Dear price over airport—M.P.

Press, 29 July 1986, Page 7

Dear price over airport—M.P.

By

TESSA WARD

South Islanders will pay a “dear price” if Government plans to corporatise Christchurch Airport go ahead, according to the National member of Parliament for Tauranga, Mr Winston Peters. He was speaking in. Christchurch yesterday before addressing union,. National Party and public meetings about Civil Aviation matters and general National Party policy. The government plans to sell Christchurch Airport assets to a private airport authority and to tax the authority’s profits would result in increased passenger fares and air freight charges for exporters, Mr Peters said. The National Party favoured commercial competition but the Govern-

ment move would amount to control of the airport changing from a Christchurch City Council monopoly to a private monopoly, he said. “Just when the Christchurch City Council becomes successful with its airport management it is going to suffer a corporate raiding exercise. If the council’s management is working so well why try to fix it? “The private companies managing the country’s airports will have to look after their own interests. With the burden of paying for airport assets and company taxes, some of these companies will have to forget any plans for upgrading the airports.” If the Government decided to go ahead with its airport management plans it should charge a fair price for airport assets and approach the taxation of airport company profits with caution. “The user pays principle is a sound one but we have got to keep our export products and transport infrastructure as competitive with our

overseas rivals as possible. Regional development is a serious consideration in dealing with transport matters such as this one. “Government moves to charge for airport assets is an artificial means of reducing the deficit. Free enterprise is about giving people options but Christchurch people and the council have had no options to choose from for future management of the airport.” The South Island economy was also likely to suffer if the proposed Brierleys - Ansett - Newmans domestic airline started. In particular, Mr Peters referred to the possible closing of Air New Zealand’s engineering maintenance workshop in Christchurch employing more than 750 people. “This is more than just a threat to Air New Zealand. There are no guarantees that the Newmans group will introduce new engineering facilities or jobs in Christchurch if it starts up a new domestic airline.”