1 Oct 2008

Govt rapped for intervention over Auckland airport

7:59 am on 1 October 2008

Moves by the Government to limit foreign ownership of Auckland International Airport Ltd have been described as an unusual and unexpected use of power.

The Government raised the criteria for overseas investment applications this year, after a bid by the Canadian Pension Plan Investment Board for a 40% stake in the airport.

The bid was later vetoed by Cabinet ministers, Clayton Cosgrove and David Parker.

Parliament's Regulations Review Committee says in future, the Government should consult with relevant parties before making changes to decision-making criteria.

Committee chair, National MP Richard Worth, says the Government should have legislated, not regulated.

He says such changes should be the decision of Parliament, not the Government.