Wellington city council has voted to explore selling its 34% stake in Wellington International Airport, subject to public consultation.
The council will also look to sell a number of ground leases in the centre city. The assets will be converted into a green investment fund, focused on more diversified investments outside the city.
Mayor Tory Whanau insisted the sale was not intended to pay down debt to fund other spending.
“Let me be clear – I will never lead a city that sells airport shares to pay down debt. I have never supported selling the silverware to pay the mortgage.”
“Wellington city council must reshape its investment so it’s more resilient and diversified.”
Councillor Tony Randle said he was concerned about earthquake risk. “For me, it’s not about getting the best rate of return or the most strategic assets, it’s about making sure this council can react when the big one hits. If we get a magnitude 7 or 8 earthquake, I’m not sure Wellington airport shares will have much value.”
Councillor Tim Brown, the former chair of the airport, was one of the more aggressive supporters of the sale. “Anybody is opposed to this is effectively willing to be utterly irresponsible with the assets of this city,” he said.
The vote for the airport sale was a strong majority, with only four Labour councillors opposed: Teri O’Neil, Ben McNulty, Rebecca Matthews, and Nureddin Abdurahman.