Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Council receives & invests airport share proceed


20 December 2002

Council receives and invests airport share sale proceeds

Auckland City Council has received the $185.1 million net proceeds from the sale of half its shareholding in Auckland International Airport Limited.

The chairperson of the council’s Finance and Corporate Business Committee, Councillor Douglas Armstrong, says the $185.1 million has already been “ring-fenced” and set aside for the purpose of moving towards a zero net debt position. This amount is the sale proceeds of $190.8 million minus the costs of sale.

The net sales proceeds have been initially invested in short to medium term deposits and investments, as follows:

- $36.2 million has been invested in overnight bank deposits. These proceeds, plus the current sinking fund of $11.3 million, will be deposited with a bank, and used to retire Auckland City’s remaining local authority stock when it matures.
- $68.2 million has been invested in floating rate investments, which will be rolled over until August 2006, and used to offset the Auckland City bonds maturing in August 2006.
- The balance has been invested in overnight deposits, bank bills, treasury bills and high quality corporate commercial paper, with maturities ranging from 30 to 90 days.

After repayment of debt, the remaining $80.7 million, together with the capital repayment proceeds of $54 million and the $83 million proceeds from the sale of the council’s pensioner and residential housing, will be ring-fenced and set aside to fund planned long and short-term commitments, including the Indoor Arena and Britomart project.

“The council has said from the start that we were in this process to eliminate debt. We have been adamant the share sale funds would not be squandered. This investment policy clearly demonstrates that we are prudently managing the funds we have received,” says Councillor Armstrong.


Ref: SL/PH

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Tourism’s Endless Sense Of Grievance

Sad that a once in a century pandemic should have come along before the government had a clearly thought out plan for rescuing all the firms and saving all the jobs in the tourism sector. Sad that the government now looks like it was making up the criteria for support as it went along. But guess what? To some extent, they were. Possibly because in the modern era, a pandemic had never before caused international travel to evaporate almost overnight... More>>


PREFU: Economy Doing Better Than Forecast

The Pre-election Economic and Fiscal Update released today shows that the near-term economic recovery has been stronger than the Treasury and many economists predicted at the May Budget, as the economy bounced back strongly out of lockdown... More>>


PM Statement: Cabinet COVID-19 Alert Level Review

Takiri mai te ata, ka ao, ka ao, ka awatea, tihei mauriora! Tātou katoa ngā iwi o Aotearoa, tēnā koutou! Tēnā tātou e whakanuia ana i te wiki nei, te wiki o te reo Māori Greeting to you all from Otepoti, Dunedin. This week is the Māori ... More>>


Greens: $297m Fund To Support Sustainable Food And Farming

The Green Party has released its Farming for the Future Plan, including a $297m fund to support farmers and growers to transition to climate-friendly practices. The plan will: · Improve how we look after our land and water, with a levy on the ... More>>


National: Plan To Restore NZ’s Prosperity

National’s Economic and Fiscal Plan carefully balances the need to invest in infrastructure and core public services while also reducing tax pressure on Kiwi families and businesses. National Leader Judith Collins and Finance spokesperson Paul Goldsmith unveiled National’s ... More>>


NZ First: Party List

New Zealand First has a proven twenty-seven-year history of bringing balance and common sense to our government. Amid the continued setbacks of COVID-19 restrictions, New Zealand First has once again sustained its profile by selecting a strong team ... More>>

Election: Arriving Travellers In Isolation To Be Able To Vote By Telephone

Up to 5,000 people in managed isolation or quarantine will be able to vote by telephone in the general election and referendums after an amendment to electoral regulations last week. Chief Electoral Officer Alicia Wright says the Electoral Commission sought ... More>>

National: Investing In Our Children’s Future

A National Government will prioritise lifting achievement for all New Zealand children, no matter their background or ability, National Party Leader Judith Collins and National’s Education spokesperson Nicola Willis say. “Parents just want what’s best for ... More>>

Police: Numerous Arrests Following Investigation Into Historical Offending At Auckland School

Detective Senior Sergeant Geoff Baber, Auckland City Police: Police have made six arrests as part of an operation investigating historical offending at Dilworth School. Auckland City Criminal Investigation Branch have been investigating since a complaint ... More>>






InfoPages News Channels