KEY POINTS:
Auckland City ratepayers are being denied relevant information by their council to decide a $500 million sale of airport shares, says Manukau Mayor Sir Barry Curtis.
The Auckland council decided behind closed doors on Thursday to consult the public about the possible sale of its 12.75 per cent
shareholding before receiving all the information about various offers for the airport company.
Sir Barry yesterday said he was nonplussed at the process, saying Auckland City ratepayers could draw the conclusion that the council was contemplating selling its shares.
"I believe the public deserve to have all the information relevant for them to make an informed decision," he said.
Manukau councillors would wait for a report by officers examining two proposals for its 10.05 per cent holding before deciding what to do.
Sir Barry said that if his council decided not to sell, there would be no public consultation "because we would have nothing to consult the public on".
If the council proposed to change the status quo, the public would be given details of any proposals being considered and the implications.
At least two parties are seeking to buy the Auckland City and Manukau shareholdings which together are nearly a quarter of the airport shares, worth about $900 million.
Two weeks ago, the councils said they had been approached by the Canadian Government's mega-pension fund to buy their shares for $3.10 each before a possible takeover. The shares last traded at $3.28.
In 2002, Auckland City sold half its 25 per cent holding in the airport company for $190.8 million. Manukau, under Sir Barry, has fiercely resisted offers and taken its stake above 10 per cent to block anyone trying to gain 100 per cent control.
Last night, Acting Auckland Mayor Bruce Hucker said the council knew "roughly" what the likely range of options would be in any approach.
He refused to say if ratepayers would be given specific information about specific proposals.
"We will be putting out options at an early stage to get public advice about what they wish us to do in response to a situation that is changing rapidly and where decisions might have to be made quite quickly," Dr Hucker said.
"I don't see our approach as being fundamentally opposite from Manukau City Council's approach but it is different."
The council plans to begin a one-month consultation period in two weeks.
