A war of words between Queenstown Lakes District Council chief executive Debra Lawson and former mayor Warren Cooper over the controversial airport shares sale continued yesterday.
Ms Lawson, in response to a letter Mr Cooper gave her on Monday questioning the process used to brief councillors on the $27.7 million deal, said the Queenstown Airport Corporation's constitution, which made the sale possible, had been approved by the council in October 1996 - when Mr Cooper was mayor.
Mr Cooper, in a letter copied to the Otago Daily Times, claimed councillors should not have made a decision on the sale at a workshop on July 7 and sought an assurance the procedures had been legal.
Failing that, he said, he could put the matter before "Central Government authorities".
In her reply yesterday, also copied to the ODT, Ms Lawson questioned Mr Cooper's "genuine interest" in her response, given it was copied to the media without first providing her with the opportunity to reply.
She also said the council might invite the Office of the Auditor-general to undertake a review of the process "so as to ensure surety".
Mr Cooper had "incorrectly described the nature of the transaction" between the QAC and the QLDC, she said, saying the QAC board issued the new shares as it was entitled to do under its constitution.
The QLDC shareholding had not changed - it held 12,046,880 shares before and after the deal was done.
Ms Lawson said no decisions were made at the workshop on July 7, attended by QLDC councillors, the sole purpose being to brief them on the announcement before the opening of the sharemarket the next day.
"There was no decision made by council. Council was not involved in any transaction.
"QAC, which is a council-controlled trading organisation ... issued shares as it is permitted to do under its constitution."
Ms Lawson said the QAC's statement of intent provided for the issuing of shares and that was also consistent with its constitution.
"The board are required to make sound commercial decisions about the company that meet the objectives of the company.
"I don't accept your comment that this transaction 'smacks of an exercise in stealth'. On the contrary . . . the transaction follows the procedures set out in the Local Government Act 2002 and the QAC constitution."
She said it was "worth noting" the QAC's constitution, which enabled the transaction, was adopted by resolution of the council on October 25, 1996.
"You were mayor of council at that time and were appointed proxy to attend the annual general meeting of the QAC at which the approved constitution was adopted," Ms Lawson said.
Mr Cooper is currently in Australia and could not be reached for comment.
Tourism Auckland yesterday backed Auckland International Airport Ltd's stake in Queenstown Airport.
In the statement posted online, chief executive Graeme Osborne said the acquisition of a 24.99% shareholding was "great news for Auckland".
"Tourism Auckland welcomes the prospect of a strategic alliance with Queenstown Airport as making perfect business sense given that the major visitor flow to Queenstown is through Auckland Airport."
Mr Osborne said it was an "exciting move" by New Zealand's largest airport company, which would have benefits for Auckland.
"It's very positive to see the airport company working with the South Island's key visitor destination for the mutual benefit of both our regions.
"This alliance will open up more opportunities for joint venture marketing with Queenstown to help drive visitors to enjoy the dual destinations."
