By BERNARD ORSMAN
The Auckland City Council last night took a "final decision" on its Auckland Airport shares, voting 11-8 to keep its 25.8 per cent shareholding.
Extensive lobbying by pro-sale councillors swayed failed to sway all but one of a key group of Citizens and Ratepayers' councillors, who remained concerned about what would happen with the proceeds.
Citizens and Ratepayers' leader Doug Astley was the only councillor to change his mind since the council voted 12-8 in October to keep the shares.
The council has been dithering for the past year over what to do with its cornerstone shareholding, which could have fetched $300 million.
The vote was a blow for Mayor Christine Fletcher, who dearly wanted to spend the money on public transport.
"The family silver I want to leave my children is a well-functioning public transport system."
Mrs Fletcher said the cost of doing something about traffic congestion was well in excess of the $940 million held by Infrastructure Auckland for roading and stormwater works.
Deputy Mayor and City Vision leader Dr Bruce Hucker said Auckland Airport was a strategic asset which had to be seen as part of an integrated transport system for Auckland.
By holding on to the shares, he said, the council was able to ensure that the airport acted in a way that was socially and environmentally responsible.
Furthermore, Dr Hucker said that if the shares were sold it would take pressure off regional bodies and central government to contribute towards major infrastructural projects.
He told the New Zealand Herald that if the sale had gone ahead pressure would have built up for a sale of the public shareholding in Ports of Auckland.
Pro-sale councillor Gray Bartlett said the strategic plan review clearly indicated the public wanted to sell the shares.
Sixty per cent favoured selling them and 40 per cent wanted to keep them.
In a report prepared for councillors, Treasury manager Glennis Christie recommended selling the shares, repaying the council's $100 million debt and setting up a community asset fund.
She said the fund could provide long-term capital expenditure for projects such as public transport and an indoor arena without resorting to debt.
"Provided the proceeds are in the order of $300 million and the debt is eliminated, council will be an overall winner in financial terms," she said.
Auckland Airport's chief executive, John Goulter, said after the vote that the issue would probably continue to come back on the council agenda, which was not something investors at large would see as a positive.
The Employers and Manufacturers Association (Northern) yesterday expressed dismay at the council's inability to reach agreement on selling the shares and a sound policy of what to do with the proceeds.
The chief executive, Alasdair Thompson, said the proceeds should go to paying off debt and investing in infrastructure.
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