31 August 2007

Retain shares and maximise returns

Auckland City Council officers have recommended that council retain its airport shares and focus on maximising the returns for the benefit of residents and ratepayers.

On Monday the council will decide whether to amend its long-term plan which will allow it to restructure or transfer ownership of its 12.75 per cent shareholding in Auckland Airport.

The officers' report to council has recommended to amend the long-term plan but not to include selling all the shares as one of the options in the council's airport shares policy.

Officers highlighted in the report that there could be significant strategic and financial benefits from the council altering its shareholding in some way while retaining a significant interest in the airport.

The officers' report recommends that the council's policy allows for a range of ownership options provided that the council retains a minimum 10.05 per cent shareholding.

In preparing the report, officers considered a number of relevant factors including the key themes from public consultation.

Officers recommended that the council's policy includes a number of key objectives including maximising financial returns, limiting the control of a single investor and enhancing the strategic value of the council's investment.

Recent news that Dubai Aerospace may withdraw its bid for the airport has underpinned the importance of keeping the council's options open through the proposal to amend the long-term plan.

ENDS

© Scoop Media