New tax regulations could encourage Auckland Council to sell the Ports of Auckland’s operating company.
Land transfers from council subsidiaries like Panuku which currently owns some the port land, to the council itself could be heavily taxed as part of new tax regulations, set to come in on July 1, Stuff reports.
“Moving in this direction would make it significantly easier for any future council to sell the port operating company,” Peter Winder from consultants McGredy Winder says.
“The tax issue is only relevant if you want to do something else in the future, and there’s only two grounds – one is to put pressure on the port company to use its land holding more effectively and the other is if you were going to sell the port company.”
It’s estimated Ports of Auckland (POAL) is worth about $500 million if separated from its waterfront land.
Back in 2017, Auckland mayor Phil Goff and the port’s management discussed its future, but released little information about what was said.
“I’ve made no decisions about the port’s long term future as yet, but intend to make progress on this matter over the course of this term,” Goff said at the time
The port acknowledged different options regarding its future were talked about.
“We also discussed work that was started under the previous council to evaluate the potential to split the port land from the operating company. This is the first time these matters have been discussed with the current mayor.”
Transferring the land back to Auckland Council would need agreement from the ports board and council’s development company Panuku, which owned land on the western waterfront and marinas valued at $740 million.
POAL’s future also rests with the Government’s Upper North Island Port Future Study to some extent.
