Airport’s potential for expert’s study?

Press, 28 October 1982, Page 18

Airport’s potential for expert’s study?

A study of Christchurch Airport’s traffic growth potential, both in passengers and freight, may be proposed to the Christchurch City Council next month.

Special rating consideration for the airport, sited in Paparua County, may also be sought.

Cr Rex Lester, chairman of the public utilities committee, has said that it was obvious the city needed an expert who could marshal facts about the airport’s tourism and international freight potential, especially after the present runway extension was completed. A completed study could be the data base for approaches to the Government on policies that put the South Island airport at a competitive disadvantage. Last year, use of the airport was down in three categories—domestic passengers, domestic freight, and international passengers—but up 18.2 per cent in the amount of international freight flown out of the city. In the year to March. 34,909 fewer domestic passengers used the airport, and 9875 fewer ihternational passengers came through the terminal.

Domestic freight was down 911 tonnes, from 39,675 tonnes. International freight was up 1462 tonnes, from 8055 to 9517 tonnes. Two American airlines, Pan American a#d Continental, have co-terminal rights in New Zealand, which means they can use both Auckland and Christchurch

airports if they want. So far, they have not touched down in both islands.

Such rights are also sought by South Island interests for Singapore Airlines, but that carrier’s “balance of benefits” agreement with the New Zealand Government would have to be renegotiated to allow an extension.

Cr M. R. Carter said there was no growth in the number of tourists coming to New Zealand from North America, but there was growth in the Asian and Japanese market.

Most tourists do not travel to the South Island on their short tour packages. The Mayor of Christchurch, Sir Hamish Hay, said that the head of a top Japanese tour company had written telling him that demand for the South Island as a tourist destination would undoubtedly pick up as soon as direct international flights to Christchurch were started.

Special airport rating consideration may be sought from the Paparua County because of the likely increase in the airport's rates bill after a recent revaluation of county property.

Cr Lester said it seemed unjust that the airport should pay so much in rates when it received so little in return from the county.

Sir Hamish said it could be argued that county ratepayers were “almost bding subsidised by airport development work.” The airport is the county’s largest

ratepayer. This year, the City Council has paid about $75,000 in rates for the airport, and airport tenants have paid another $BO,OOO.

Next year, the council might be paying about $213,000 in rates. Tenants could expect a similar increase because of the fiveyearly revaluation. “A rating demand such as can be expected in 1983 not only siphons off funds directly needed for airport capital works projects such as rOading and runways,” said Cr Lester’s report. It also placed a. greater burden on . airport tenants whose rates were not included in their council rental.

The airport pays the cost of building and maintaining its roads. Water, pow'er, and rubbish collection services are supplied by the City Council.

The Valuation Department has placed a land and improvements value of $46,966,000 on the airport in the latest review.

Although the average value increase for Paparua County rural districts has risen 205 per cent, the increase for the airport assessment’s rateable portion is 342 per cent. That extra 137 per cent will mean the steep rise in rates for the airport. “Our proportion has gone up at a considerably higher rate,” said Sir Hamish. The council will also study whether to lodge an appeal against the Valuation Department’s figure.