Tauranga council considers future of city's airport

Tauranga Mayor Mahe Drysdale says the council does not plan on selling the city's airport, but is discussing whether some of its stake could be sold in the future.

In a meeting on Tuesday, Tauranga City councillors decided to set up a working group to look at Tauranga Airport governance and operational options.

The working group comprises the mayor, two elected members, a mana whenua representative and experts.

The airport is owned and operated by the council.

A report authorised by council chief operating and financial officer Craig Rice said the airport was a "strategic infrastructure asset" operated without ratepayer funding.

The report said a new model could give the airport more independent and specialised governance while keeping it accountable to the council.

Options presented included keeping the airport within the council; establishing a trust, a council-controlled organisation (CCO) or a council-controlled trading organisation (CCTO) to operate the airport; or establishing a CCTO that could allow the council to sell a minority stake in the facility.

Drysdale said councillors were not looking at selling the airport.

"That's not the intention of this. It's about looking at the governance and delivery of airport services.

"We've seen the reaction in the community: 'They're selling the airport', well, that's not at all what this is about."

He said councillors wanted to retain the option of selling a stake in the airport.

"If in the future, we decide that we want to sell a stake then we can go out and directly consult on that so the people have a say."

The report said the airport supported about 550,000 passengers a year and generated revenue from areas including parking, property leases and terminal activities.

Staff believe its size and commercial operations warranted considering a more specialised governance model.

The report said there was no immediate time pressure for the council to make a decision.

Councillors did not choose a preferred governance model, instead agreeing to establish the working group to investigate the options.

Any proposed change to the airport's ownership or governance would be consulted on through the council's 2027/37 Long-term Plan (LTP).

The council also approved seeking Inland Revenue advice on tax implications of selling a minority stake.

Council staff would report back on the options and tax advice before a preferred model and alternatives were put out for consultation through the Long-term Plan.

No final decision on the airport's future would be made until that process was complete.

Some commercially sensitive information relating to the airport discussion was not available to the public because the council said its release could disadvantage future negotiations.

Councillors asked staff to make working group agendas and minutes publicly available where possible, although some information may be redacted.