Govt moves to boost airport charges

Press, 21 May 1986, Page 11

Govt moves to boost airport charges

Christchurch air travellers will face increased costs if the Government insists on a private company to run the city’s airport.

The airport’s director, Mr Hugh McCarroll, believes any increase could be significant A private company with Government and council appointed board members, would have to pay tax at 48c in the dollar on its operating surplus and pay a dividend. • That means the airport would have less money for development during the next 20 years. To get that money it would have to borrow on the open market and then service that debt.

To offset that, airport charges would rise and be passed on to the air traveller through in-

creased ticket costs and departure tax or some other means, Mr McCarroll said.

The Christchurch City Council, which now runs the airport as a joint venture with the Government, . believes some changes to that set-up would provide more independence than the present system and more accountability than a new company.

The council has been talking with the Civil Aviation Division about the proposed new company structure since it was announced by the Minister, Mr Prebble, last year.

Airport restructuring was discussed in the Government Expenditure Reform statement released by the Minister of Finance, Mr Douglas, on

Monday. Reference to additional income of airports of $l6O million has Mr McCarroll worried that the Government might have its eye on the surpluses of the Christchurch and Auckland airport authorities.

Auckland’s surplus is $7O million; Christchurch’s between $5 million and $7 million. While the council’s restructuring alternative and the Government’s were not too far apart in principle, they were in practice, Mr McCarroll said.

A private company would certainly have more independence, with an autonomous board to make decisions.

Accountability to the people of Christchurch

would, however, be lost.

“People would have to deal with a large company, similar to Air New Zealand. At present they feel they can contact their councillor if they are unhappy about something at the airport. The council has run the airport as a service for these people. It is self-supporting and does not draw from rates. The last time the council gave the airport money was in 1960 when it and Civil Aviation put up $400,000 each towards the terminal,” Mr McCarroll said. The council looked upon the airport as a utility, one that should provide a service and enough to fund its own development. By comparison, the Government in its proposed changes looked at airports as businesses.