SOME REAL FACTS ABOUT THE AIRPORT EXTENSION

This week, we hoped that TV One News would give us the chance to provide some counter to the big bunch of spin all over the Dom Post recently. That was unfortunately not the case. The pilots, airline association and Steven Joyce have now all come out with serious doubts and concerns following the airport’s dump of 27 impact reports.

Steven Joyce sent this (quite hilarious) tweet in response to the news:

Steven Joyce's tweet following the Dom Post story
Steven Joyce’s tweet following the Dom Post story

It is quite heartening for us when the National and Green Parties both agree that this amounts to economic folly, and that it basically is a form of corporate welfare. It is, however, a more serious issue for the Mayor who has been quoted:

She [the Mayor] is confident the Wellington Airport runway extension will go ahead and be a game-changer for the local economy.

Contrary to the claims of critics, she says, there are airlines seriously interested in backing the project. And the business case will be so good the Government won’t be able to refuse its backing either.

It is also a serious issue for the Airport, as its own highly one-sided cost-benefit analysis (the peer review of NZIER as well as our own will soon throw some doubt on the fantastical $7 for every $1 spent figures) clearly states that the bulk of the cost should be borne by the taxpayer, something Joyce obviously doesn’t agree with.

The cost benefit analysis – note: NOT a business case, not even with all other 27 reports combined (they’re mostly for the Environment Court case which isn’t concerned with the business case but the environmental impacts of the project) – does not incorporate any of the many environmental and social costs as they ‘can’t be monetised’, nor does it include the obvious benefit to the airport from an increased asset base. It also bases all its numbers on the InterVISTAS forecast, which the Council’s own peer review has shown to be highly exaggerated, by about a factor of 5.

We look forward to a proper peer review by economists who will undoubtedly pick this document and its outrageous claims apart.

Until then, we will continue to read the 27 reports so as to be able to go to the public ‘consultation’ next week armed with good questions – yes, you will have exactly one week to read 27 reports in order to be heard! We hope that doesn’t put too many of you off and you will go to the open days to ask your own questions and provide feedback.

Despite the Airport continually claiming the false numbers that 80% of Wellingtonians are for the extension (even though 81% of long term plan submissions were against it), we believe that most of you would be appalled if you knew that you will take all the risks and pay for a hugely destructive project that a billion dollar multinational will get all the benefits for, without possibly ever seeing a single airline flying to Singapore… or Dubai… or LA… (definitely never all of the above).

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  1. There will be many Wellingtonian’s who consider that the extension runway would be a “good idea” and that it should be “built now.” Nothing will proceed without money and in the final analysis it will be the crux of the matter. So far, the Government will not fund the extension, and Infratil (2/3rd owner) have not indicated any interest in parting with shareholders monies, meaning that the good idea could well fall over. Who of those “good idea” supporters are prepared to part with hundreds of millions of dollars from their own pockets without a specified term of return on investment?

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