Airport shares held by all despite previous sell-offs

Auckland City and Manukau councils will have to transfer ownership of shares in Auckland Airport with a combined value of $474 million to the rest of Auckland under the super-city model.

The shares would be owned by all Aucklanders, even though the Waitakere, North Shore and Franklin councils sold their airport shares in 1998 and 1999.

The Royal Commission of Inquiry on Auckland Governance has recommended that the super Auckland council take over the assets and liabilities of the existing eight councils. There will be no payments involved.

In other ownership transfers, North Shore City Council will have to hand over its Rosedale wastewater plant to a new regionwide water company and Auckland City's ageing stormwater system will become a costly problem for ratepayers from Wellsford to Pokeno.

The report of the commission acknowledges transferring all assets to the Auckland council will involve some redistribution between ratepayers, but says trying to rectify any real or apparent inequities would be difficult and inconsistent with the goal of moving to a unified funding arrangement.

The report does not exclude the possibility of setting a targeted rate to address any significant inequities.

Manukau Mayor Len Brown said the community was concerned about what happened to its assets, including a 10.1 per cent stake in Auckland Airport.

"Our community has had a very strong culture embedded in this council of the long-term holding of public assets ... There will be no weak knees around the ownership of public assets," he said.

Mr Brown said "quintessential policies" of free entry to swimming pools, libraries and recreation centre policies were at huge risk.

Auckland City finance committee chairman Doug Armstrong instinctively had concerns about handing over the council's airport shares to people who had sold their shares, but said adopting a mercenary approach would not help the bigger picture.

North Shore Mayor Andrew Williams said ratepayers had invested heavily over the last decade at Rosedale - $104 million upgrading the plant and a further $116 million on a new tunnel from the plant out to sea - to secure cleaner beaches and waterways.

"Ratepayers have paid through the nose for a decade or more for (Rosedale) and they will spend the next decade paying through the nose for Auckland City's inferior system."

Mr Williams acknowledged there would be swings and roundabouts with the transfer of assets, but said Rosedale was a jewel in the crown arising from putting the environment first.

The commission has also recommended the region's major trading and infrastructural activities should be undertaken through seven council-controlled organisations for water and wastewater, transport, solid waste, urban development, the city centre and waterfront, major events, and the $1.2 billion of financial assets owned by Auckland Regional Holdings.

A number of submitters believed the creation of regionwide council-controlled organisations for services like water was a first step towards privatisation.

ASSET BASE

Proposed council-controlled organisations
* Watercare, managing the region's water and wastewater services.
* Regional Transport Authority.
* Solid Waste Management.
* Urban Development.
* City Centre and Waterfront Development.
* Major Events Facilities (eg, Aotea Centre, Bruce Mason Centre, Mt Smart Stadium).
* Auckland Regional Holdings (includes 100 per stake in Ports of Auckland).