plenty of requests for funding and over the past couple of months we have been faced with some major costs which will need to be addressed over the next few years, particularly the unexpected repairs required for the long term future of the Civic underground car park.

“It is important that this special dividend is used to fund major projects that benefit all Aucklanders. To this end, the money will be placed in Auckland City’s strategic asset fund, which can only be used to fund major new assets of strategic benefit to the city.

This allows us to better plan for key infrastructure that Auckland City needs to remain a great place to live and work as the city grows.”

Mayor of Auckland City, Dick Hubbard, praised the Auckland International Airport Limited board and management for its ongoing good performance.

“The airport continues to be an excellent investment for Auckland City,” he said.

“The receipt of this special dividend is proof that we are making sound financial decisions on behalf of our residents and ratepayers.”

Auckland City owns 12.8 per cent of the Auckland International Airport Limited shares.

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