On The Tiles - Local Edition: Wellington City Council considers selling airport shares

Wellington City Council has a 34 per cent share in the airport, worth $278 million. Photo / Mark Mitchell

Wellington City councillors will vote today on whether to consult with the public on selling its 34 per cent share in the airport.

It comes as the council is proposing widespread cuts to keep annual rates increases at 5-8 per cent over the next decade while still investing in the city.

Proposals include pulling the plug on the rebuild of the Khandallah pool, ditching skatepark refurbishments, and deferring road resurfacing.

Even the council’s controversial but award-winning city-wide cycleway network rollout has not gone unscathed. The council is considering shaving $81 million off the total cost of the project.

The Long-term Plan, Finance, and Performance Committee is meeting today on the cuts and proposals to sell the council’s airport shares and ground leases.

Talking to Georgina Campbell on On the Tiles - Local Edition, the Herald’s politics podcast, NZME’s Wellington head of news Katrina Bennett said now was not the time to sell the shares, worth $278 million.

“It’s [the airport] an incredibly important lucrative asset and I think the council should remain with it because, during the good times, it’s very valuable.

“But I also think that it gives the council a say over what happens to a crucial piece of infrastructure for Wellington and I would be more comfortable with the council having a say and a seat at the table around that.”

Newstalk ZB Wellington news director and news reader Max Towle pointed out Mayor Tory Whanau has said she is open to selling the shares as long as the money is used to reinvest in good projects and not just to pay down debt.

“I think she’s pretty spot on there. Let’s make sure this isn’t just a short-term bandage that’s probably going to cost us in the long term.”

Before Covid-19 hit, total dividends from the airport paid to the council amounted to $120 million over 10 years.

However, airport returns have been relatively volatile in recent years with the council not receiving dividends for a period after Covid-19 and it agreed to underwrite the company to the tune of $25m.

Listen to the full podcast of On the Tiles - Local Edition to hear more about whether Wellington City Council is really facing a financial crisis, what cuts are being proposed, and whether Mayor Tory Whanau has had a successful first year in the job.

• On the Tiles is available on iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.