Wellington regional council considers buying city's airport shares

Thursday, 20 June 2024

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Wellington’s regional council is exploring whether it should buy shares in the capital’s airport, about to be sold by the city’s council.

In a closed-door meeting, regional councillors agreed to look at options to “help out” the city council, after it voted to proceed with the controversial decision to sell its 34% stake. The minority holding is worth at least $278 million.

Officials have been tasked with preparing advice on options, a “desktop exercise”.

One councillor said they have been gagged from speaking about any proposed deal, citing commercial sensitivities.

But it is understood there is not an appetite among councillors to use ratepayers’ money to buy the shares.

The idea is also to be discussed at an upcoming regional mayors’ forum.

That follows a letter from Lower Hutt mayor Campbell Barry to regional council chair Daran Ponter on Thursday.

“While I understand the challenging financial position of Wellington City Council (like many councils across New Zealand) we would be remiss as a region not to fully explore the future of Wellington Airport as a strategic asset of regional significance and undertake an in-depth analysis of retaining public ownership.”

Campbell said a “more thorough process” could engage the wider region on options for retaining the shares in public ownership.

Barry said it “makes sense” for the regional council to take the lead.

Both Ponter and Barry are currently on an Infrastructure NZ visit to the UK and did not respond to calls.

One councillor told The Post they believed the idea was “cooked up” as a bid to soothe tensions on the left.

Mayor Tory Whanau has promised the proceeds would be channelled into an investment fund, which could generate up to $6.4 billion over 50 years, and help with repairs in the event of a major earthquake.

But selling the stake has split Whanau’s left-leaning voting bloc. Three city councillors – Ben McNulty, Nureddin Abdurahman, and Nīkau Wi Neera – broke ranks following the vote to say they have lost faith in the mayor.

It’s thrown into question the capital’s long-term plan, with seven councillors looking to vote against it on June 27, partly because of the the inclusion of the sale.

The National-led Government is watching progress on the long-term plan closely, and sources say ministers are likely to consider intervention if the budget doesn’t pass.

Regional councillor Thomas Nash, making a brief comment in a break from chairing a Transport Committee meeting, said the regional council purchasing the shares was unlikely.

Porirua mayor Anita Baker said the idea had been circulated to mayors this morning as an addition to the Mayoral Forum agenda in August. As chairperson she would add the item to the agenda for discussion, she said.

City councillor Diane Calvert said it would be easier for the city council not to sell the shares, rather than a complicated process of transferring ownership to another public body funded by the same ratepayers.

“If it’s seen to be such an important public asset, why are we selling?

“The only ones who will make money from selling to the regional council are banks and lawyers.”

– Additional reporting Erin Gourley