What does the lack of consultation with an Airport Lookout Building have in common with how Taranaki's Water supply could be managed ? And why should you be concerned ?

Late in February there were a lot of very surprised people in New Plymouth when the NPDC proudly reported the Airport Company (PRIP) had built a Lookout Building.

People were very surprised because they had no idea NPDC was spending money on this Lookout and, also surprised because a Lookout over the sea isn’t really what people would call core business for the Airport.

We’re writing this story for a few reasons:

• The Airport Company is a form of a Council Controlled Organisation (CCO). CCO’s have different rules than the NPDC about information and input for the Community. We’ll explain how the ownership works.
• The 3 Mayors of Taranaki are currently discussing a new Council Controlled Organisation for the structure of a new “Water Done Well” Company. We will explain why we don’t like that idea. (There are other options which we’ll discuss in another story).
• We’ll explain with the Airport Company being a form of CCO it is much easier for you NOT to know what they are doing as a business, and how you have no say in business operations, or how profits are spent.
• We’ve also got the much asked for cost to build the Lookout.

The Ownership of the Airport Company.

The Airport Company is a form of a Council Controlled Organsiation (CCO). This company included Trading in their set up so it is known as a CCTO.

“In July 2017 the Council (NPDC) established Papa Rererangi i Puketapu Ltd (PRIP) as a Council Controlled Trading Organisation (CCTO) to manage the full operations of New Plymouth Airport. The Council retains ownership of the Airport Company, holds the Aerodrome Operator Certificate and is the sole Shareholder.”

When the story of the Lookout broke the NPDC implied in their responses they weren’t involved with this decision as the Airport Company had built the structure. As the sole shareholder for the CCTO it would be very hard to believe the NPDC had no idea this was being built.

As a form of CCO, even though the NPDC is the sole shareholder, they don’t have to ask the community if we agree with future plans in a submission type process. The people of New Plymouth don’t get to have input in how the business will operate, or what debt they may take on, or how profits are used.

With NPDC being the sole shareholder, should the business not make a profit and additional funds or debt be required to keep it afloat, the people who underwrite the cost of this is of course the New Plymouth Ratepayers and Renters. BUT, we have no say in operations.

The CCO (CCTO) must provide a Statement of Intent document though - so Ratepayers and Renters can see what they plan to do. Of the tens of thousands of Ratepayers and Renters in New Plymouth only a handful would know anything about needing to check the yearly Statement of Intent for this CCTO.

When the CCTO was set up there wasn’t a lot of education about a Statement of Intent being required with legislation. The Statement of Intent is to be produced yearly, in advance of the operating financial year. This is so the community is aware of what the CCTO proposes to do for the next year.  (Not that we have any actual say in that).

The following are snippets from the PRIP Statement of Intent in 2022:

“PRIP’s primary goal is to operate the Airport on a sustainable commercial basis, to optimise the use of its assets and generate a reasonable return on investment to ensure the ongoing safe and successful operation of the Airport.”

• Their purpose seems to be as an Airport.

“Projects of any value will require management to consult with the Board if there is a material impact on Iwi or Hapū or the project is contentious or could attract wide public interest.”

• So the Board should have made the NPDC 100% Shareholder very aware they were building a Lookout, because it would have “wide public interest”.

“In conjunction with New Plymouth Partners, PRIP will also allocate an annual sum for community sponsorship.”

• Wonder which organisations the Airport Company is sponsoring ? Does your community organisation know sponsorship is available ?

“The operational performance of PRIP will be judged against the following measures:

8.1 Operational performance

• Maintain the Airport facilities to avoid any disruption of scheduled commercial flights other than for weather or airline related problems.

• Meet all the operating, maintenance, capital expenditure and interest costs.

• Recovery of the aeronautical portion of Airport operational costs through landing charges.

• Manage New Plymouth Airport in full compliance with the approved operating procedures

of the Civil Aviation Authority Rule Part 139”

• No mention of building walkways and non airport buildings in here.

“It is intended that provisions will be made for PRIP to pay a dividend to the Council based on surplus funds once revenue received from Airport operations has met operational requirements and serviced and repaid borrowings.”

• Hard to pay a dividend that the Ratepayers could make use of if money is being spent on Walkways and Lookout buildings and not paying off debt.

Statement of Expectations 2022

5. “No Surprises” Policy: It is expected that you will maintain a “no surprises” policy

and inform council officers well in advance of any material or significant events,

transactions or other issues that would be considered contentious or attract wide

public interest.”

• The Lookout was one heck of a surprise for pretty much everyone in New Plymouth except a select few.

“6. Sensitive Expenditure: While noting that CCOs operate in a different market than

the Council, they need to be cognizant of the fact that they are operating in a

public environment and should be aware of the Council’s sensitive expenditure

policy.”

• Wonder what the “sensitive expenditure policy has in it ? Does “sensitive expenditure” mean expenditure the Ratepayers and Renters might be sensitive about spending so best not to tell them ?

We see on the NPDC website – the page with the Council Controlled Organisations – that there are NO Statement of Intents (SOI’s) past 2022 for the Airport Company. There is no statement of intent for 2023,2024 or 2025 on this NPDC website page. So if you as a ratepayer wanted to know about CCO’s you’d most likely go to that section on their website.

This information was moved in 2023 – but there is no mention on the NPDC website CCO page where to find this information now.

Turns out this has moved to the New Plymouth Airport Website from 2023 and is under a heading buried under their “Corporate” tab. So even if you knew you were looking for an SOI – like we did – they are not easy to find from the NPDC website.

We did an LGOIMA to find information and this showed in 2025 there is budget for a walkway – no mention of a Lookout though.

Where is the transparency with the NPDC ?

Why did they move information about their Airport Company off their website from 2023 and make no mention on their website where it had moved to ? Why was it a secret that the Airport Company – full owned by the NPDC - was building a Lookout building at the Airport ?

And why did the NPDC try to suggest it was an Airport Company decision when they hold 100% shareholding in the company ?

Why we don’t like a Council Controlled Organisation (CCO) for Water.

• The Airport Company is an example of a form of CCO.
• Look at the massive surprise the people of New Plymouth got when the Airport Lookout hit the media. The community mostly had absolutely no idea this was coming.
• Even apart from the fact NPDC moved SOI’s off their CCO website page after 2022 – so SOI’s were hard to find - there was only vague mention of expenditure on a walkway in the 2024 to 2027 SOI – and we the Ratepayers and Renters of New Plymouth had absolutely ZERO say in whether we wanted that money to be spent – even if we had known about it.

We want the Ratepayers of Taranaki to have a say in how a water company is structured and managed and there are options for that – which we will tell you about soon.

But for now – we are saying – when you have a chance to submit on Water Done Well in a few months:

Taranaki - Say NO to a Water CCO !

Pass that on – not just to the people of New Plymouth – but to family and friends in Stratford and South Taranaki too. The 3 Mayors of these regions are talking about putting together a joint CCO for water infrastructure for all of Taranaki.

It is important to know what is planned for the management of our water – so the whole of Taranaki doesn’t end up with NO SAY like the New Plymouth Airport Company.

So the cost to build the Lookout – AND the costs to come – but on what ?

Back in February the New Plymouth Community wanted to know what did it cost to build the Lookout that most of us didn’t know about.

That total was: $481,375.47

Another $420K is available in the 2026 Financial year – there is no detail of what that will be spent on.

Zero transparency !

Non-current borrowings for the Airport are $33.8M, the Airport cost $648k more to operate in 2024 than forecasted, YET $481k was used to build a lookout and another $400k+ is still to be spent.

We have attached the Capital Expenditure budgets which show the mention of the 2025 and 2026 walkway expenditure. (Pictures to the right)

• We leave it up to you – but we suggest -

• Taranaki - Say NO to a Water CCO !