Airport ‘success’ costs sought

Press, 17 March 1987, Page 1

Airport ‘success’ costs sought

The Christchurch Airport Authority will seek costs for its seemingly successful battle against the Government to retain $4.4 million in airport reserves. The authority plans to spend the money on immediate development. The money, which the council was told only yesterday it could keep, will be spent as part of the $11.2 million interim stage of the airport’s masterplan. Councillors at last evening’s Christchurch City Council meeting were delighted that the Government had changed its mind about taking the money. It was an abrupt aboutface for the Government. Only last Friday the council got a telephone call from the assistant secretary for transport,

Mr Brian Lynch, reminding it that pay-up day was Sunday. The council did not pay, opting to rely on its court action against the initial demand for the reserves. In light of yesterday’s announcement by the Minister of Civil Aviation, Mr Prebble, the council will withdraw that court action, but it will seek costs from the court for expenses incurred in fighting the Government raid on its funds. While most councillors were prepared last evening to accept Mr Prebble’s letter and his explanation that he had withdrawn the request for the $4.4 million “in order not to jeopardise” the discussions between the council as airport authority and Civil Avia-

tion officials on restructuring the airport as a company, Cr John Burn was not.

Mr Prebble had changed his mind, he said, because he had been able to get a considerable sum from the Auckland Airport authority on an agreed company proposal. The whole purpose of threatening airports with restructuring had been to get money for the Government.

The Christchurch Airport authority had been subjected to bullying as had the Auckland authority. Auckland had given way; Christchurch had not.

Cr David Close felt Mr Prebble should get a little more benefit of the doubt. The council had asked him to show a more reasonable attitude

towards Christchurch Airport’s future. He had done just that.

Mr Prebble’s letter showed that he was still keen for Christchurch to accept a company proposal.

The council wants an improved version of the present joint venture with an airport board made up half of Government appointees and half council appointees. Mr Prebble’s ' announcement yesterday did not change the belief that a company structure would increase airport charges. The airport committee chairman, Cr Morgan Fahey, said the council would withdraw its legal action on the advice of the Crown Law Office and City Solicitor. The council should seek costs from the

court, he argued, to cover having the hearing transferred to Auckland. Cr Burn agreed. So did a majority of councillors. The vote to pursue costs was carried by 11 votes to seven. The council voted to accept the letter “with pleasure.” Mr Prebble will be sent a letter stating the council’s pleasure at his change of heart. The council also sought regular reports on negotiations on restructuring. It was not a time for complacency, said Cr Vicki Buck, but an opportunity to see if an improved management structure for the airport could be achieved. The council had adopted a “self-righteous attitude” towards its running of the airport, “rightly so in view of the

threatened raid on funds.” Cr Fahey noted before the meeting that Mr Prebble’s letter gave no absolute assurances that the Government would not call on funds at some later stage. The development planned for the airport will include increasing the international terminal area about 40 per cent and significant changes to. the domestic terminal. The $4.4 million had been intended for immediate development in early 1985 but the council had delayed that spending at the request of the Ministry of Transport until the airport’s $300,000 masterplan was completed. Further report, page 3.