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The battle for a stake in Auckland Airport has taken yet another
twist with the airport company now seeking clarification from the
government after its dramatic law change.
Finance Minister Michael Cullen rushed through a legislative
amendment on Monday night aimed at protecting New Zealand's
strategic assets in a move that has caused some upset.
Under the change, ministers will be able to block the sale of
assets to a foreign company if it runs counter to the need to
maintain New Zealand control of what it calls "strategically
important infrastructure on sensitive land."
It means the bid by the Canadian Pension Plan for a 40% stake in
New Zealand's biggest airport is now looking increasingly
unlikely.
The government says the move was made to provide certainty to financial markets regarding its intentions.
But one analyst say it's likely to have the opposite effect. Business commentator Brian Gaynor says changing the rules midway through negotiations for Auckland Airport will create uncertainty in New Zealand's financial market.
