Disused land sale a prudent approach

Asset sales are fast becoming two of the most contentious words in the election campaign.

Are they also destined to become controversial in Tauranga City?

Prime Minister John Key has put asset sales on the table should his National Government be returned later this month.

The Government plans to sell up to 49 per cent of Meridian, Genesis, Mighty River, Solid Energy and Air New Zealand but says Kiwis will be at the front of the queue for shares in these companies.

The sales process is expected to raise between $5 billion and $7 billion and will be used to reduce Government debt and the level of public borrowing.

The loss of control of these assets to overseas interests has been the greatest fear of opponents.

Now Tauranga City Council is considered reducing its debt by selling off millions of dollars worth of property that no longer serves a useful need.

The council met this week to examine in detail which of its $1.09 billion worth of properties could potentially be put on the market and which would be retained.

Valuable properties on the council books include the 7000sq m Zespri head office site on Maunganui Rd, old commercial buildings in Dive Crescent, a 2.7ha block of harbourfront land on Mirrielees Rd, between the Harbour Bridge and Sanford fisheries, and a 47ha farm bought by the council 13 years ago for a landfill at Mathers Rd, Waihi.

While some of the properties in question are already under the spotlight for sale, most will be considered as part of the debate on the council's 10-year plan for 2012-22.

It is difficult to imagine there will be the level of concern over council asset sales compared to what National proposes.

The council also has debt and borrowing issues but releasing land purchased or held for specific projects that is no longer required seems like a prudent approach.

In the business world good assets are performing assets.

Assets like disused land that can be sold to a commercial operator is a win for both sides.

With council borrowing levels high, this assets sales investigation is both logical and timely.