Tarras airport battle goes on
Opponents of Christchurch Airport’s controversial airport plan for Tarras in Central Otago are vowing to continue their fight after a decision to slow the project.
Christchurch Airport announced yesterday that it would be putting less money into the proposal.
It seems that Christchurch’s cash squeeze and a request to focus on shorter-term gains, rather than campaigns against the plan, are behind the decision.
Work on the controversial long-term project was intended to be full steam ahead this year.
The decision follows pressure on Christchurch City Council budgets and a proposed 13.24% rates rise, a December decision not to pursue asset sales, and a Government strategy to plan and fund a 30-year pipeline of infrastructure projects.
Christchurch mayor Phil Mauger welcomed the news.
He said yesterday the council had instructed its investment company Christchurch City Holdings Ltd (CCHL) in December to ask its subsidiary companies, including Christchurch Airport, where they could save money.
“Let’s heigh-ho for a bit. We’ve asked them to stop spending in some areas to help pay down the debt.”
Mauger said he was not sure how much had been spent on the Tarras project to date. Christchurch Airport already owns the land.
During yesterday’s regular council meeting, councillors approved the annual letter of expectations to CCHL, expressing concern at spending on the project, and the council’s inability to put money into it.
Christchurch Airport is three-quarters owned by ratepayers, through CCHL, and one-quarter owned by central government.
In its announcement, CCHL described the Tarras land as strategic, and noted that the growing Central Otago region’s need to accommodate resilience, economic growth and infrastructure had not changed.
CCHL chairperson Abby Foote said CCHL had been in discussions with the airport about the project over recent weeks.
During those discussions, CCHL emphasised the “capital constraints” the CCHL group was now under following the decision not to investigate asset sales.
As recently as December, Christchurch Airport’s Tarras project team said in an update: “Looking ahead to 2024, we expect work will continue to drill deeper and keep growing our understanding of the site and its capability.
“We expect at some point in the next 12 months that our board will consider whether the project is ready to proceed to the approvals phase, or whether further work is required to gather more information.”
The group also pointed to 8% annual population growth in the region.
The council’s letter of expectations said councillors were concerned that resources were being expended in developing the Tarras project, which had a low chance of being implemented in the next decade or longer.
“The simple fact is that the council will not be able to provide equity or debt funding to the CCHL group, as capital budgets over this time are oversubscribed and capital funding is constrained.”
It also said CCHL’s engagement with the council on progress with the project had “fallen short of our expectations”. Christchurch Airport is yet to comment. Strong visitor numbers to Christchurch mean the airport will pay the council a $19 million dividend this year, up from the $18.5m forecast.
Zella Downing, spokesperson for lobby group Stop Central Otago Airport, said the announcement of the slowdown was “a step in the right direction”, but seemed designed to take the heat off in the short term.
“There is no appetite in Central Otago for this airport, or for an influx of millions more tourists,” she said.
“But it’s clear from the statement that this is not a complete ‘stop’, and that Christchurch Airport will continue to work on this proposal in the background.”
The group would continue to fight the project, she said.
A School Strike 4 Climate spokesperson, Aurora Garner Randolph, said the airport plan was irresponsible, and no more time or money should be spent on it. “But we need to see a full cancellation of the project.”
Tarras resident Billee Marsh also hoped the plan would be more than slowed.
“I’m looking for the word ‘stopped’,” she said, adding that Christchurch ratepayers were “the ones carrying the can for it”.
Another local, Peter Jolly, said he had lived in Tarras all his life and “firmly” believed that an airport in the region was a positive step.
“I applaud Christchurch Airport for their forward thinking.”
In yesterday’s statement, CCHL said it did not expect significant amounts of capital to be spent on the Tarras proposition in the short term.