Airport Decision A Good Move

The government’s decision this afternoon to block the sale of 40-percent of shares in Auckland Airport to the Canadian Pension Plan has drawn clear battle lines for this year’s election, while at the same time forcing National into a very difficult position. Of course, the decision came as no surprise. All indications over the past month or so have been that the government would veto the proposal, and there is probably a lot of truth to the argument that the move was largely political. Indeed, the average New Zealander is very sensitive about New Zealand assets being controlled by foreign investors, and Labour has obviously picked up on that.

While National is busily decrying today’s actions as sending a clear sign to foreign investors that their money is not welcome here, I think most New Zealanders will probably see this as a good move. The perception, whether well founded or not, that a major New Zealand asset could pass to foreign owners is simply unpalatable for many New Zealanders, especially those with not so fond memories of the privatisations of the 80s and 90s. And although the Canadians would not have acquired a controlling interest in the airport, they would have had the largest number of shares held by one investor, and thus quite an influence.

I’m sure that National will continue to flog this issue for a few weeks yet, but I don’t think the majority of New Zealanders are listening. As far as they’re concerned, the government has just moved to keep a New Zealand asset in New Zealand hands, and that’s exactly what the government should be doing. National, on the other hand, appear to be lamenting that fact that Auckland Airport won’t be owned by Canadians, and that’s not something that will go down well with the electorate.

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