Manukau Must Hold Airport Shares

It is essential that Manukau City Council holds its 122 million shares in the Auckland International Airport Company for the long term. From the original 30 million shares that were inherited in the 1980's for $30 million, Manukau shares are now valued at approximately $400 million. Manukau City’s commitment to the ownership of these shares in the face of demands from some to sell has been well and truly vindicated.

There are many reasons why Manukau needs to hold the shares long term. The Airport Company is a strategic asset of the Manukau City and employs many people from within our community. Our city has a strategic and practical interest in the continued growth and development of the airport.

Manukau has received outstanding dividend streams from its shareholding and presently receives $10 million per annum to complement its rating income. Since 1999 Manukau City has received $67 million of dividends. The more that it receives in airport share dividends the less that is required from our residents from rating every year.

The Airport Company regularly issues special dividends, the largest being $20 million four years ago, and two years ago a further $14 million. Manukau has received special divdend payouts of approximately $50 million since 1999. These are great windfall payments to our city and community and a significant return on investment for the continued long term hold of these airport shares on behalf of our people.

This country has made significant losses in the last 15-20 years in selling down the family silver. It has been commented by Brian Gaynor that Auckland City in selling down half its shareholding four years ago, has lost $300 million in value at today's share prices. In my view it is essential that our city continues its strong philosophical commitment to holding the airport shares inherited from our forebears. The shares are in our trust and guardianship for the benefit of our future generations.

Even with the growth in the value of the city’s shareholding over the last 20 years, there is considerable potential for company growth, both in terms of airport development and land development around the airport. Therefore, I believe there is significant commercial potential in increasing value for shares. I encourage our Council, the Auckland City Council and the Mum and Dad shareholders in this company to think strategically, for their own personal investment, and the Auckland region's and New Zealand's financial wellbeing. Hold the shares and enjoy the long term financial benefits of this extraordinary and important company.

Len Brown
Mayoral Candidate
Manukau City

ENDS

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