Queenstown Lakes District Council (QLDC) has budgeted to repay $14.1M to Queenstown Airport Corporation (QAC) following the overturning of the Wanaka Airport lease.

The High Court ruled in April that the QLDC’s granting of the Wanaka Airport lease to the QAC was unlawful and would be set aside, because the consultation process carried out by the council before granting the lease did not comply with the consultation requirements of the Local Government Act 2002.

The council said this week its draft 2021-2031 Ten Year Plan includes a revision of budgets in relation to Wanaka Airport.

The draft LTP states that provision has been made to repay QAC for $3.2M of fixed assets and $10.9M of pre-paid lease in the 2021/22 year.

QLDC media and channels advisor Jack Barlow told the Wanaka App the fixed assets include buildings, plant and equipment, roads and runways.

QLDC finance, legal and regulatory general manager Stewart Burns said the payments are a contributing factor to the proposed average rates increase of 5.45 per cent this financial year (from July 1 2021 - June 30 2022) - up from the average 4.56 per cent increase originally signalled in the draft plan.

“As a result of the Judicial Review decision, QLDC has revised its budgets in relation to Wanaka Airport. All direct revenue and expenses related to Wanaka Airport are now included in the Ten Year Plan as opposed to within the QAC budgets,” Stewart said.

As the QAC no longer holds the lease for Wanaka Airport, QAC holds an interim Management Service Agreement to provide for scheduled domestic air services, and both commercial and private general aviation operations. 

The draft LTP will be considered by elected members next Wednesday (June 30).i

PHOTO: Supplied