The Case for Whenuapai Airport - Why Retaining Whenuapai Airport and Developing It for Commercial Use, with Ancillary Comprehensively Planned ...
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Submission to New Zealand Defence Force on Future Use of Whenuapai Airport Land The Case for Whenuapai Airport – Why Retaining Whenuapai Airport and Developing It for Commercial Use, with Ancillary Comprehensively Planned Commercial and Industrial Development, Is the Most Logical Future Use. Waitakere City Council Enterprise Waitakere Infratil Limited Te Kawerau a Maki
1 Recommendation That New Zealand Defence Force recommends to Government that the Waitakere City Council/Infratil proposal to develop Whenuapai Airport for commercial use, with associated industrial and commercial development is the most logical future use of Whenuapai. Waitakere City Council Enterprise Waitakere Infratil Limited Te Kawerau a Maki
2
The Case for Whenuapai Airport – Why Retaining Whenuapai Airport and
Developing It for Commercial Use, with Ancillary Comprehensively Planned
Commercial and Industrial Development, Is the Most Logical Future Use
The Crown has decided to vacate Whenuapai: Whenuapai already exists as Auckland’s second fully functioning
Air force to shift to Ohakea over a 5 year period International and Domestic airport:
Why destroy a value enhancing piece of Infrastructure?
The Minister of Defence is required to recommend to Cabinet by
the end of March 2004 the most logical future use of Whenuapai, The cost and time to upgrade is modest in commercial terms,
and the process for disposal of the airbase: and well recognised by Infratil which is providing the
The Government is seeking feedback on what future use or uses of development capital.
the site should be: The opportunity cost to the Auckland Region of destroying
New Zealand Force discussion document, October 2003. Auckland’s second and functioning Airport is considered
This is the submission of Waitakere City Council and interested significant. The cost and difficulty of creating a second airport for
parties: Auckland in the future, at another location, would be immense.
Waitakere City passed 11 resolutions in December 2002 Whenuapai as an airport can save the Auckland Region $341million
detailing its commitment to retain Whenuapai as an International in future transport costs:
and Domestic airport. Auckland regional transport model used to measure.
Waitakere City entered a partnership agreement with listed Whenuapai is more conveniently located for at least half of the
infrastructure investor Infratil Ltd, to provide the resources and regions citizens.
expertise needed to transform Whenuapai from a military to The Whenuapai land has no strategic value to Waitakere City if it
Commercial Airport, with associated commercial and industrial is not a commercial airport:
development. Waitakere City’s and the Regional Growth Strategy already
Enterprise Waitakere is a trust established to proactively identifies other areas of land for future industrial, commercial
encourage economic development within Waitakere City. and residential use.
Te Kawerau A Maki is the mana whenua of Waitakere City Land becoming available at Whenuapai as a result of the
The loss to Waitakere City resulting from the Air Force leaving Air Force withdrawal has no strategic benefit for the city,
Whenuapai is estimated at $230 million pa including 1647 jobs and unless a commercial airport is developed.
826 families: Unused Whenuapai Airbase will be a significant liability to the
NZIER report July 2003 owners and to the City, possibly for decades.
Counterfactual compares it to surrounding rural residential. Waitakere City’s development corridor is planned to proceed
Potential for significant social and economic disruption to a along the edge of the Metropolitan urban limit ( which Whenuapai
nascent City. is well outside) and along state highway 16 to the west.
The loss is equivalent to 135% of the City Council’s annual If not retained as an airport the Crown or Waitakere City can not
expenditure undertake any commercial or industrial development as a public
work:
NZDF is Waitakere City’s largest employer A designated operational airport offers the widest range of
Besides mitigating those losses, Waitakere wants to use the development options.
opportunity to build a future economic generator for itself and the Waitakere City and Infratil’s proposal envisages commercial and
North Western sector of the Auckland region: industrial development associated with a commercial airport.
Commercial Airports become economic generators by providing
enhanced connectivity to and from a defined region.
The Public Works Act disposal process must be followed if
Whenuapai is not retained as an airport. It could be decades
The Economic Impact of the US Airport Report, 2002 before anything is able to happen on the land, which also requires
demonstrates the value of airports. expensive remediation if it is not to be used as an airport.
Commercial Airports attract commercial/private sector It is estimated that to dispose of the runway would require the
investment removal of 46,000 truckloads of concrete. This equates to 200
Why destroy a valuable piece of infrastructure which has truck movements per day for a year.
the potential to drive economic growth, improve traffic flows, There is uncertainty, delay and loss of control for the Crown and
employment and assist tourism? Waitakere City if airport operations cease and the Public Works
Whenuapai is situated at the center of New Zealand’s fastest Act disposal process is invoked.
growing area:
The North West Auckland Region is New Zealand’s fastest
growing now and for the future.
As many people live within a 16km radius of Whenuapai Airport
(500,000) as do within the same radius of Mangere Airport.3
Whenuapai as an airport can redress economic loss to the North Infratil and Waitakere City are essential partners for success:
West Auckland Region and add more jobs than those being Infratil is a respected international advisor and investor in
removed by the Crown: airports.
BERL report 2002
Infratil has access to capital, long term commercial vision,
The Economic Impact of U.S. Airports, 2002 and international experience and success at Airport
Mangere will face complementary competition: development, including mixed civil and military
Mangere is a long haul airport charging aircraft on a weight basis. Waitakere City has developed and implemented world
Whenuapai will have a different model and the ability to relieve class sustainable city policies and practices
Mangere of the low value aircraft movements. Wellington Airport’s successful rejuvenation is a model to follow:
The rejuvenation of the facilities at Wellington is a testament
Competition must enhance the attractiveness of the region,
and New Zealand to Airlines and travellers alike. to Infratil’s skill in the successful management of Airports.
Competition will be good for both Whenuapai’s and Mangere’s
Wellington Airport’s enhanced relationships with its neighbours
customers. highlight best practice behavior for a public/private
infrastructure asset.
The Whenuapai airport proposal represents a sound commercial
model. The airline market is moving in the direction that Whenuapai Only Development Dollars at risk are the commercial investor’s:
Infratil will contribute all the development capital required.
will take:
Low cost no frills air travel is a successful and profitable Waitakere’s partnership with Infratil allows the City to contribute
business model capital and acquire a shareholding only if it chooses to do so.
Regional short haul is strong for low cost no frills Infratil is realistic about the potential costs and capital it must
Air travel is growing strongly, creating the need to build provide for a successful redevelopment of Whenuapai as a
new airports and/or expand existing ones. commercial airport.
hub and spoke model increasingly complemented by point The 5 year phase down is a perfect window to test the thesis:
It’s not unusual for military and civilian activities to co-exist,
to point
with proper safeguards.
Early stage positive interest from International Airlines.
Any other use for the Whenuapai land could be decades away
Public support for Whenuapai as an airport is high:
Recent region wide polls show strong public support for
Whether or not commercial operations can begin during the
an airport at Whenuapai five year period, it makes sense to test the commercial airport
model first, since choosing any other option involves destruction
Whenuapai as an Airport provides positive assistance to the NZ of the existing airport infrastructure.
Transport Strategy, the Tourism Strategy, and the Sustainable
Cities programme:
The 5 year period allows time to test the commercial viability.
Tourism; Low cost no frills will be particularly important in driving All other options still remain open if the commercial airport
traffic from New Zealand’s biggest inbound market, Australia. cannot be made to work.
Tourist ventures in the north and west will benefit from an The most logical future use for Whenuapai is:
airport at Whenuapai. As an Airport with ancillary surrounding Commercial/Industrial
Transport; $341m benefit for no input. and Urban development.
Sustainable cities; local jobs, less traffic congestion, less The best process for disposal is:
environmental impacts on the region. For the Crown to act both proactively and transparently in
Waitakere City’s local Iwi support Whenuapai’s redevelopment partnership with Waitakere City and Infratil to produce the
as an Airport: best outcome in a timely manner.
Te Kawerau A Maki, the city’s mana whenua, are strong
supporters of redeveloping the Airport, and have major
concerns over intense urbanization of the land, especially in
relation to their traditional “food basket” the upper Waitemata.
Partnership is essential for success:
The Crown working with Waitakere City, and the Region will
maximise the economic and social opportunities and minimise
liabilities and delay.4
As many people live within a 16km radius of Whenuapai Airport as within
the same radius of Mangere Airport
REGIONAL POPULATION DENSITY
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Contents
Waitakere City Council Submission 7 5. Economic 14
a) The Regional Economy 14
1. Introduction 8 i) Prescriptions for Growth 14
a) Air Force Leaving Whenuapai 8 ii) Collaboration Required 14
b) Significant Economic Loss 8 iii) Traffic Congestion 14
c) What Is Required to Address these Losses? 8 b) The Auckland Regional Economic Development Strategy 14
d) Airports Are Catalysts for Economic Development 8 c) The Waitakere Economy 15
e) Partnership Approach with Crown 8 i) Local Jobs Required 15
f) Connectivity and Competitive Advantage 9 ii) A Breakdown of the Waitakere City Economy 15
iii) Waitakere Growth Prospects 15
2. Addressing the NZDF Discussion d) Whenuapai Airport 15
Document 10 i) Complementing Current Development 15
a) Options 10 ii) Connections with Other Cities 16
b) Considerations for Evaluation 10 iii) Employment Opportunities 16
c) Additional Considerations which NZDF Will Evaluate 10 e) The BERL Report 16
d) Desired Outcomes 10
e) Waitakere City’s Objectives for Whenuapai 10 6. Infrastructure 17
a) The Airport Already Exists 17
3. The Logical Choice for i) Challenging a Monopoly 17
the Government 11 ii) A Once Only Opportunity 17
a) The Disposal Process 11 b) Seeking to Leverage the Region’s Natural Advantages 17
i) Disposal under the Public Works Act 11 c) The New Zealand Tourism Strategy 17
ii) Creation of Airport under the Airport Authorities Act 11
b) Fragmentation of the Land has Risks and Cost 7. Strategic Fit 18
to Waitakere Ratepayers 11 a) Consistency with Local and Central Government Policies 18
c) Local and Regional Planning Will Affect Outcomes 11 b) Government Initiatives for Auckland 18
d) Commercial Airport Option Enables Reuse of Asset c) Auckland Regional Growth Strategy 18
and Adds Value 11
d) Regional Growth Strategy Implications for Whenuapai 18
e) Quick and Efficient Exit Process with Widest Options 12
e) Northern and Western Sector Agreement 20
4. The Case for Retaining the Existing Airport f) Fastest Growing Region in New Zealand 20
and Developing It for Economic Use 13 g) Waitakere City’s Sustainable Growth Strategy 20
h) Population 21
i) Low Wage Work Force 21
j) Waitakere City’s Development Strategy 21
k) Waitakere’s 50 Year Development Vision 21
l) The Northern Strategic Growth Area 21
m) Metropolitan Urban Limit 216
8. Transport 23 12. Alternative Options 30
a) Impact on North Shore and Rodney 23 a) Public Work and/or Urban Development 30
b) Traffic Demand Management 25 b) Industrial/Development Site 30
c) Public Transport Stimulated 25 c) Rural Residential Sites 30
d) Benefits to Regional Road Users from Having d) Combination of the Above 30
an Airport at Whenaupai 25
e) The Major Variables Affecting the Results Are: 25
f) Investing for Growth: the Government 13. Community Views 31
Transport Package for Auckland 26
a) Public Opinion Surveys 31
9. Partnership 27 b) Iwi 31
c) Business Community 31
a) Cooperation and Collaboration Is Essential 27
d) Opposition to Proposal 31
i) New Local Government Powers and
Responsibilities 27 i) Comment on Expressed Opposition 31
ii) Working Together 27 ii) Residents under Flight Paths 32
b) Crown Decision Will Change Council’s iii) Other Grounds for Opposition Revealed
Growth Planning 27 in TNS Survey 32
c) Existing Airport Gives Land Strategic Value 27
14. Conclusion 33
d) Existing Growth Management Framework 27
a) Recommendation 33
10. Experience 28
Supporting Submission of Infratil Limited 34
a) Commercial Partnership with Infratil 28
b) Airport Expertise 28
Supporting Submission of
c) Ownership and Capital Resources 28
Te Kawerau a Maki 57
d) Relationship Track Record and Integrity 28
e) Experience With “Joint-Use” Civil-
Military Airports 28
f) Waitakere City Council Experience 28
11. Defence Needs 29
a) Operational and Wider Security Needs 29
b) Civil Defence Issues 29
i) CDEMG 29
ii) Trained Resources 29
iii) Emergency Management 29
iv) Risk Management 29
c) Emergency Military Uses 297
Waitakere City Council Submission
Year commercial operations ceased at Whenuapai 1966
People employed at Whenuapai 1420
Number of years before the Airforce departs 5
Size of land of base 311 hectares
Kinds of aircraft using Whenuapai Hercules, naval helicopters, Air Force 727’s, Fokker
Number of take offs and landings a year at present 22,000
Noise levels Commercial aircraft are quieter than military
aircraft and fewer flights are envisaged initially
How does the city recognise the airbase? Through the District Plan
What is the underlying zoning of land? “Countryside living”
Number of people living within 16km of Whenuapai 453,000
Number of people living within 16km of Mangere 442,000
Proportion of Waitakere residents who work outside the city 60%
Who is providing the development capital? Infratil8
1 Introduction
a) Air Force Leaving Whenuapai commercial and industrial areas. For this competitive advantage
Following a Cabinet decision to consolidate RNZAF activities to function, it is essential not to destroy the airport, creating
at Ohakea, the Government has announced its decision to bare land requiring considerable and costly remediation with
undertake a staged withdrawal of the Air Force from Whenuapai no particular features to distinguish it from any other available
over a five year period. land. Waitakere City already has plans for other areas to be
The New Zealand Defence Force is conducting a consultation used for industrial, commercial and residential activity which
process on four main options for future use of the land. are consistent with regional policies to contain urban sprawl.
These include converting the airport to commercial use, d) Airports Are Catalysts for Economic Development
public work/urban development, industrial/commercial uses Waitakere City is an “edge city” characterised by its post-war
and rural/residential. The Minister of Defence is required by suburban development with reliance on the motor car and the
Cabinet to recommend to Cabinet the most logical use of separation of the functions of a city, such as work-places remote
Whenuapai and the process for the disposal of the airbase from living areas. For Waitakere City this means that over 60%
by the end of March 2004. of its workforce commute out of the city for employment.
b) Significant Economic Loss Employment within the city is dominated by low-paying service
Whenuapai Airport is located within Waitakere City. As a military type jobs.
installation Whenuapai Airport has contributed significantly to the Over the last 10 years Waitakere City Council has sought to attract
social and economic well-being of Waitakere City for many years. higher-paying jobs to suit its predominantly blue-collar workforce
The withdrawal of the Air Force will have a significant negative through targeted cluster development centred around clear
impact on the economy of Waitakere City, unless alternative competitive advantages. This has begun the positive transformation
uses are found to address this loss. to a higher rating base, which has allowed Waitakere City to fund
Waitakere City and its economic development agency, a broader range of amenities at a higher standard.
Enterprise Waitakere, commissioned the New Zealand Institute Waitakere City’s primary objective is to develop an economy and
of Economic Research to undertake a social and economic society that supports sustainable urban development by reducing
impact assessment of the impending closure of the airbase. reliance on the motorcar, providing local employment opportunities
In summary that report found the following: and addressing the financially unsustainable situation of a City that
has evolved without a solid commercial sector.
The withdrawal of the Air Force will result in a loss within
Waitakere City of $230 million per annum. Commercialisation of Whenuapai Airport supports the Regional
Growth Strategy and Central Government investment in
The loss of the Base’s 1,061 (full-time equivalent) jobs would Auckland transport infrastructure through the creation of local
result in the loss of an additional 586 jobs in Waitakere City. employment and local economic stimulation. This helps address
The two principal contractors employed by the Base expect the economic issue of Auckland’s urban sprawl and its effect on
to make 90 staff (75 full-time equivalents) redundant following travel demand patterns.
its closure. Other local businesses are likely to experience a
short-term decline in sales, until the houses currently occupied Through a Crown decision to relocate from Whenuapai Airport, the
by Base staff are reoccupied. city is now facing an estimated $230 million per annum in economic
loss. Waitakere City is seeking the chance to reinvent a community
c) What Is Required to Address these Losses? through the reuse of an existing infrastructure asset.
Making more industrial, commercial and residential land available To achieve this aim, the cooperation of central, regional and local
is not the best way of mitigating this loss. The City government is required to implement a comprehensive plan for
is already planning to ensure that there is a staged release of addressing the economic, social and environmental loss, in a
industrial and commercial land in its planned new growth areas, manner that benefits the Auckland region and New Zealand as
which are identified in the Auckland Regional Growth Strategy. a whole.
Making land available at Whenuapai for these purposes will provide The retention of Whenuapai as an airport is the only mechanism
no particular reason for businesses to relocate to Waitakere City, available to allow comprehensive planning and development
other than those who would naturally relocate there anyway. over time within the existing national, regional and local
The NZDF wish to dispose of the Air Base provides a unique planning frameworks.
opportunity to use this asset in a way that attracts new businesses
to the region through reuse of the existing airport asset as a e) Partnership Approach with Crown
commercial airport and for ancillary industrial and commercial uses. Recognising that it does not have the access to capital or other
In addition to direct benefits generated by a commercial airport resource on a scale that would enable this to happen in the short
operation, this will stimulate economic development by the creation term, Waitakere City has initiated a partnership with Infratil
of a new competitive advantage for planned new and existing Limited, a listed Wellington based company to provide capacity and
expertise in developing infrastructure alongside local government.9 With private sector funding mechanisms in place what is now required is the development of a partnership with the Crown to more efficiently realise the value (of the asset and to the wider community) of the existing military airport. f) Connectivity and Competitive Advantage The commercialisation of Whenuapai Airport will aid the competitive advantage of the North West of Auckland by adding an additional dimension of connectivity. Waitakere is the home of super yacht construction, TV production and film making. North Shore excels in electronics and ICT, Rodney District in horticulture and agriculture. Each of these sectors are export focussed, earn significant FOREX and rely on connectivity to their markets. These and other business sectors will be significantly advantaged by having an airport in their immediate area. Tourists both inbound and outbound will have a new point of access to the country and to the Auckland region and beyond forming a network of leisure and recreation, and benefiting tourist oriented businesses in the north and west.
10
2 Addressing the NZDF Discussion Document
The NZDF discussion document identifies options for the site and e) Waitakere City’s Objectives for Whenuapai
describes both considerations for evaluation of the options, and a With the closure of a large military industrial facility there are
range of desired outcomes. a number of issues of particular concern for the Council.
These are as follows: These are as follows:
1. The social and economic impacts of the closure are
a) Options addressed and mitigated.
Commercial Civilian Airport
2. The transition to future uses is commenced as soon as
Another Public Work and or Urban Development possible so that the adverse impacts of the closure of the
Industrial/development site base can be progressively addressed.
Rural residential sites 3. Future development of the land is carried out in a planned
A combination and comprehensive manner and maximises and compliments
the future development of the Waitakere City’s Northern
b) Considerations for Evaluation Strategic Growth Area.
take account of NZDF operational and wider security issues; 4. Future development does not compromise Waitakere City’s
protect the Government’s wider interests in the property; or region’s growth strategy.
use existing statutory processes in a transparent manner; 5. That a potential future economic growth engine is not lost
provide a quick and efficient exit process for the NZDF; and without being tested.
provide a fair market return to the NZDF. 6. The infrastructure liabilities that go with the land are
addressed in a manner that allows for the ongoing use of
c) Additional Considerations which NZDF Will Evaluate physical resources without impacting on the ratepayers of
Amenity, facilities the city. The existing infrastructure that services the base
(Continued use of swimming pool, playing fields, golf course, is past its economic life and likely to need replacing at an
availability of airfield for civilian flights). estimated cost of $20 to $30 million.
Noise Disturbance 7. The Government and Waitakere City adopt a partnership
Impact on those living and working close to the airport. approach to future use of the base so that protracted and
unproductive litigation is avoided. The complex issues and
Infrastructure Intentions and Plans liabilities that go with the land and potentially fall to the
Impact of possible upgrade of sewerage services along Council to address should the land holding be fragmented,
Hobsonville corridor to cope with projected growth. need to be recognised by the government, and managed to
Environmental Considerations avoid cost being passed to the City’s ratepayers.
Impact on the Upper Waitamata Harbour. Historical and 8.The impacts of the closure of the military airport on the civil
architectural considerations. Views and appearance of the site. defence capabilities of the city and the region are considered
and addressed.
Iwi and Maori Representation
9. The government makes a timely decision so that meaningful
Views of interested groups. progress can be made in addressing the social and economic
Local Economic Benefits impact of the Defence Force’s departure, and so that the City
Contributions to local and regional economy and jobs. can take into account implications for its long term development
planning, and so that the community is given as much certainty
d) Desired Outcomes as possible of the outcomes.
Provide for the sustainable economic development of the north
west Auckland region and the Auckland region generally;
Be consistent with relevant government policies, including the
New Zealand Transport Strategy, the Tourism Strategy 2010, and
the Sustainable Cities Programme; and
Be consistent with other relevant or significant programmes
in the vicinity of Whenuapai; such as Housing New Zealand
Corporation’s Hobsonville initiative; planned highway and harbour
crossing extensions and territorial authorities’ long term plans.11
3 The Logical Choice for the Government
The following sections will put the case for the airport’s retention b) Fragmentation of the Land Has Risks and Cost to
and in doing so will respond to the evaluation considerations put Waitakere Ratepayers
forward in the NZDF consultation document. (However, some Without the airport, neither the Crown nor a local authority can
of these considerations can only be evaluated if fully developed guarantee to undertake industrial or commercial development
proposals for an option are put forward and assessed under the as a public work. The land must be passed to either former land
Resource Management Act regime.) Preceding that is a brief review owners, through the Treaty of Waitangi Settlement mechanism,
of the disposal options available to the Crown that have major or disposed of directly to the open market. Disposal through offer-
impacts on the final decision that the Crown can make. back or to open market creates significant issues for the City.
a) The Disposal Process Firstly, it presents some strategic development issues as the
The NZDF document identifies a number of potential options for land sits outside the Region’s planned growth area and the ability to
the future use of the land. However in reality the future uses of the manage desired outcomes is constrained by the individual owner’s
Airport is determined by the disposal process as the government aspirations and the provisions of the Resource Management Act.
has stated that it will use existing processes to affect the disposal Also, the land has been held and developed by the Crown under
of Whenuapai. regimes that have not allowed the Council to require financial
Two options have been identified: contributions, or rates. If the land is disposed of under the Public
Works Act in a manner that allows the land to be fragmented
(i) Disposal under the Public Works Act. without regard to the residual liabilities attributable to the way the
(ii) Creation of an airport under Airport Authorities Act and land has been legitimately developed and held by the Crown for
transfer of the base under this mechanism. Defence purposes, there are potentially significant costs that could
i) Disposal under the Public Works Act fall on the ratepayers of Waitakere City. These would normally have
The Crown can decide if it wants the land for another public work, been paid for by a developer or by the normal rating process but
or dispose of it under the Public Works Act. There is effectively could now fall on Waitakere City ratepayers.
only one decision for the Crown to make under this legislation. c) Local and Regional Planning Will Affect Outcomes
Does it have another public work use for the land? All non-public work or non-airport options rely on the local authority
If the Crown decides that it does not have a public work regulating land uses to achieve industrial, commercial or urban
requirement, then the local authority can decide if it requires the residential outcomes. Within a regional planning framework that
land for a public work. If the local authority does not require it for sees the Whenuapai Airport land located outside the identified
a public work, it develops the regulatory framework under which growth area for the City for at least the next thirty to fifty years,
the land is developed. The Crown then loses control or influence it would require a very compelling case for the regional and local
over any future outcome under these existing processes. authorities to depart from a regional growth strategy developed
ii) Creation of Airport under the Airport Authorities Act since 1993.
Disposal under the Airport Authorities Act to a local authority d) Commercial Airport Option Enables Reuse of Asset
consortium, allows the Crown and the local authority to and Adds Value
undertake comprehensive planning for the future of the site with Only by retaining Whenuapai as an airport can ancillary industrial
the greatest options and the greatest level of control to achieve and commercial uses be developed around it.
the outcomes identified in the Crown’s consultation document.
Decisions to urbanise the land should the airbase be closed, Disposing of Whenuapai as an airport provides a different statutory
including commercial or industrial uses, are not decisions that planning framework by virtue of allowing the site to be designated
the Crown can make under the existing legislative framework, for airport uses including those commercial and industrial uses
unless an airport authority is established and the Crown retains ancillary to an airport. Mangere Airport sits outside the Metropolitan
an interestin that authority. Urban Limit. Commercial and industrial development around this
airport has provided significant competitive advantages to the
In order to develop industrial or commercial uses, the Crown growing businesses around it.
only has one option – the airport option. In order to achieve its
identified outcomes, there is also only one option – that is to This process also provides the mechanism by which a smooth
retain Whenuapai as an airport. By retaining Whenuapai as an transition of uses can occur. It provides for commercial operations
airport, industrial and commercial uses ancillary to the primary to scale up as military operations decrease.
airport activity can then be developed over time, in a planned
and integrated manner, by virtue of the planning and legislative
framework available under that option. The five year staged
withdrawal of the airforce provides the opportunity for
commercial operations to gain consent through the
Resource Management Act process.12
e) Quick and Efficient Exit Process with Widest Options
The Airport option is the quickest and most efficient disposal option
because:
It has the least legal uncertainty and risk.
It allows the greatest deal of control for both the local authority
and the Crown in partnership.
It creates the least problems in terms of the regional and local
planning framework.
It provides for a managed transfer of the asset from Defence
while providing for continued use.
It provides the most efficient method to address the infrastructure
liabilities that go with the land.
It represents the least risk to Waitakere City Council
It represents the least risk to the Government.
It is the only option supported by Waitakere City Council.
.13
4 The Case for Retaining the Existing Airport and Developing
It for Economic Use
The Waitakere City case for commercialisation of Whenuapai Airport
is covered in the following sections.
Economic – an economic engine for the whole North West Sector
of the Auckland Region
Infrastructure – the airport infrastructure already exists
Strategic Fit – how only this option fits with the regional
and central government strategic requirements
Transport – convenience, cost saving, congestion
Experience – Infratil, the Wellington experience
Partnership – the value of working in partnership
Defence Needs – keeping the options open
Alternative Options – consideration of alternative uses
Community Views – positions for and against the proposal14
5 Economic
a) The Regional Economy iii) Traffic Congestion
Auckland has been one of the fastest growing areas of the New Transport congestion remains the key bottleneck to growth.
Zealand economy over the past decade with real economic growth The economic cost of congestion in Auckland has been
averaging 3.7 per cent, which is above the national average. estimated at around $1 billion per annum. Improving the
However, true economic growth requires that the total income of transport sector will provide a solid fillip to growth and enhance
society must rise more rapidly than the population. A better target is productivity, which, in turn drives up living standards.
per capital regional GDP growth. Over the last decade, the average Progress is being made. New trains have been purchased,
growth rate of per capita GDP in the Auckland region has been the existing fleet has been refurbished, the Britomart Centre
below the national average. has been opened and improvements have been made to the
i) Prescriptions for Growth infrastructure of the road system with, for example, the Grafton
There are two standard prescriptions for increasing the region’s Gully product and the widening of the Southern Motorway
growth rate. The first is to add more inputs (extensive growth). between Symonds Street and the Newmarket Viaduct.
In other words, we need to add more workers or we need to add But more needs to be done in terms of adding to infrastructure,
more capital equipment. The second prescription is to improve the identifying appropriate pricing mechanisms and public transport
efficiency of the production process (intensive growth). In short, initiatives. Whenuapai represents one such opportunity.
do things smarter and better. It is this form of growth that fosters Stronger growth will, in turn, place pressure on land resources.
higher per capita incomes. Typically this means calls for innovation, Population growth may have positive implications for the economy,
better education, better infrastructure, better quality jobs. but Auckland’s rapid growth has exerted pressure on the land
Local and central government can facilitate the virtuous growth available in the region for residential and commercial development,
circle because it can provide some services at a lower cost than transport and infrastructure. Any future development options
the private sector. Free market principles do not work in some recommending more residential and/or industrial development
areas, necessitating intervention. In such cases the benefits of must be considered in this context.
activities are diffused through to the economy as a whole as the The Auckland Regional Growth Strategy strongly promotes land
social rate of return of some activities, such as education, use intensification to minimise the negative effects of growth.
exceeds the private rate of return. This involves concentrating growth around town centres and
The challenge for policy-makers in both the local and central major transport routes to create higher density communities while
government area is to foster an environment conducive to ensuring that beaches and green spaces are protected.
stronger growth and living standards, while balancing social
objectives at the same time. b) The Auckland Regional Economic Development Strategy
The communities of the Auckland region are ready for sustainable
ii) Collaboration Required economic development under a strategy which identifies where
Greater collaboration is required and a start has been made. we are now, where we want to be in the future and how we are
For example, central government has recognised the need for going to get there. The strategy not only communicates a set of
a coordinated approach to economic development with closer priority activities, it provides a vision, leadership and direction to
integration between the various agencies involved. Central help guide decisions about how to use limited resources and how
government and local government authorities in Auckland are to manage conflicts and trade-offs.
coordinating activities in several workstreams under the banner
of the Sustainable Cities Programme of Action, launched in The strategy framework combines eight elements which connect
Auckland earlier this year. the region with the world through an outward focus and improved
regional performance on a platform of exceptional people,
One of the workstreams includes joint central/local government cultures, environment and infrastructure.
implementation of the Auckland Regional Economic Development
Strategy. Other recent regional initiatives have included the Of particular interest to this submission are those strategies that
development of a Business Location Strategy and the formation focus on improving the Region’s connectivity with the outside
of the Joint Officials Group to investigate transport funding in the World and encourage the building of relationships with and
Auckland region. The Tertiary Education Commission is also success in, overseas markets. Initiatives that attract Foreign
working with regional groups to promote a collaborative approach Direct Investment in key sectors and that link priority industry
to skills provision in the region. sectors with key markets.
The key is to get the conditions right so that businesses can The region’s growth is dependent on its export performance.
prosper. In looking at the Auckland region, some particular Therefore the strategy encourages dynamic, well-prepared
issues can be identified as restraining business prospects. companies which are exporting successfully and focuses on
These include congestion, a lack of co-ordination across companies and sectors with the potential to lead improved
interested parties, and skill shortages. export success.15
In summary, productivity growth remains critical to raising living other parts of the Region. Most businesses deal directly with
standards. Population enhanced growth does not add materially the public, with only 31% selling mainly to other businesses.
to living standards. While the pie expands so do the numbers iii) Waitakere Growth Prospects
seeking a slice. Over the past decade, the Auckland region’s Development prospects for a modern economy depend on
out- performance of the national average has come entirely from the quality of the workforce and the tools they have available.
population growth rather than doing things smarter. If the Region Specifically, an educated workforce and access to information,
is to continue to prosper it needs to manage limited resources, communication technology and connectivity are crucial.
infrastructure, education of workers and the nature and way it Business size and type also affect the prospects of the
does business, better. economy to adapt to changing circumstances and requirements.
c) The Waitakere Economy The reality is the Waitakere City economy has not performed
i) Local Jobs Required well in these crucial areas impacting negatively on the City’s
Waitakere City accounts for 15% of the Auckland Region’s overall economic performance.
population, but generates only 8% of the Region’s gross domestic Waitakere City is on Auckland’s periphery, so a key requirement
product and jobs. Because of its lower ratio of jobs to population, is transportation links for goods, customers and employees both
more than half of the Waitakere work force still commutes to jobs inbound and outbound. After a period of negative growth the
in other Cities of the Region. This creates a variety of negative Waitakere’s economy expanded 1.7% over the year to March 2002
economic, environmental and social impacts. The City needs to and while the economy expanded further to March 2003 this still
generate more local jobs, which means it needs more economic lagged significantly behind the regional growth.
development. Factors impacting on the City’s growth prospects have been:
ii) A Breakdown of the Waitakere City Economy The defence sector declining
Until recently the City was mainly a mixture of agriculture,
horticulture, dormitory suburbs and a small manufacturing sector.
Some labour intensive industries relocating overseas
Population growth and urban sprawl have stimulated local retail, The slow recovery of the construction industry despite rising
construction and service industries but displaced more added value house demand
sectors such as agriculture and horticulture. Manufacturing has The industries that are growing rapidly are still relatively small
been gradually declining while the services sector generally has
been growing as it has been globally. The City needs to improve its accessibility to markets in order
to present investors with a valuable point of differentiation.
Most of the 11,500 businesses in Waitakere City are in the
service sector. Within this sector, business and financial services, In response to this situation the City Council has developed a
construction and retailing have the greatest number of businesses draft Economic Development Strategy which integrates with
accounting for 68% of all businesses located in the City. This in regional initiatives and specifically sets about addressing some
itself presents a fundamental challenge to the local economy as of the fundamental issues/weaknesses impacting on the City’s
these industries are more prone to the affects of market volatility. economic performance. A copy of this draft strategy is attached.
Manufacturing accounts for 10% of Waitakere City businesses The strategy acknowledges the importance of Whenuapai airport
with just over 1,000 business units. Waitakere manufacturers are to the health and wellbeing of the City.
particularly strong in textiles and clothing, wood and wood products, d) Whenuapai Airport
paper products, plastics and boat building. The clothing and textile i) Complementing Current Development
sector has been impacted significantly by the removal of tariffs over The development of a commercial airport at Whenuapai will
the past 5 years. complement the development of the economies in Rodney District,
Property and business services has the highest number of business North Shore City and Waitakere. It will complement the Housing
units in the City with 25% of the total but employ only 10% of the New Zealand planned development at Hobsonville, through
City’s working population. supporting local job creation. It will also complement the planned
The West is well known for its long association with viticulture and significant commercial and industrial centres within the areas of
horticulture, however, with the increasing urban sprawl many of Waitakere already identified for urban growth. Redeveloping the
these businesses have moved elsewhere in the region/country. airport land for other purposes will make it extremely difficult for
the Auckland region to ever develop a second airport given the
Waitakere City’s economic fortunes are closely linked to the near impossibility of acquiring sufficient land in an appropriate
success of the Auckland Region as a whole. However, Waitakere area and obtaining the necessary consents for a new airport.
City businesses tend to be smaller and less export focused,
leaving them more susceptible to change in local and regional The success of modern economies relates directly to the degree
conditions. Waitakere City retailers and service providers depend that the economy connects to the outside world via networks.
heavily on the spending power of local customers employed in Networks need to be viewed in “multiple ways”; physically, socially,
locally, regionally, globally, between knowledge and creative16
business, and virtually, through telecommunication technologies. e) The BERL Report
An airport provides another level of connection. A commercial In July 2002 Business and Economic Research Limited (BERL)
airport is an important piece of infrastructure that will supplement undertook a study of the potential benefits of a rejuvenated
and support and develop the nascent economy of Waitakere City Whenuapai Airport (see appendices). The report found that
and the north west region. the direct impacts of additional inbound overseas visitors to the
ii) Connections with Other Cities region could generate up to 1,200 FTE’s, with an additional 800
The Whenuapai area is well connected with other regional business FTE’s as a result of the airport operation itself. The report also
centres and in particular connects the creative trades workforce identified the potential of Whenuapai to expand the infrastructure
of the Waitakere area, the hightech industries of North Shore City, base of the north west sector of the Auckland Region providing
and the agrarian export sector of Rodney District. The Whenuapai new dimensions and a growth node for economic activity and
site provides an opportunity to specifically design, develop and development. Commercial operations at Whenuapai would provide
integrate an economic hub, and a gateway into nearby business a major stimulus to business service enterprises to locate in the
areas. Over time industrial and commercial activities ancillary to “Northern Growth Zone” as well as a major boost to tourism,
the airport activity can be developed, but only if a commercial technical jobs, and logistics industries.
airport is given the opportunity to develop.
A commercial airport would help attract and develop targeted
clusters of businesses in the planned new growth areas of
Waitakere City, North Shore and Rodney District. It would help
raise the profile of the area by giving it an international address,
which will make it attractive to businesses with an export focus.
It will also facilitate trade exports within the Australia/Pacific region
by introducing competition into the airport market.It may also assist
with the attraction of foreign direct investment.
iii) Employment Opportunities
Whenuapai Airport and related developments will create major
employment opportunities and generate financial benefits.
There is significant global evidence that airports generate jobs
not just at the airport, but also encourage the nearby location
of industries that benefit from close proximity to such ports (for
example see appended Airport Council International Report).
It is relatively simple to switch from the present military airfield
to a civilian one. All of the other options advanced are likely
to cost more than developing the airfield, could be located
elsewhere, will not deliver comparable benefits, or cannot be
readily and certainly achieved due to the complex disposal
procedures required for the land to be used for anything other
than an airport. Importantly, only the commercial airport option
has the ability to directly and quickly mitigate the impacts of
NZDF’s withdrawal from the City.
Whenuapai would add considerable marginal economic benefit
to all those existing businesses within a 16km radius.17
6 Infrastructure
a) The Airport Already Exists leverages natural advantages. The existence of a functioning
i) Challenging a Monopoly airport at Whenuapai provides the critical point of difference
Auckland has only one operating commercial airport, located at for a networked urban form that retains and strengthens the
Mangere, a location which has become increasingly difficult to elements of harbour life and lush setting, social cohesion and
access, particularly for passengers from the fast growing north amenity, and economic dynamism and infrastructure efficiency.
and west of the Auckland region. These customers can spend Compared to this, the alternative of destroying a functioning
twice as long getting to Mangere airport as flying from Mangere airport and facilities to create more bare land in Waitakere City
airport to Wellington. would be an unexciting outcome, creating ownership and planning
Mangere is a monopoly, owned and operated by a company and liability issues that are likely to see the land remain unused
whose principal motivation is to deliver the best possible returns for decades.
to its shareholders. Predictably, Auckland International Airport Ltd
opposes the development of a competing commercial airport at c) The New Zealand Tourism Strategy
Whenuapai. Nor is it likely to contemplate creating a second airport Towards 2010: Implementing the New Zealand Tourism Strategy
elsewhere in the region. Its plan to cope with growth is to build a identifies six fundamental components focusing on the sustainable
second runway at Mangere, at a cost of several hundred million development of tourism in New Zealand, including:
dollars. Monopolies commonly attempt to exploit their monopoly Focusing on quality
position, particularly if the barrier to entry for a potential competition Sustainability of infrastructure
is very high, as would be the case if another operator had to acquire
land and build a new airport.
Ensuring the sustainability of natural, business and social
environments.
ii) A Once Only Opportunity
The withdrawal of the Air Force from Whenuapai Airport creates The strategy identifies that providing the infrastructure required to
a once only opportunity to establish a second commercial airport for support tourism growth and development is a key challenge to the
the Auckland region for a fraction of the cost that would otherwise long term sustainability of the tourism industry. One key aspect
be involved, by making best use of existing assets. It is not a simple of this infrastructure will be air services to ensure tourist access
issue of providing sufficient capacity to handle all commercial flights to and within New Zealand meets market demands both now and
for the next 50 years. Whenuapai Airport will complement the into the future. International visitor arrivals are growing at an annual
capacity of Mangere in a manner which provides the best outcomes average rate of over 6%. This means tourist numbers could easily
and choices for the Auckland region, including competition, more double in 10 to 12 years.
desirable traffic flows, and greater convenience. A commercial airport at Whenuapai has the potential to widen the
This is not an issue about whether or not another airport operator tourism base of the country, especially as the airport will help to
can build new facilities to meet future demand. It is about using an attract budget airlines. It also provides an alternative entry point
existing resource as a catalyst to enhance the economic growth of to the Auckland Region, close to many iconic landscapes and
north west sector of the Auckland region, retaining and developing experiences upon which New Zealand tourism is marketed,
an airport in a location more convenient for half the people in the such as the west coast beaches. Alternative uses for the air
Auckland region, and creating valuable benefits in terms of regional base will not generate the same benefits as a commercial airport.
transport flows and as an attractor to business. Residential and rural residential development will not assist with
meeting the objectives of the Tourism Strategy.
Testing the viability of a commercial operation is the most sustainable
use of an existing resource. This is not an argument about whether
Auckland needs a second airport. A second airport already exists.
It is about making the most efficient use of an available resource
and finding the most appropriate mechanism to transfer this
infrastructure and land from military to civilian uses.
A second commercial airport for the Auckland region is in accord
with the Crown’s program to address regional infrastructure generally,
specifically on measures which reduce congestion on the roads,
but more generally on strengthening the tourism and transport
infrastructure of New Zealand with greater public control to ensure
their continuity of service.
b) Seeking to Leverage the Region’s Natural Advantages
What Waitakere City is actively seeking to generate at Whenuapai
is not just a viable commercial airport but a development which18
7 Strategic Fit
a) Consistency with Local and Central Government Policies selective intensification. The strategy also highlights the importance
The NZDF consutlation document notes that the decision to be made of partnerships between central and local government in ensuring
by the Government must be consistent with relevant government the success of the strategy. The Regional Growth Strategy is a non-
policies. Waitakere City as the Territorial Local Authority involved statutory document but has been reflected in the Auckland Regional
must further ensure that any proposal fits in with its objectives and Policy Statement and it is clear that central government seeks to
those agreed by the Auckland Regional Council. strengthen rather than weaken this planning.
b) Government Initiatives for Auckland d) Regional Growth Strategy Implications for Whenuapai
The Government announced on 19 December 2003 major funding The strategy has significant implications for the future use of the
initiatives and changes to governance structures to address Auckland’s Whenuapai Airport in terms of:
transport crisis. Transport issues in the regional have been identified Residential development
as a major impediment to sustainable economic development.
Employment
The Government’s “Beehive” official web site contains a fact sheet
on “Auckland Transport and Governance and Regulatory Issues”
Infrastructure
which states: The overall ability to manage the effects on the environment
“The Government will engage expeditiously with the ARC to discuss of urban development.
a change to the Auckland Regional Policy Statement to reflect key To promote the containment of urban activities, residential develop-
parts of the Auckland Regional Growth Strategy and the Auckland ment is being focused around selected centres and transport hubs.
Regional Land Transport Strategy in order to give clearer guidance This process is occurring quickly in the North-West, as well as other
about transport priorities and integration with land use policies, and parts of the Auckland Region. A significant amount of this intensive
greater certainty in the consideration of resource consents for key development is occurring on brownfields land (old industrial areas).
Auckland transport projects” Mixed use, intensive development on such brownfields land makes
The Auckland Regional Growth Strategy proposes strengthening sense where such development is located close to transport routes,
of the regional urban form. Central government is recognising that but a consequence of the policy is that some industry is now
continual urban expansion places unsustainable demands on the looking for peripheral sites.
Auckland Transport Network, and that there is a strong linkage Other trends are also pushing some industry to the edges of
between land use and travel demand patterns. the metropolitan area. An important trend is businesses seeking
Two of the options put forward in the NZDF consultation document; accessible sites on the motorway network, away from the
Public Work/Urban Development and Industrial/Commercial uses, congested inner isthmus.
are contrary to the regional growth strategy and would encourage For Waitakere City these trends are recognised in its planning for
urban sprawl. The Airport option supports the Government’s the Northern Growth Corridor (the area extending from Massey in
initiatives by changing travel demand patterns: the west to the Upper Waitemata Harbour to the east). A significant
As an airport it provides an alternative destination to Mangere and proportion of the land Northern Growth Corridor is identified for
therefore spreads demand across the network more efficiently. business activities, partly to off-set the conversion of business
land to residential activities around Henderson and New Lynn.
As an economic growth engine it stimulates economic The planning for the area also recognises the importance of State
development in an area where the majority of the workforce Highway 18 and the “ring road” role of this piece of infrastructure.
leave the city to travel to work each day.
It is Waitakere City’s policy that priority will be given to the release
c) Auckland Regional Growth Strategy of new urban land that contributes to the economic development
The Auckland Regional Growth Strategy: 2050 is a response to of the City. Land for residential activities in the Northern Growth
the rapid and unrelenting population growth of Auckland, and the Corridor is unlikely to become available for at least 7 years, unless it
pressures this places on the infrastructure and natural resources occurs as part of a mixed use development that supports the City’s
of the region. “Urban Village” development philosophy. The City wants to ensure
The history of Auckland is one of rapid growth and change and that the social and economic infrastructure (and land to support
the Auckland Regional Growth Strategy seeks to set the direction this) is in place before allowing wider urbanisation to occur. This is
for the region’s future urban form. It was developed through the to ensure that the suburban sprawl that has characterised the City’s
1990s through a consensus building process with Auckland’s development in the past does not continue in its new urban areas,
local authorities and seeks to contain the outward spread of the and that local jobs are created to support its existing residential
metropolitan area so as to protect and enhance the values and population. This policy is entirely consistent with the Auckland
qualities that make the Auckland Region a successful living and Regional Growth Strategy and Auckland Regional Policy Statement
working environment. To achieve this, the strategy proposes and therefore supports the Crown’s initiatives to strengthen the
containing the growth of the urban area of the region and promoting Auckland Regional Policy Statement.You can also read
