Bradford Sue: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Bradford Sue: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 24 July 2007. Volume:640;Page:10595. Text is incorporated into the Bound Volume.] 
3.  
SUE BRADFORD (Green) 
 to the  
Minister with responsibility for Auckland Issues 
: What are the costs and benefits to Auckland of the possible sale of Auckland International Airport a key strategic asset and gateway to New Zealand? 
Hon Dr MICHAEL CULLEN (Leader of the House) 
 on behalf of the 
 Minister with responsibility for Auckland Issues 
: Any decision on this matter will be made under the relevant test of the Overseas Investment Act. As sensitive land is involved the two Ministers responsible for the decision will have to take into account the national benefit issues outlined in section 17 of the Act which go well beyond the standard business test. 
Sue Bradford 
: Does the Minister agree with the comments of Manukau’s Mayor Sir Barry Curtis on Radio New Zealand National this morning that he is totally opposed to foreign control of a 51 percent stake in Auckland International Airport and that control of one of New Zealand’s key strategic assets must be left in the hands of Aucklanders and New Zealanders? 
Hon Dr MICHAEL CULLEN 
: The nature of the asset and the nature of the cost and benefit involved in any decision will be taken into account by the two Ministers. 
Rt Hon Winston Peters 
: Is the Government aware that the merger implementation agreement between Auckland International Airport and Dubai Aerospace Enterprise contains a clause that seeks to enhance the relationship between the airport and one named airline which is not Air New Zealand; and on what basis could the Government consider a deal that allows a foreign takeover of arguably our most important strategic asset and that explicitly seeks to favour one particular foreign-owned airline to be a benefit to New Zealand taxpayers and the city of Auckland? 
Hon Dr MICHAEL CULLEN 
: I am not aware of that clause. Obviously that clause itself is a matter that will be taken into account by the two Ministers making a decision. 
Keith Locke 
: Is the Minister concerned that because the Commerce Commission is not legally permitted to instruct airports over the level of their fees the sale of Auckland International Airport to rapacious overseas owners could lead to crippling monopoly rents and dramatically increase the cost of air travel for both New Zealanders and tourists? 
Hon Dr MICHAEL CULLEN 
: That is not the responsibility of the Minister with responsibility for Auckland Issues but in fact the member is wrong—there is power under the Commerce Act to regulate prices at airports. To this point the decision has been taken not to do so but the power is certainly there. 
Rt Hon Winston Peters 
: Would the Prime Minister—sorry the Minister of Finance—be in any way surprised to know that our old mates Russell McVeagh drew up this document; that it is all the same old faces in the same old places doing the same old thing to screw New Zealand; and that at 4.1(c) of clause 4 “Tourism growth” these words are to be found: “enhance the relationship between the business and Emirates Airline with a view to increasing New Zealand tourism and creating new routes and services to Auckland”? 
Hon Dr MICHAEL CULLEN 
: In light of the previous round of questions perhaps I should say that the Government’s impartiality extends even to the nature of law firms that may draw up contracts for people outside this Parliament. 
Sue Bradford 
: Should the Government end up decisively doing nothing will there be any point at which the sale of assets such as Auckland International Airport undermines our current account deficit to such an extent that the Minister of Finance might decisively intervene and halt the loss of New Zealand assets to foreign owners? 
Madam SPEAKER 
: I think I should note that the primary question was addressed to the Minister with responsibility for Auckland Issues not to other Ministers so the ministerial responsibility in that sense is more constrained. But I will ask the Hon Dr Michael Cullen to answer as he thinks fit. 
Hon Dr MICHAEL CULLEN 
: The Minister with responsibility for Auckland Issues is not responsible for any decision in this matter. It is a decision to be taken by the Minister for Land Information and the Associate Minister of Finance Trevor Mallard to whom the Minister of Finance has delegated his responsibilities in that regard. Neither can “decisively do nothing” because they will have to make a decision. 
Rt Hon Winston Peters 
: Is the Minister of Finance aware of the US Senate recently blocking the sale of several US ports to Dubai-based consortia citing— 
Madam SPEAKER 
: The member can finish his question but I would just note that as I said before the primary question was addressed to the Minister with responsibility for Auckland Issues. So if his question could address that. 
Rt Hon Winston Peters 
: Oh yes but we know who the Minister is! Is the Government aware of the US Senate recently blocking the sale of several US ports to Dubai-based consortia citing national security issues and with 70 percent of international business coming to this country arriving through Auckland International Airport will the Government consider matters of national security when the Overseas Investment Commission is asked to rule on the takeover? 
Hon Dr MICHAEL CULLEN 
: As I have said the decision will be taken by the two Ministers. It will not be delegated to the Overseas Investment Commission given the size and the importance of the decision to be made. The Ministers can take under section 17 a range of factors into account the last of which is any other factor set out in regulations. 
Rt Hon Winston Peters 
: Will the Minister consult her Cabinet colleagues in an endeavour to clear up the total misuse of the term “foreign investment” in this case which is clearly a foreign takeover of an existing business that has been built to the size it is by New Zealanders and there is no guarantee that as a consequence of this takeover—just as with New Zealand Rail which National sold—there will be any more new investment or one new job? 
Hon Dr MICHAEL CULLEN 
: I think it is worth noting that the Overseas Investment Act deals primarily with the takeover of existing New Zealand assets rather than greenfields investment in previously non-existing assets. 
Rt Hon Winston Peters 
: Can the Government guarantee the people of this country that its considerations will be somewhat more serious than those between 1990 and 1996 when not one application to the Overseas Investment Commission was turned down by either the commission or the National Party in Government?. 
Rodney Hide 
: I raise a point of order Madam Speaker. There is a need for a little bit of discipline at question time. The Rt Hon Winston Peters who is actually a Minister in this Cabinet is meant to be asking questions of the Minister with responsibility for Auckland Issues but we have heard him call her the Prime Minister—he addressed a question to the Prime Minister—then call her the Minister of Finance and now in his latest question decide to call her the Government. Well I think we all admire the Minister with responsibility for Auckland Issues for her many achievements but the Rt Hon Winston Peters should actually rein himself in a bit and understand that the primary question—and I know that it is hard for him to keep up—was addressed to the Minister with responsibility for Auckland Issues and that is how the supplementary questions have to be framed. 
Madam SPEAKER 
: I remind members that points of order should be made succinctly. If every member in this House who mis-spoke was called up on it we would probably not make much progress at any time. I thank the member for leaping to his feet so quickly. I was about to rise myself and say that there is no ministerial responsibility for that question. The Rt Hon Winston Peters. 
Hon Maurice Williamson 
: How about the sale of Wellington airport? 
Rt Hon Winston Peters 
: Well Wellington airport of course was sold to majority ownership by you Maurice. 
Madam SPEAKER 
: Is this a supplementary question or a point of order? 
Rt Hon Winston Peters 
: It was a supplementary question rudely interrupted by Mr Williamson from Pakuranga. He wanted to remind you Madam Speaker and the House that it was he who had betrayed the people of this country when National sold Wellington airport. 
Gerry Brownlee 
: I raise a point of order Madam Speaker. You were very quick to give the Leader of the Opposition a bit of a flick for using one word “Well” when he was absolutely exasperated at the lack of content in the Prime Minister’s answers but we have had this circus going on from Winston Peters for a number of minutes without much comment. 
Madam SPEAKER 
: Yes I agree but I say to members that if they interject the likelihood is that there will be a response and that will lead to disorder. I want members to take that on board at this time. 
Rt Hon Winston Peters 
: Has the Minister any information in respect of someone trained by Fay Richwhite who is at the moment the chief lobbyist and negotiator operating on behalf of Dubai Aerospace Enterprise to effect the airport sale who is also lobbying the National Party today and whose name is Brett Shepherd? 
Hon Dr MICHAEL CULLEN 
: Sadly I have to admit that no I do not. However I think it is fair to say that the two Ministers who will make the decision will probably not consider that to be a relevant consideration under the Overseas Investment Act! 
Sue Kedgley 
: I raise a point of order Madam Speaker. I wonder whether you would request the Rt Hon Winston Peters to table the document he was quoting from during his questions. 
Madam SPEAKER 
: That is not a point of order. If the member wishes to table it at any time I am sure he will. If he wants to table it he should do it now.