Minister keen on corporatised airport

New Plymouth Airport could become a company able to raise its own capital to fund development, Transport Minister Steven Joyce said yesterday.

The Government is not planning to sell its 50 per cent stake in the airport, an idea supported by New Plymouth MP Jonathan Young, Mr Joyce said.

"What we're really looking at is corporatising the airports that are there," Mr Joyce told the Taranaki Daily News.

Under the proposal, the Government and the New Plymouth District Council would each retain its 50 per cent stake in the airport.

But unlike at present, where the two owners both contribute money towards development, a cause of conflict in the past, the new corporate model would allow the owners to raise outside money to fund development.

The idea is based on a recent project in Hawke's Bay and Mr Joyce said it would be offered to all jointly owned regional airports around New Zealand if they wanted to take it up.

He said that in time the structure could allow for outside shareholders to come in but that hadn't been discussed as yet.

Under such an arrangement the two partners would split any profits down the middle but he said it was more about being able to raise funds.

"I think the catalyst would be if there's some particular development they would like to see take place.

"That's where it sits at the moment and it's really for the council to decide whether it wants to corporatise the airport."

He vetoed selling the airport to the council for $1, an idea mooted under the last National government.

"I don't think that's on the table," he said.

"But good on Jonathan Young for giving it a go. I'd do it if I was a local MP as well."

- © Fairfax NZ News