Government to The Rescue on Westhaven

The government has negotiated an agreement to secure public ownership of Westhaven Marina and Hobson West marinas, for the enjoyment of Aucklanders and visitors to the city, Prime Minister Helen Clark and Associate Finance Minister Trevor Mallard announced today.

"I'm delighted our government has been able to play a key role in making sure these marinas stay in local public ownership. They are an important and prized part of the Auckland waterfront and surrounding area and it was essential we ensured they were not lost to the city and New Zealanders," Helen Clark said.

"This deal will secure Westhaven and Hobson West marinas in public local ownership, ending speculation that the marinas will be lost forever to overseas interests. "

Trevor Mallard said the deal involved the Crown buying the Westhaven Marina and, subject to Cabinet approval, securing an option to buy Hobson West marina.

"It is not the intention of the Crown to own the assets over the longer term. The Prime Minister and I have been working closely with Auckland City mayor John Banks over the past three weeks, with the intention of on-selling the marinas to the council, subject to the council's public consultation process," Trevor Mallard said.

The Crown set a number of conditions around the land at Westhaven Marina which Auckland City Council has agreed to.

"The land at Westhaven is to remain in perpetual public ownership, so there is absolutely no doubt about continued public access to the  facilities at Westhaven Marina such as the boat ramps and Westhaven Drive. Auckland City will also need to consult with the Crown and  other stakeholders if it wishes to develop the land at Westhaven further."

The net cost to the Crown will be between $8m and $10m. Under the deal, the Crown will pay Ports of Auckland $52 million plus GST for Westhaven, with the option of purchasing Hobson West for $2 million plus GST. The final cost to the Crown will depend on negotiations with the council, and also on the council's public consultation. The sale to the Crown will be completed by June 2004.

Posted Mon 19 Apr 2004