KEY POINTS:
The Auckland City Council will almost certainly put its stake in Auckland Airport out of the reach of would-be buyers today because of overwhelming public opposition to selling the shares.
The two main political groups yesterday indicated they would vote against amending the council's 10-year financial plan, which
must be changed before the city can sell any shares or act on any approaches.
The decision is the latest twist in the airport sale saga, in which a $2.6 billion offer by Dubai Aerospace Enterprise for a majority stake is at the brink of collapse and uncertainty surrounds other offers.
The vote on amending the plan will be taken at a council meeting tonight.
It could also scupper a reported New Zealand-Canadian bid for a minority stake.
According to the Sunday Star-Times, the Canadian Government pension fund and New Zealand's Infratil could be looking for backing from the Auckland and Manukau city councils, which own nearly 23 per cent of the airport between them.
Auckland City councillors have been backpedalling on the possible sale of the city's shares since public consultation showed 91.3 per cent of 614 submitters opposed selling them and 90.8 per cent were against even reducing the council's stake.
Despite this opposition, council officers suggested councillors should consider a partial sale, reducing the council's 12.75 per stake to a minimum of 10.05 per cent.
A report issued on Friday with this proposal and a proposal to amend the financial plan to take advantage of approaches became a political hot potato at the weekend.
Six of the nine left-leaning City Vision-Labour councillors yesterday attended a hastily convened meeting and decided to oppose a partial sale and amending the plan.
City Vision co-leader Vern Walsh said ratepayers had consistently opposed the sale of shares, but were ignored by Mayor John Banks and Citizens and Ratepayers councillors in 2002 when they sold half the city's stake for $190.8 million.
Amending the plan would make it easier for future C&R-dominated councils to ignore the people again, he said.
C&R leader Scott Milne said City Vision was looking for a lifeline to sustain its chances in the local body elections. "We are not going to give it to them."
He could not see the six centre-right C&R councillors voting for a partial sale or a change to the financial plan after listening to the mood of ratepayers.
Mr Milne said there was nothing to stop potential buyers coming back with offers for the airport shares, but the council would have to consult ratepayers again.
Council officers have said the present ownership structure for the shares should be amended so the council could act swiftly on offers that gave better financial returns and kept a significant holding in the airport.
Finance general manager Andrew McKenzie said a preliminary analysis of one approach in May showed the council could have kept its 12.75 per cent stake and increased returns by an average of $15 million a year between next year and 2016.
Mayor Dick Hubbard did not know last night of plans by City Vision-Labour and C&R - which between them hold 15 of the 20 council votes - to vote against amending the financial plan.
He said he was reserving his position until he had received expert advice on the consequences of doing nothing with the shares, and the extent to which this could weaken the council's position.
"It's hugely important we don't inadvertently throw away 20, 30 or 100 million dollars or decrease our negotiating position and strategic strengths as a result of political opportunism."