Editorial: Is now the best time to sell land?

Tauranga City Council wants to sell $18m of land belonging to the people of this city.

The council says the land is under-utilised or no longer required.

Some are small sections, of use perhaps only to those who own neighbouring properties.

Others are steep parcels of bushland, or reserves which have eventually become hemmed in by development.

Some were once required for drainage or landfills, but their moment has passed. They are now blocks, of varying shapes and size, which appear like scattered pebbles on a map of this city. The plan to hang the For Sale signs is up for community consultation. Submissions close April 20.

The plan covers the potential sale of 40 properties and a partial sale or joint venture for two other properties.

The big question is why. If the answer were money, that'd be understandable.

Of course something needs to be done to ensure this bustling city lives within its means.

Tauranga City has one of the highest council debt levels in the country. In January, this newspaper reported the council was on track to finish the current financial year with about $380 million of debt.

This has resonances to the national political scene where asset sales are a contentious issue.

On March 8, The Mixed Ownership Model Bill passed its first reading 61 to 60.

State Services Minister Tony Ryall said: "This legislation and debate is about debt. It is not about the Treaty of Waitangi. It is not about foreign ownership. It is not about other considerations. It is about controlling our nation's debt".

Labour calls National's asset-sale aspirations a "sugar-hit". The Greens say it is unjust to put assets owned by all New Zealanders into the hands of the wealthy.

But here's the interesting thing: Tauranga City Council isn't crying poor.

Our report today reveals proceeds from the sales will either be invested in other reserves or used to reduce the council's debt.

So, this money is not desperately needed. In fact, the council's not even certain how it would spend the cash. Sure, these parcels of land may have limited value as far as council operations are concerned, but is there not an argument for sitting tight while the real estate market recovers?

Let's keep these odd little parcels - teeny blocks, landfill farms, steep bush and carparks, they may be - aside as an ace to play when the going gets really tough.