The Central App

High Court rules Wanaka Airport lease illegal

The Central App

Maddy Harker

21 April 2021, 5:30 AM

High Court rules Wanaka Airport lease illegalThe Wanaka Airport lease has been set aside and the airport remains in the ownership of QLDC.

The High Court has overturned the Wanaka Airport lease.


In a judgement released this afternoon (Wednesday April 21) the court said Queenstown Lakes District Council’s (QLDC) granting of Wanaka Airport lease to the Queenstown Airport Corporation (QAC) was unlawful and it will be set aside.



The judicial review was brought to the High Court by anti-jet lobby group Wanaka Stakeholders Group (WSG), who say they are “delighted” with the findings shared today, in which the court rejected four of the group’s claims but upheld two. 


The transfer of control of a strategic asset can only take place under the process prescribed in the Local Government Act 2002, and that process was not followed in the case of the Wanaka Airport, Justice Van Bohemen said. 


The consultation process carried out by QLDC before granting the lease also did not comply with the consultation requirements of the Act.


While Justice Van Bohemen acknowledged there would be disruption to Wanaka Airport tenants by setting the lease aside, by not doing so the public’s ability to have a say in the future uses of the airport over the next 100+ years would be limited.


As a result, the lease has been declared to be of no legal effect. 


“This judgement confirms what we and our nearly 3,500 members have said clearly and consistently from the outset: the community was not consulted properly and QLDC has not been transparent about such possible plans,” WSG chair Michael Ross said.


However, the High Court rejected WSG’s argument that QLDC misled the public about its intentions for the airport.


“The court considered that the expectation of introducing jet services to Wanaka Airport arose in the course of negotiations over the lease after the consultation process had concluded,” a statement from the High Court said.


But it did find that the proposal on which QLDC carried out its consultation process did not fairly represent the nature of the decision taken by the council when it granted the lease, and Justice Van Bohemen said the lease “went considerably beyond the scope of the statement of proposal”.


A bid by WSG to create an order restraining QLDC and QAC from taking any steps to develop and operate Wanaka Airport as a dual capable airport with Queenstown Airport was also rejected by Justice Van Bohemen.


Wanaka Stakeholders Group chair Michael Ross


“If there continues to be a case for meeting that demand by the development of Wanaka Airport, it is open to QLDC and QAC to pursue that option, provided they do so in accordance with the requirements of the LGA,” he said. 


Both QAC and QLDC provided brief statements acknowledging the court’s decision.


“We acknowledge that the court has found that the council did not follow the correct statutory processes to lease the airport to Queenstown Airport Corporation, but welcome its rejection of WSG’s position that QLDC had deliberately misled the community in doing so,” QLDC communications representative Jack Barlow said. 


QAC would work with QLDC on “next steps”, QAC chair Adrienne Young said.


Michael thanked the people who had spent “thousands of hours” working on the judicial review.


“The Upper Clutha community has been emphatic: we don’t want an additional jet airport developed near Wanaka, and we won’t stand by while our local council or airport company act against the will of the community,” he said.


Meanwhile, Jack Barlow said QLDC planned to reflect on the findings and work with councillors and QAC to agree on the next steps for Wanaka Airport.


“In the meantime the Wanaka Airport remains in the ownership of QLDC and we will look to QAC to continue to provide a managed service, and to ensure that there is minimal disruption to operators and tenants,” he said.

 

QLDC councillors approved the 100-year lease of the Wanaka Airport to the QAC in 2017, following consultation during 2016/2017. When it was signed a year later QAC paid QLDC $14.5 million for the ground lease and related assets.


PHOTOS: Supplied