3. SUE BRADFORD (Green) Link to this
to the Minister with responsibility for Auckland Issues
What are the costs and benefits to Auckland of the possible sale of Auckland International Airport, a key strategic asset and gateway to New Zealand?
Hon Dr MICHAEL CULLEN (Leader of the House) Link to this
Any decision on this matter will be made under the relevant test of the Overseas Investment Act. As sensitive land is involved, the two Ministers responsible for the decision will have to take into account the national benefit issues outlined in section 17 of the Act, which go well beyond the standard business test.
Does the Minister agree with the comments of Manukau’s Mayor, Sir Barry Curtis, on Radio New Zealand National this morning that he is totally opposed to foreign control of a 51 percent stake in Auckland International Airport, and that control of one of New Zealand’s key strategic assets must be left in the hands of Aucklanders and New Zealanders?
Hon Dr MICHAEL CULLEN Link to this
The nature of the asset and the nature of the cost and benefit involved in any decision will be taken into account by the two Ministers.
Rt Hon Winston Peters Link to this
Is the Government aware that the merger implementation agreement between Auckland International Airport and Dubai Aerospace Enterprise contains a clause that seeks to enhance the relationship between the airport and one named airline, which is not Air New Zealand; and on what basis could the Government consider a deal that allows a foreign takeover of arguably our most important strategic asset, and that explicitly seeks to favour one particular foreign-owned airline, to be a benefit to New Zealand taxpayers and the city of Auckland?
Hon Dr MICHAEL CULLEN Link to this
I am not aware of that clause. Obviously, that clause itself is a matter that will be taken into account by the two Ministers making a decision.
Keith LockeIs the Minister concerned that because the Commerce Commission is not legally permitted to instruct airports over the level of their fees, the sale of Auckland International Airport to rapacious overseas owners could lead to crippling monopoly rents, and dramatically increase the cost of air travel for both New Zealanders and tourists?
Hon Dr MICHAEL CULLEN Link to this
That is not the responsibility of the Minister with responsibility for Auckland Issues, but, in fact, the member is wrong—there is power under the Commerce Act to regulate prices at airports. To this point the decision has been taken not to do so, but the power is certainly there.
Rt Hon Winston Peters Link to this
Would the Prime Minister—sorry, the Minister of Finance—be in any way surprised to know that our old mates Russell McVeagh drew up this document; that it is all the same old faces in the same old places doing the same old thing to screw New Zealand; and that at 4.1(c) of clause 4, “Tourism growth”, these words are to be found: “enhance the relationship between the business and Emirates Airline with a view to increasing New Zealand tourism and creating new routes and services to Auckland”?
Hon Dr MICHAEL CULLEN Link to this
In light of the previous round of questions, perhaps I should say that the Government’s impartiality extends even to the nature of law firms that may draw up contracts for people outside this Parliament.
Should the Government end up decisively doing nothing, will there be any point at which the sale of assets such as Auckland International Airport undermines our current account deficit to such an extent that the Minister of Finance might decisively intervene and halt the loss of New Zealand assets to foreign owners?
Madam SPEAKERI think I should note that the primary question was addressed to the Minister with responsibility for Auckland Issues, not to other Ministers, so the ministerial responsibility, in that sense, is more constrained. But I will ask the Hon Dr Michael Cullen to answer as he thinks fit.
Hon Dr MICHAEL CULLEN Link to this
The Minister with responsibility for Auckland Issues is not responsible for any decision in this matter. It is a decision to be taken by the Minister for Land Information and the Associate Minister of Finance Trevor Mallard, to whom the Minister of Finance has delegated his responsibilities in that regard. Neither can “decisively do nothing”, because they will have to make a decision.
Rt Hon Winston Peters Link to this
Is the Minister of Finance aware of the US Senate recently blocking the sale of several US ports to Dubai-based consortia, citing—
The member can finish his question, but I would just note that, as I said before, the primary question was addressed to the Minister with responsibility for Auckland Issues. So if his question could address that.
Rt Hon Winston Peters Link to this
Oh yes, but we know who the Minister is! Is the Government aware of the US Senate recently blocking the sale of several US ports to Dubai-based consortia, citing national security issues, and, with 70 percent of international business coming to this country arriving through Auckland International Airport, will the Government consider matters of national security when the Overseas Investment Commission is asked to rule on the takeover?
Hon Dr MICHAEL CULLEN Link to this
As I have said, the decision will be taken by the two Ministers. It will not be delegated to the Overseas Investment Commission, given the size and the importance of the decision to be made. The Ministers can take, under section 17, a range of factors into account, the last of which is any other factor set out in regulations.
Rt Hon Winston Peters Link to this
Will the Minister consult her Cabinet colleagues in an endeavour to clear up the total misuse of the term “foreign investment” in this case, which is clearly a foreign takeover of an existing business that has been built to the size it is by New Zealanders, and there is no guarantee that, as a consequence of this takeover—just as with New Zealand Rail, which National sold—there will be any more new investment or one new job?
Hon Dr MICHAEL CULLEN Link to this
I think it is worth noting that the Overseas Investment Act deals primarily with the takeover of existing New Zealand assets, rather than greenfields investment in previously non-existing assets.
Rt Hon Winston Peters Link to this
Can the Government guarantee the people of this country that its considerations will be somewhat more serious than those between 1990 and 1996, when not one application to the Overseas Investment Commission was turned down by either the commission or the National Party in Government?.
Rodney HideI raise a point of order, Madam Speaker. There is a need for a little bit of discipline at question time. The Rt Hon Winston Peters, who is actually a Minister in this Cabinet, is meant to be asking questions of the Minister with responsibility for Auckland Issues, but we have heard him call her the Prime Minister—he addressed a question to the Prime Minister—then call her the Minister of Finance, and now, in his latest question, decide to call her the Government. Well, I think we all admire the Minister with responsibility for Auckland Issues for her many achievements, but the Rt Hon Winston Peters should actually rein himself in a bit and understand that the primary question—and I know that it is hard for him to keep up—was addressed to the Minister with responsibility for Auckland Issues, and that is how the supplementary questions have to be framed.
I remind members that points of order should be made succinctly. If every member in this House who mis-spoke was called up on it, we would probably not make much progress at any time. I thank the member for leaping to his feet so quickly. I was about to rise myself and say that there is no ministerial responsibility for that question. The Rt Hon Winston Peters.
Hon Maurice WilliamsonRt Hon Winston Peters Link to this
Well, Wellington airport, of course, was sold to majority ownership by you, Maurice.
Rt Hon Winston Peters Link to this
It was a supplementary question rudely interrupted by Mr Williamson from Pakuranga. He wanted to remind you, Madam Speaker, and the House that it was he who had betrayed the people of this country when National sold Wellington airport.
Gerry BrownleeI raise a point of order, Madam Speaker. You were very quick to give the Leader of the Opposition a bit of a flick for using one word “Well”, when he was absolutely exasperated at the lack of content in the Prime Minister’s answers, but we have had this circus going on from Winston Peters for a number of minutes without much comment.
Yes, I agree, but I say to members that if they interject, the likelihood is that there will be a response, and that will lead to disorder. I want members to take that on board at this time.
Rt Hon Winston Peters Link to this
Has the Minister any information in respect of someone trained by Fay Richwhite who is at the moment the chief lobbyist and negotiator operating on behalf of Dubai Aerospace Enterprise to effect the airport sale, who is also lobbying the National Party today, and whose name is Brett Shepherd?
Hon Dr MICHAEL CULLEN Link to this
Sadly, I have to admit that, no, I do not. However, I think it is fair to say that the two Ministers who will make the decision will probably not consider that to be a relevant consideration under the Overseas Investment Act!
Sue KedgleyI raise a point of order, Madam Speaker. I wonder whether you would request the Rt Hon Winston Peters to table the document he was quoting from during his questions.