Dubai deal on ice. Great, but threat to public ownership remains

Dubai Aerospace's bid to take control of Auckland International Airport has been shelved - but only for the moment. Continued threats to public ownership of the airport shares remain.

Firstly, there is no certainty that this is the absolute end of the road for the Dubai bid. All Dubai have very vaguely said is that the offer "could not proceed in the form proposed". Word is that "DAE could come back with a cash bid for the airport, but will wait till CPP discloses details of its offer". Clearly there remains a possibility that Dubai will ressurect its bid in some other form.

Secondly, as the Canadian Pension Plan bid shows, there are plenty of other willing buyers out there. Why wouldn't there be? The airport is a prime asset.

And thirdly, although Auckland City Council has decided not to alter its long-term plan to enable a sale on this occasion, C&R Councillor Scott Milne has publicy noted that the plan could be altered if another bid came along. It is here that the threat to Auckland ratepayers continuing to hold the shares lies.

C&R have consistently equivocated about the sale of the shares. Although pressure from the public and City Vision has saved the shares this time, C&R, who sold half the shares in 2002, are philospohically in favour of the privatisation of "non-core" assets:

"Former C&R Now councillor William Cairns said now was the time to sell the shares and use the proceeds to invest in stormwater, footpaths, buses, train station ugprades and community facilities like libraries, the zoo and art gallery" (August 28 2007)

"Another C&R Now politician, Michael Barnett, wearing his hat as Auckland Chamber of Commerce chief executive, is also pushing for selling the shares" (August 22 2007)

City Vision's position is clear. The airport is a strategic asset for the people of Auckland and we will not sell it. Only a vote for City Vision will guarantee ongoing public ownership of the shares.