The ACT Party has reiterated its support for selling the Crown’s 25% stake in Christchurch International Airport, arguing that government ownership of an airport is not a core function of the state. However, the Government has stated that asset sales are not a priority for this term, leaving any potential divestment off the table for now.
Seymour: Time to Reconsider Government Asset Ownership
ACT leader David Seymour used his first major speech of the year to call for a fresh approach to government asset ownership. He argued that New Zealand should “get past squeamishness about privatisation” and focus on whether taxpayer funds are being used effectively.
“If we want to be a first-world country, then are we making the best use of the Government’s half a trillion dollars-plus worth of assets?” Seymour asked. He suggested that the money tied up in state-owned assets could be redirected to more pressing infrastructure, healthcare, education, and housing needs.
When asked specifically about Christchurch International Airport Limited (CIAL), Seymour made it clear that ACT believes selling the Crown’s 25% stake is the right move. “Owning an airport isn’t part of the Government’s core business and would support selling its share so the money can be better used elsewhere,” he said.
Christchurch Airport’s Ownership and Performance
The Crown currently owns a minority 25% stake in CIAL, with the remaining 75% held by Christchurch City Holdings Limited (CCHL), the investment arm of Christchurch City Council. The airport is the second-largest in New Zealand and has seen strong post-pandemic growth.
For the financial year ending June 2024, CIAL reported a net profit after tax of $41.8 million on revenue of $233.1 million, up 15% from the previous year. It also has a growing property portfolio and total assets valued at over $2.3 billion.
Some investment analysts view CIAL as a highly attractive asset. Mark Lister, investment director at Craigs Investment Partners, has previously argued that selling a portion of shares could provide financial relief while maintaining local ownership. “You genuinely can have the best of both worlds because you sell some, but not all,” he said. “You get some money in the door, which takes a bit of pressure off the rates, and you still have that ownership stake.”
Government Says No Immediate Plans for Sale
Despite ACT’s push for asset sales, the Government has ruled out selling any state-owned assets in this term. State-Owned Enterprises Minister Simeon Brown emphasised that the Government’s focus is on economic growth, not divestment.
“Asset sales are off the table for this term. They’re not a priority,” Brown said. He acknowledged, however, that discussions around “asset recycling” could take place in the future but would require a public mandate in the next election.
Brown’s predecessor, Paul Goldsmith, had previously signalled the Government’s interest in ensuring CIAL provided a strong commercial return. In a letter to CIAL board chair Sarah Ottrey, Goldsmith outlined expectations for the airport to represent a value-for-money investment for the Crown.
Ngāi Tahu Holds First Right of Refusal
If the Government ever decides to sell its stake, South Island iwi Ngāi Tahu would have the first right of refusal. This provision, a standard clause in Treaty of Waitangi settlements, means that Ngāi Tahu would have the opportunity to purchase the Crown’s share before it is offered to other buyers.
In the past, discussions about shifting airport ownership have been quickly dismissed. In 2021, a proposal from Environment Canterbury to acquire a stake in CIAL to help fund Christchurch’s new stadium, Te Kaha, was swiftly shut down.
Debate Likely to Continue
While the Government has ruled out asset sales for now, ACT’s stance reflects a broader debate on whether the Crown should retain ownership of commercial enterprises. The issue could resurface in the lead-up to the next election, particularly if economic pressures mount and the Government seeks new funding sources for infrastructure projects.