QLDC - Media Updates
COUNCIL UNDERTAKINGS REGARDING LEGAL PROCEEDINGS - 1 September
The Queenstown Lakes District Council has lodged an undertaking in the High Court regarding legal action in connection with issuing shares in Queenstown Airport.
Two weeks ago legal proceedings were issued against the Council, the Queenstown Airport Corporation and Auckland International Airport by Air New Zealand and the Queenstown Community Strategic Asset Group Trustee Limited. The Council is defending the proceedings.
“At Monday’s meeting of Council, which was held to specifically discuss the legal action brought against the community by these two parties, the Council approved an undertaking,” QLDC chief executive Debra Lawson said.
The legal undertaking was lodged with the High Court yesterday (Tuesday).
“What it means is that the Council accepts that there will be no final decisions taken in relation to the second tranche (issuing of up to 10% further shares in Queenstown Airport) or to enter into a binding shareholders agreement with Auckland Airport, while these proceedings are before the Court,” she said.
The Council was also signalling its intention to consult with the community on any proposal to proceed with the second tranche.
The formal undertaking lodged with the Court was as follows:
1. That the Queenstown Lakes District Council undertakes that it will refrain from:
(i) Making any decision that it will approve Queenstown Airport Corporation Limited (QAC) exercising any option to require Auckland International Airport Limited (AIAL) to increase its shareholding in QAC, or from making any decision that it will approve any other arrangement whereby QAC takes any step which has the effect of increasing AIAL’s shareholding in QAC; and
(ii) Making any decision to enter into a binding shareholders’ agreement with AIAL in relation to QAC.
(The “Decisions”)
For the avoidance of doubt QLDC shall not be restrained from:
(a) Commencing and undertaking any process under the Local Government Act 2002 for the purpose of making any such Decisions but excluding the final Decisions; or
(b) Entering into discussions with AIAL or QAC in respect of the issue of shares or the conduct of this litigation; or
(c) Making any decision as to the process or processes to be followed under the Local Government Act 2002.
Ms Lawson said it continued to be a disappointment to the Council that legal proceedings - with the associated cost to the community - had been brought at all.
“We had entered into an agreement with the Office of the Auditor General (OAG) which had committed to undertake an in-depth, independent investigation of these matters, an investigation that would have carried minimal cost to ratepayers,” she said.
Within hours of confirmation by the OAG to all parties that it would undertake an investigation, Council was given notice of legal proceedings.
“The OAG had no choice but to put its investigation on hold and the Council must now defend these matters in Court,” Ms Lawson said.
Meanwhile accusations that the Council was gagging its elected members or that the community was prevented from having a say, made at Monday’s Council meeting, were unfortunate.
“There are two parties that are bringing proceedings against this community, anyone critical of Council regarding its response to legal matters, which are clearly outside its control, has misdirected that criticism,” she said.
The matter was now subject to Court proceedings which meant that the Council was constrained in what further comments it could make.
IMPROVEMENTS FOR Q’TOWN ROADS UNDERWAY IN SEPTEMBER - 31 August
The scheduled major ‘street-scape’ upgrade of Lake Esplanade will be timed with final infrastructure and lighting improvements, Queenstown Lakes District Council project manager Steve Hewland said.
“This is a significant upgrade and improvement to the street in terms of safety and amenity from Steamer Wharf to the Fernhill roundabout. A big part of our infrastructure upgrade was completed last year (sewer main upgrade) and now we have planned to complete all remaining upgrades in one hit,” Mr Hewland said.
That meant replacing sections of the water main, valves, laterals, flow metres and new street lights. The total cost of the project was $1.55 million.
“We have taken a really forward looking approach. In other words we want to minimise the disruption by ensuring that all work that needs to happen on that stretch of road is packaged into this one final project,” he said.
The roading project included a new road surface, new kerb and channel, stormwater drainage, improved safety for cyclists, improvements to the pedestrian crossing and improved pedestrian access to St Omer reserve.
Although the programme was scheduled to run from September 2010 through to March 2011, all work would stop during the busy Christmas period (December 17- Waitangi Day).
“It’s also really important with so many accommodation providers in the precinct that we introduce an alternative, temporary water main while the upgrade is occurring,” Mr Hewland said.
This would prevent anything more than minor water shut downs.
“We will be working closely with affected businesses to minimise disruption,” he said.
The project would be staged and, at minimum, one-lane-traffic would be maintained.
Meanwhile two major utilities and roading projects on Gorge Road ($1.6 million) would also get underway in the spring with work taking place from Shotover Street to Industrial Place.
“Again this is an upgrade of street lighting, water and sewer upgrades and some significant improvements to road user safety,” Mr Hewland said.
The work included:
• A new pedestrian refuge at the Robins Road intersection.
• New bus stop opposite the High School.
• New lane markings.
• New intersection controls for Hylton Place and Hallenstein Street.
• Landscaping.
Work on Gorge Road would also stop over the busy Christmas period. The utilities project would be completed before Christmas and the roading project after Waitangi weekend.
A three month upgrade of Perkins Road ($500,000), improving stormwater drainage, widening the carriageway and installing new parking bays was also scheduled to commence in September.
NATURE TAKES ROAD TOLL – BOTTOM-LINE UNDER BUDGET - 26 August
An overall under-spend on roads in the Queenstown Lakes District for the 2009/10 year has helped offset unbudgeted expenditure, due in the main to weather events, Queenstown Lakes District Council transport manager Denis Mander said.
“Unexpected maintenance like the need to remove high risk trees on Lower Shotover Road ($143,637), repairs to the ‘underside’ of the Edith Cavell Bridge ($59,558) and emergency work due to slips ($394,719) is unavoidable and comes with a price tag,” Mr Mander said.
Slips, dangerous trees, safety signage, flooding, ice and snow control had collectively delivered a cost of maintenance $1.1 million over budget.
“These are all circumstances that are beyond our control and it seems 2009/2010 had its fair share of events. The mitigating factor here is that the roading budget for the same period was well under budget,” Mr Mander said.
The roading budget had been heavily downgraded due to the reduction in New Zealand Transport Agency funding released in the national programme for 2009-12.
“The other really important factor has been that we have seen an improvement in the construction market. The result has been that projects have been achieved at lower than expected costs,” Mr Mander said.
‘In other words the contract allows the council to benefit from an improved market,’ Mr Mander said.
The overall budget bottom line which factored in both maintenance and road renewals was positive.
“Overall we have incurred significantly less cost than budgeted,” Mr Mander said.
The end of year report for the transport activity would be received by the QLDC utilities committee at its meeting on Tuesday (31 August).
