Wellington Chamber of Commerce

Thursday 11th February 2016
Business support for runway highest for two years, Chamber survey shows

Business support for lengthening Wellington Airport’s runway is now the highest it’s been since the Chamber of Commerce first asked members about it two years ago, according to the latest survey.

It shows support for the runway extension project is at 86%. There has been consistently strong support throughout the Chamber surveys, varying between the mid-70% and mid-80% ranges.

Chamber members have raised the runway issue unprompted in business confidence surveys since 2013 when asked what barriers were holding back the Wellington economy.

The latest survey was taken between January 15 and 29. It was the Chamber’s first specialist survey, with previous questions on the runway extension being part of the quarterly confidence surveys.

Of the businesses responding to the latest survey, 59% say a runway extension would benefit their business directly. When asked if they believe an extension would benefit businesses in the region, 88% say it would, while just 6% say it wouldn’t. Some 89% say it would benefit the region as a whole.

Members were asked if they support the development to extend the runway; if they believed an extension would benefit their business, businesses in the region, the region as a whole; and about the return on investment. They were also asked to give examples of the impact an extension would have on their business.

When asked how compelling the argument is for an extension on the basis that the return on investment analysis predicts that for each $1 spent there would be a national benefit of $7, some 88% of respondents say it is compelling or very compelling, while just 12% say it is less than compelling or uncompelling.

Some 87% say the benefit-cost ratio of 1.7 is compelling or very compelling (a project ratio of greater than 1 means greater benefits than costs).

Chamber Chief Executive John Milford says the survey shows clearly that businesses see significant economic impacts for themselves and for the region from a runway extension.

“Our members are clearly engaged on this issue.

“The most compelling arguments came from comments that were volunteered around the impact on individual businesses. They included improved access to overseas markets, increased incoming tourism, reduced freight times, and overall economic growth for both their businesses and the wider region.

“These comments are significant because they are from businesspeople who deal with these very issues day in and day out.

“It’s very interesting to see how support for a longer runway has increased. A couple of years ago I was being approached relatively often by members who had their doubts about it, but those approaches have now all but disappeared.

“Perhaps this is because of the tangible benefits such as big time savings that can be seen from the new Singapore Airlines service to Canberra and Singapore. Perhaps that’s brought the benefits home more clearly.

“Whatever the reasons, business sentiment is now firmly behind the gains they can see to their own business situation, the region’s economy, and the benefit to the national economy, which is estimated at $2.1 billion.

“But as compelling as the arguments are, the Chamber remains of the opinion that the business case for the extension must continue to stack up.

“There’s been a lot of rhetoric around whether the business case needs to be backed by a commitment from an airline, but that has not come through in our members’ responses in this survey. They’re saying that’s not essential.

“You can have all the enthusiasm in the world, but those things have to stack up. There’s too much at risk otherwise.”

ENDS

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