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KEY POINTS:
Winston Peters' criticism of a possible sale of Auckland Airport to a Dubai-based company has coincided with the start of negotiations for a free trade agreement, including investment, with a grouping of Arab states, including the United Arab Emirates.
The negotiations between New Zealand and the Gulf states
begin in Wellington today.
Mr Peters, the Minister of Foreign Affairs, has vocally opposed the possible $2.6 billion sale of a controlling stake in the airport to Dubai Aerospace Enterprise, saying it was difficult to see any benefit to this country in selling off a strategic asset to foreign ownership.
Mr Peters is not responsible for trade and is not a minister inside the Cabinet, but the two portfolios are closely related.
Trade with the region is growing rapidly at 10 per cent a year compared with New Zealand's 3.7 per cent overall export growth. Negotiations are expected to look for ways to make it easier to invest in New Zealand.
National Party trade spokesman Murray McCully said Mr Peters might send confusing messages to broader trade discussions if he was too vocal over foreign investment.
"There are potentially some legitimate public policy issues around the airport sale, and Mr Peters and anyone else is entitled to explore them. But it would be a very bad time for him to pursue those concerns in an inflammatory immoderate manner, given there are these trade discussions about that state. I am sure as Minister of Foreign Affairs there is no need for me to remind him of that."
Mr Peters left on a trip to Korea and the Philippines yesterday.
Minister of Trade Phil Goff said through a spokesman that the trade discussions would have no impact on the potential sale of the airport because any final agreement was some time away.
He said any investment provisions in the agreement could not cut across Overseas Investment Commission rules.
A senior Labour backbencher, Mark Gosche, has also publicly stated opposition to the sale of the airport into foreign hands. He said yesterday he was representing his electorate and had not sought permission from senior ministers.
He was unaware of the trade talks but said it would not have made a difference to his comments.
Asked if the comments regarding investment by a Dubai company could make for an uncomfortable start to negotiations, Mr McCully said he was sure the trade officials were "sophisticated enough to understand how Mr Peters operates and that there are some things best overlooked".
Mr Peters' stance on the airport has support from the public - in a UMR survey released yesterday 84 per cent of Aucklanders said they wanted the shares to stay in public ownership even if the sale price was attractive.
The survey of 750 adults was taken before the Dubai bid, but after the Canadian Pension Fund had indicated interest.
Mr Goff said it was the first time a delegation from the six states had come to this country and an agreement would give New Zealand a secure foothold in a rapidly growing region.
