Cost shock forced Government rethink on Whenuapai

The Government was forced to rethink its position on Whenuapai after a new report found the cost of the Air Force move would be significantly higher than estimated, says Jim Anderton.

The report's suggestion that the shift would take longer than expected was also a factor, the Economic Development Minister said.

He described accusations by Infratil executive Tim Brown that the Government was acting in Air New Zealand's interests "outrageous" and said papers released today would make that evident.

Mr Brown said there was a clear practical and business case for the establishment of a commercial airport which the Government was desperate to ignore. He said some of Mr Anderton's reasoning was "embarrassing".

The minister agreed that Infratil, Waitakere City Council and other groups pursuing the airport had been entitled to expect the Government to decide on the land's future now.

The Government had hoped to as well, he said.

It had been given two reports prepared by the Defence Force and independent consultants.

"One gave a rather easy picture of the road ahead and that's the one on which we based our indications that we were able to make a decision imminently. And then they came up with the second one."

The second report had "some reasonably significant variations in timing and cost from the original".

Sources said it found the costs of the move could be around $150 million - at least 50 per cent higher than initially projected.

Neither Mr Anderton nor Defence Minister Mark Burton would confirm the extent of the cost overrun.

Mr Burton announced in late 2002 that the base would be closed and Air Force operations "consolidated" at Ohakea within five years.

But Mr Anderton said this week the Defence Force told the Government it would not leave the base until 2010 at the earliest and 2014 at the latest. Those dates encompass the range of options presented to the Government from the second report.

Both ministers denied the Government might stagger the move to spread the costs.

Mr Burton has confirmed that the Defence Force would not welcome any joint-venture with a civil operator that would involve sharing facilities or buildings apart from the airstrip. "They don't have any facilities that are under-utilised ... "

Airport supporters said they could lease the land as long as Waitakere City was guaranteed of buying it when it was sold under the Public Works Act.

But the Government said it could be sold to another Government agency for public use, such as housing or a prison, instead.

Mr Brown said he believed the under-utilisation argument "somewhat implausible".

Mr Anderton also said the land Infratil could build on was used as a public golf course, which might anger locals, an argument Mr Brown described as "embarrassing".