Update on Progress on Hawke's Bay Airport
Wairoa Star article 14 April 2009
I write my column this week to give you an update on progress towards extending the runway at our HB Regional Airport. This is a key piece of regional infrastructure for people from Central Hawkes Bay through to Wairoa.
A few facts. Firstly the business of the Airport is owned 50% by the Government and 50% by our local councils. The underlying land upon which the airport sits, however, is owned separately from the business and is currently owned 100% by our local councils.
The shareholders of the business are currently in a process which will corporatise the Airport by 1st July, 2009. This is going to plan. This basically turns the business into a company and potentially allows the new company to raise debt against its assets. This will help facilitate an extension of the runway.
Once the corporatisation is completed it will be up to the new Airport Board to apply to the shareholders to extend the runway. Providing the new Board are of this mind I understand that this can be achieved without additional capital so the tick off should be achievable relatively quickly.
An outstanding issue, however, is the lease of land at the southern end of the runway (required for the extension) which is not owned by the Councils. The additional land is owned by Ahuriri Station which is in turn owned by Landcorp. Lease of this land requires tick off from the Minister of State Owned Enterprises and by local claimants. The Ahuriri Station is the subject of a Treaty Settlement so the leasing of land from an asset that is subject to a Treaty Settlement is not a straight forward exercise. I understand that local claimants are keen to facilitate this as they too want to see the Hawke's Bay grow and prosper.
However, the issues of correct "mandate" to allow the leasing become very important so that the potential lease contract does not become null and void down the track. As a result this may take some time. Craig Foss and I are working now to try and facilitate this process as quickly as possible, ensuring all parties interests are protected. Our goal is to try and align the lease with the new Board's aspirations later in the year so that they can complete the extension of the runway as soon as possible and certainly in time for the Rugby World Cup.
Wairoa Star article 14 April 2009
I write my column this week to give you an update on progress towards extending the runway at our HB Regional Airport. This is a key piece of regional infrastructure for people from Central Hawkes Bay through to Wairoa.
A few facts. Firstly the business of the Airport is owned 50% by the Government and 50% by our local councils. The underlying land upon which the airport sits, however, is owned separately from the business and is currently owned 100% by our local councils.
The shareholders of the business are currently in a process which will corporatise the Airport by 1st July, 2009. This is going to plan. This basically turns the business into a company and potentially allows the new company to raise debt against its assets. This will help facilitate an extension of the runway.
Once the corporatisation is completed it will be up to the new Airport Board to apply to the shareholders to extend the runway. Providing the new Board are of this mind I understand that this can be achieved without additional capital so the tick off should be achievable relatively quickly.
An outstanding issue, however, is the lease of land at the southern end of the runway (required for the extension) which is not owned by the Councils. The additional land is owned by Ahuriri Station which is in turn owned by Landcorp. Lease of this land requires tick off from the Minister of State Owned Enterprises and by local claimants. The Ahuriri Station is the subject of a Treaty Settlement so the leasing of land from an asset that is subject to a Treaty Settlement is not a straight forward exercise. I understand that local claimants are keen to facilitate this as they too want to see the Hawke's Bay grow and prosper.
However, the issues of correct "mandate" to allow the leasing become very important so that the potential lease contract does not become null and void down the track. As a result this may take some time. Craig Foss and I are working now to try and facilitate this process as quickly as possible, ensuring all parties interests are protected. Our goal is to try and align the lease with the new Board's aspirations later in the year so that they can complete the extension of the runway as soon as possible and certainly in time for the Rugby World Cup.
