A group of Queenstown businessmen has been ordered to pay a total of $95,000 as security for court costs as it seeks to overturn the sale of Queenstown Airport shares to Auckland International Airport.
After a hearing before Justice John Fogarty in the High Court at Wellington on March 17, and a decision delivered on March 21, the Queenstown Community Strategic Asset Group has been required to meet security for costs of $50,000 in favour of the Queenstown Airport Corporation, and $45,000 for Auckland International Airport Ltd, if it is to proceed with its judicial review hearing, scheduled to take place in May.
Yesterday, group member John Martin, while "steadfastly refraining from commenting on any aspect relating to the courts", told the Otago Daily Times the group was "more than happy to meet security for costs". In October, the ODT reported that the Auckland and Queenstown airport companies were seeking a security of costs order against the group challenging the share sales deal, which was announced in July last year.
The group - whose members, in addition to Mr Martin, include Skyline Enterprises Ltd, Monaghan Holdings Ltd, Jacks Point Land Ltd and Hogans Gully Farming Ltd - opposed the application.
The airports claimed the Strategic Assets Group would be unable to pay costs if its High Court challenge was unsuccessful.
Last week's decision stated half of the costs - a total of $47,500 - was to be paid "within five working days of this judgement", with the balance to be paid "one calendar month" after that date.
Auckland Airport understood the money was due to be paid to the High Court by today, while Frazer Barton, of Anderson Lloyd, Dunedin, acting for the group, said last night the first payment was due "in the next day or so".
"They [the Strategic Assets Group] obviously feel pretty strongly about the strength of their claim," Mr Barton said.
An Auckland International Airport spokesman said that, in the context of the litigation, "it's a very sensible decision".
