15 Oct 2024

Minister argues against decision to let designation to extend Hamilton Airport runway lapse

6:38 am on 15 October 2024
Shane Jones

Photo: RNZ / Samuel Rillstone

The potential to connect Waikato to the world will be lost in 18 months if Hamilton Airport lets a designation to extend the runway lapse - a move the regional development minister has labelled "perilous".

At present the runway is 2200 metres long and designation, granted by the Crown in 2011, means it can be extended to 2900m to cater for wider aircraft which can undertake longer flights.

But in 2022 Waikato Regional Airport and its five shareholders, Hamilton, Waikato, Waipā, Matamata-Piako and Ōtorohanga councils, decided to let the 15-year designation lapse in 2026 because a business case showed it would cost $120 million to build the extension.

Shane Jones said there was a simple solution that would buy time without costing too much while at the same time keeping the designation.

"I'm surprised that there has not already been an option advanced to simply extend the designation, and park up debates about capital burden in relation to future enlargement to a point in the future."

The New Zealand First MP said it would be a missed opportunity to let the designation lapse because in his experience, "once it's gone, it's gone for good".

"All I'm saying is that if Waikato as the centre of the Golden Triangle wants to expand its importance over time for resilience, logistics and growth potential then it's a perilous route to take not to maintain the designation."

Jones said Waikato Regional Airport, which had sold off land surrounding the airport to commercial businesses, needed to decide whether property or aeronautical development was its priority.

"If you don't secure the options for future growth of such key infrastructure then obviously you're favouring another type of development in and around your airport, and once you lose the option of maintaining or growing it's strategic resilience role then other parts of the economies or other areas will replace you."

Hamilton City Councillor and former airline owner Ewan Wilson said he was concerned the asset would lose value once the designation lapsed.

He said it was "typical, small-minded New Zealand thinking" to take a short-term approach to infrastructure and he accused the Waikato Regional Airport and its shareholding councils of being

commercially naive.

"Why on earth would you surrender (the designation). I know the clock is ticking and they've got up until 2026 but it doesn't mean you have to complete (an extension) by then, you just have to start it."

Wilson, who chairs the council's economic development committee, said Auckland Airport was currently a single point of failure should anything happen to it and Hamilton should be expanded to build resilience.

He was worried future industrial, commercial and retail developments planned for north west of the runway would close the door on any possible runway expansion and said priority must be given to sustain the airport as an aeronautical facility.

But Hamilton mayor Paula Southgate, whose council has the largest shareholding of 50 percent, said any future property development would not preclude a runway expansion.

"As long as you haven't developed in a way that you can't then extend the runway in a future time, you can apply for a designation again."

Southgate said the business case to extend the runway showed it was not cost-effective but she and the other stakeholders had asked Waikato Regional Airport to remain open to future opportunity.

She said suggestions of a Singaporean interest had not materialised and noted the airport could already accommodate some international flights including from as far as 10 hours away in South East Asia, although Wilson pointed out those planes must have a narrow width.

Southgate said to spend the amount of money needed to extend the runway there would need to be a return.

"If we have a credible offer from an international airline from South East Asia or some distance that we could accommodate, then of course we could relook at the business case at that point in time and relook at the designation."

She said it was encouraging to hear the Minister had indicated his support and the possibility of some Government funding, and she would be talking to stakeholders this week to see what that could mean for the designation.