The Taxpayers’ Union can confirm through the Local Government Official Information and Meeting Act that Palmerston North City Council has a 100 percent equity share in Palmerston North airport, valued at $84 million. Meanwhile, under the long term plan, net debt is planned to increase to $553 million by 2034.

“Currently, the 10.1 percent increase in local rates will still see debt more than double over the next decade” said Local Government Campaigns Manager, Sam Warren.

“Servicing the interest on this debt alone would cost each household $710 in 2034, factoring in projected population growth.

"Mayor Smith and councillors need to do the right thing and use their equity in the airport to pay down spiralling debt levels.

“Changes are already coming to the airport with a $40 million upgrade budget, and no current ratepayer funding. Councils no longer need to own airports that are commercially sustainable, and also involved with operating its flight school, and planning to expand into housing developments.

“Palmy needs to divest from this business, pay down debt, and make sure operations made under its CCOs cannot be provided more effectively by private operators."

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