KEY POINTS:
Only one of the eight mayoral candidates for Auckland and Manukau has backed the billion dollar takeover proposal by a Dubai company of Auckland International Airport.
Steve Crow, who will contest the Auckland mayoralty, says if the money can be put to work in the city, Aucklanders should
not let their emotions get in the way of a good deal.
And the porn industry businessman dismissed concern about foreign ownership of the airport.
"They can't pick it up and take it away. Who owns it is irrelevant."
Mr Crow's view put him at odds with the other mayoral candidates over what is shaping as a crucial mayoral election issue.
The proposed deal, which would see Dubai Aerospace Enterprise pay up to $2.6 billion, needs 75 per cent approval from shareholders.
The decision will be put to the vote in November, but Manukau and Auckland city councils - which own a combined 22.8 per cent holding - first face local body elections in November.
All four mayoral candidates for Manukau yesterday said they would be extremely reluctant to sell the authority's shares if they go into office.
The other Auckland candidates also refused to back the deal.
All expressed at least some concern about foreign ownership of a strategic Auckland and New Zealand asset.
That view was shared by most of the people who contacted the Herald.
Of 45 emails received by yesterday afternoon, just two supported the sale of the council's shares. Many of the others said the "family silver" should not fall into foreign hands.
Manukau Mayor Sir Barry Curtis said officials from the council met DAE chief executive Bob Johnson yesterday. He would not comment on the nature of the talks.
Meanwhile, Foreign Minister and New Zealand First Leader Winston Peters has claimed the proposed deal would seek to favour Dubai airline Emirates ahead of others including the national carrier Air New Zealand.
"On what basis could the Government consider a deal which allows a foreign takeover of arguably our most important strategic asset, and explicitly seeks to favour one particular foreign owned airline, to be of benefit to New Zealand taxpayers and the city of Auckland?" Mr Peters asked Deputy Prime Minister Michael Cullen in the House yesterday.
Mr Peters said a clause on tourism growth in the merger implementation agreement said an aim of the new company would be to "enhance the relationship between the business and Emirates Airlines with a view to increasing NZ tourism, and creating new routes and services to Auckland".
Dr Cullen said he was unaware of the clause, but it would be a matter "taken into account by the two ministers making the decision".
Associate Finance Minister Trevor Mallard and Land Information Minister David Parker will decide if DAE can own the airfield.
The chairman of DAE, Sheikh Ahmed bin Saeed Al Maktoum, is also chairman of Emirates Airline.
The majority view
John Hinchcliff
"My gut feeling is do we really need to sell our assets to overseas interests? You salivate when you think of getting that kind of money, for things like public transport and resources in the likes of Otahuhu and Glen Innes, which are woefully neglected, but my initial reaction is caution."
Steve Crow
"If there's a better use for the value of the airport then I would be in favour of selling. Aucklanders and the city council should not get emotionally attached to an asset. There's no place for emotional ties in business. They can't pick it up and take it away. Who owns it is irrelevant. The money [from the sale] should be used on infrastructure and transport. This can only go ahead if the money is not squandered."
John Banks
"We've witnessed far too many strategic assets leaving for other shores. Whether the next council sells the shares needs to be taken in the context of widespread public consultation. It does not make sense to sell these shares and squander the money. If the council sold the shares to invest in infrastructure, then in a perfect world they would be sold, for example, to the NZ Super fund."
Dick Hubbard
"I need more information and time to digest the ramifications. If we went down that path, I would imagine the money would be invested in a strategic asset for the city. The airport shares are seen as the family silver so I would not want any money from a sale to go into general operating expenses. The council's position at the moment is that we don't have a position. There's a possibility of other offers and there's the question of consultation."
Sir Barry Curtis
"Since the airport company was listed in 1998 Manukau has received a total of $108 million in dividends, special dividends and capital repayment. It's been a magnificent strategic investment for the Manukau City Council. I have fought elections in the yesteryear on several occasions where people have imposed on me the sale of the shares, I refused and I won by a handsome majority. I have always held the view that under no circumstances should we permit any foreign company or foreign interest to take a majority shareholding in the Auckland International Airport."
Arthur Anae
"I will not sell Manukau's shares and my endeavours will be to make sure other councillors do not sell the shares that Manukau City owns. I think shares are an asset of the city which have grown in value. I think New Zealand should be very careful about foreign ownership of our airports. They are very strategic points to own and foreign ownership gives us no control on what charges could be put on that airport and New Zealanders will pay in the long run."
Dick Quax
"We just don't know enough about them yet, but certainly my instinct is to hold on to the shares. They're a very good investment and there's a lot of upside left in the airport shares. Certainly they're worth a lot more to the shareholder than they are currently showing and that's why there's so much foreign interest in them. I would have some concerns about foreign ownership of the airport."
Len Brown "We can't afford to keep flogging off the family silver. I have found there is a very strong sentiment from the community to hold on to the shares. We hold only 10.05 per cent and can't go it alone, so this sale could take place without us. The message I'm sending out to Auckland is for them to be a part of an over-arching regional agreement between the two biggest councils to not sell out. The message to mum and dad shareholders is to hold tight, it's just not about your back pocket on this one."
