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Auckland Council has hired a Melbourne-based financial adviser to guide its potential sale of shares in the region’s international airport.
Auckland Council has appointed an Australian financial advice firm to guide the potential sale of the council’s shares in Auckland International Airport.
The sale of the shares is one of the measures promoted by Auckland mayor Wayne Brown to balance the council’s budget for the financial year beginning on July 1.
A prediction released last week put the gap between revenue and costs for the council at $325 million for the year, plus $50m of storm-related costs.
Auckland Council’s general manager financial strategy and planning, Ross Tucker, said a decision has not yet been made by the council on whether it will go ahead with any sale of its 18.09% airport shareholding.
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Any sale of council shares in the NZX and ASX listed Auckland International Airport Limited requires a decision from the council’s Governing Body in June.
However, Tucker said “it is prudent to have independent and preliminary advice” to inform the options councillors are considered and how any sale would be implemented.
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The council engaged Melbourne-based Flagstaff Partners to provide specialist advice following a “competitive request for proposal process”, Tucker said.
Flagstaff is expected to provide advice on execution strategies, timing considerations, and engaging brokers and investors.
He said councillors have been kept informed on the sale options, issues and process as part of annual budget planning through reports, briefings and workshops.
Public feedback on the mayor’s initial budget proposal favoured retaining the entire shareholding (34%), with 28% supporting a partial sell down and 25% in favour of selling all shares.
On Wednesday, the mayor signalled a softening of his earlier proposed cuts to the city’s social services and arts organisations.
Maungakiekie-Tāmaki ward councillor, Josephine Bartley, who was the only councillor to oppose Brown’s first budget proposal said she is cautious as to how the funding will be covered, which cuts will be softened and which cuts will continue.
However, Bartley said it was good that the mayor was listening to the overwhelming support from communities to stop the cuts, “but listening and acting are two different things”.
She said it still leaves a question over what priority areas council should fund rather than see as nice to have.
The mayor’s final budget proposal will come before councillors at a governing body meeting on June 8.