Auckland for sale: Councillors push on

Auckland for sale. Photo / iStock

• Councillors discuss privatisation programme
• Port and airport shares emerge as top contenders for sale
• No appetite for selling golf courses, parks, social housing, water assets
• Critics call programme a rerun of Rogernomics
• Supporters want more work done on options

Auckland councillors are pushing ahead with a privatisation programme but are not of a mind to sell golf courses, parks, social housing and water services.

That leaves a partial or full sale of Auckland Airport and Ports of Auckland as the big ticket items, which outgoing Mayor Len Brown signalled would be a hot political issue for mayoral and council candidates at next year's local body elections.

Already, Labour MP Phil Goff, widely expected to announce on Sunday he is standing for the mayoralty, has ruled out selling port and airport shares. City-right mayoral candidate Mark Thomas has given qualified support to selling shares in the two assets.

A no-holds-barred review of council assets by two advisory firms, Cameron Partners and EY, said the council could raise billions of dollars by selling a range of assets from golf courses to the port and airport shares, respectively valued at $1.079 billion and $1.4 billion.

Other sale options include part of Watercare Services, valued at $8.5 billion, and rezoning 5 per cent of park land for housing to raise $2.25 billion.

The advisory firms gave a presentation to the finance and performance committee today, explaining their thinking for alternative sources of funding.

EY's Paul Money said there were plenty of exciting opportunities to release capital without reducing core services to residents, while Cameron Partners's Hugo Ellis said there was no "free lunch" and the council could not stick with the status quo and invest in extra infrastructure.

The sales pitch found favour with right-leaning councillors like Cameron Brewer, George Wood and Dick Quax as an alternative to increasing rates and debt.

Mr Brewer welcomed a committee resolution for officers to do more work around the airport and port shares, as well as council buildings, carparks and ongoing operational efficiencies.

But Mr Brewer and other councillors made it clear they were not keen on selling community assets like parks, golf courses and social housing, or privatising Watercare.

Councillor Chris Darby called the work of the two advisory firms a repeat of Rogernomics, costing $490,000 for "what we already know".

Councillor Mike Lee said when he was elected to the Auckland Regional Council in 1992 financial advisers Fay Richwhite came along with a glossy book entitled 'A Time to Sell', proposing to sell port shares for $200 million.

He said the sale failed by one vote and since then the shares had provided a steady funding stream of just under $2 billion for transport and other infrastructure.

Selling assets like the port shares, Mr Lee said, would destroy the council's main source of alternative revenue to rates.

In the past five years the port and airport shares have earned $391.6 million for council.
Councillors will next discuss the issues in February.

See the review on council assets here: