Airport fund report

Press, 17 June 1980, Page 6

Airport fund report

• -An independent accounting report to help fight the airport funds issue will be sought by the Christchurch City. Council. Councillors last evening agreed to get financial advice from Dr G. B. Battersby, a . consulting chartered accountant. His work should include a close study of airport accounts in Auckland and Wellington, to determine therextent of Government investment there. The City Council, with other South Island interests, is trying to get a new Civil Aviation regulations amendment revoked. From July .1, ■ that amendment will divert about $575,000 a year away from Christchurch Airport

and channel it indirectly to Wellington Airport. The Mayor (Mr Hamish Hay) said the Government’s return on investment policy had to be argued from an accounting point of view. He did not accept “in any shape or . form” comments by the Minister of Civil Aviation (Mr McLachlan) or the Minister of Housing (Mr Quigley) on the issue at a . special meeting earlier this month. “The Government was entitled to make this change — it should not have , done it',” said Cr D. F.Caygill. “In the end; we will win because of South Island solidarity.” Cr .N. G. Hattaway said the change “rankles with me,” and it rankled with all South Island residents.

“I have never been as worked up over anything as this,” he said. The Government had "used a big stick” to get what it wanted, instead of discussing the proposed change. If the 10 per cent return on capital was a logical policy, it should be based on the airport’s present valuation, Sir Terence McCombs said.

If the same proportion of funds had been taken from Auckland, “I think the roof would fall on the present Government,” he said. “This can only be described as Government greed,” said Cr P. J. R. Skellerup. “It leaves me filled with shame that the Government could sink so low.”