Wellington city councillors have voted to push pause on a sale of the council’s airport shares.<\/p>\n
As part of the city council’s long-term plan the council agreed to sell its 34 percent stake in the Wellington International Airport to establish a new perpetual investment fund.<\/p>\n
It would be designed to help the city’s recovery following a future natural disaster, address the council’s insurance risk and reduce reliance on future borrowing.<\/p>\n
But, in August the fund faced an uncertain future when a notice of motion was signed by nine councillors to shoot down the sale.<\/p>\n
A meeting was held on Thursday on that notice of motion but councillors have voted nine to seven to support it.<\/p>\n
Councillors did axe clause 3 of the notice of motion which would have stopped any delegations to contribute to the development of the council’s draft and final Long Term Plan.<\/p>\n
That was due to councillors believing that this clause was not inclusive of mana whenua and their T\u0101kai Here partnership.<\/p>\n
The T\u0101kai Here partnership was signed in 2022 to establish a shared commitment between council and mana whenua.<\/p>\n
Following the vote Wellington Mayor Tory Whanau told the councillors there would have to be cuts to the council’s capital programme.<\/p>\n
However, she respected the vote that she did not back.<\/p>\n
“Democracy has spoken.”<\/p>\n
Council officers now have to stop all work on the airport’s shares sale and staff have to develop a long-term plan amendment process, which they would provide advice on to council next month.<\/p>\n
By December, the council would need to develop options for consultation – which would include detail regarding capital programme changes.<\/p>\n
The options would have to include a full sale, partial sale, and no sale choices.<\/p>\n
A full programme of community consultation would be required, and the amended long-term plan would have to be audited prior to final adoption by June next year.<\/p>\n
Ahead of today’s meeting, officials warned if the shares were not sold the council might have to triple its debt ceiling or cut hundreds of millions of dollars of projects – including the cycleways programme, the Golden Mile upgrades and the Khandallah Pool strengthening.<\/p>\n
Officials recommended the council sell the shares to diversify its investment portfolio and deal with the city’s growing insurance gap.<\/p>\n
The council is underinsured by $2.6 billion in the event of a one-in-1000-year natural disaster.<\/p>\n
Officials recommended the money from the share sale should go into a perpetual investment fund as a form of self-insurance.<\/p>\n