Government backs down over Rotorua Airport plans

By REBECCA DEVINE in Rotorua
Pressure from Rotorua has seen the Government backtrack over proposed fees which would have killed the city's transtasman airport dreams.

Finance Minister Michael Cullen yesterday announced Rotorua Airport - along with other regional airports wanting to become international - would only have to pay all of its passenger clearance costs for one year.

After that the fees would be brought into line with the existing international airports and some of the extra cost would be met by a Government subsidy.

The news has been greeted with relief by those involved with Rotorua Airport after fears the initial plan, costing more than $100 extra per passenger, would have ended Rotorua's plans of catering for transtasman flights.

Dr Cullen said as long as airports could meet the threshold of 9000 departing international passengers a year, they would receive a subsidy.



Rotorua mayor Kevin Winters said the announcement was "largely good news for Rotorua" and meant the city could proceed with its plans to redevelop the airport.

Mr Winters was a driving force in a campaign to get the Government to reconsider its initial proposal.

"[Yesterday's] announcement is not all we wanted. But it certainly goes a long way towards what we needed. The playing field is now on less of a slope than was being proposed."

Mr Winters said there was "certainly" some tentative interest from airlines flying directly from Australia's eastern seaboard cities to Rotorua and negotiations were ongoing. He would not elaborate for commercial reasons.

Rotorua Regional Airport chairman Neil Oppatt said the news was music to his ears.

"That is exactly the result that we were looking for. They listened to the argument."

Mr Oppatt said Rotorua should easily achieve a minimum of 9000 passengers in the first year. A report yet to be finished suggested Rotorua could initially expect four transtasman flights a week.

The Government's decision was an indication that "sooner or later the Rotorua Regional Airport will be transtasman capable", he said.

"Those who are anti that just have to get used to it."

Had the Government gone with its original decision of higher fees for new airports, five or six years of planning would have gone out the window, he said.

Mr Opatt said the airport company would have to shoulder the extra security costs for the first year instead of passing them on to passengers.

The airport already had some of the equipment and staff needed because of the security required for the jet flights to Christchurch.

Rotorua MP Steve Chadwick said it was a "significant breakthrough".

"[It is] probably a fair balance between the aspirations of go-ahead tourism regions like Rotorua and the fact that New Zealand already had seven international airports and that the taxpayer bore a large slice of the airport costs."

Councillor Mike McVicker said he was thrilled with the news - which was an important step in Rotorua's future.

He was, however, miffed with the change in attitude from Mrs Chadwick.

He questioned why she had recently criticised the plan to turn the airport transtasman, yet was now praising the proposal.

Mr McVicker also suggested the credit for lobbying the Government to change its mind should go to the mayor, not Mrs Chadwick.