Infratil owns the remaining 66 per cent of Wellington International Airport. It acquired its share in 1998 from the then government.
That sale led to then prime minister Jenny Shipley dismissing Winston Peters as deputy prime minister and treasurer after he publicly criticised the decision.
At the meeting today Condie noted the city council doesn't have as much influence as people think over the asset because it is the minority shareholder.
The airport paid no dividend in 2021 and has confirmed no dividend will be paid in 2022. Photo / Mark Mitchell
She said the council was not a good shareholder anyway because it has so many financial pressures.
"We just don't have a lot of capital available to invest."
Green councillor Iona Pannett described the airport as a "dirty asset" in terms of climate change, but on the other hand she was also a strong opponent of asset sales.
"I also don't want to deprive young people of the ability to travel one day when it's more environmentally sustainable or at least to travel infrequently. Being able to travel is one of the world's greatest privileges."
Labour councillor Fleur Fitzsimons said privatisation of the airport would be a backwards step.
"Asset sales have a terrible history in New Zealand. I think this would be a disastorous decision for Wellington, it is a strategic asset for our whole region."
The council has undertaken a balance sheet review, looking at its airport shareholding and a portfolio of ground leases dating back to the 19th century.
Council officials consider these assets are susceptible to climate change, natural hazard risk, and potentially the longer lasting implications of Covid-19.
"Council's investment holdings are sizable but lack diversification and are relatively illiquid. In the event of a major disruption Council would be unable to release equity from these investments quickly, and the value of the assets could be significantly impaired."
Officials said it was prudent to explore changes to manage this financial exposure and ensure the portfolio better supported the council to deliver on its strategic priorities and manage risks.
Airport returns have been relatively volatile in recent years and there are risks to shareholding value, officials said.
The airport paid no dividend in 2021 and has confirmed no dividend will be paid in 2022.
At the beginning of the meeting councillor Nicola Young asked whether Foster had a conflict of interest since he was both a director of the airport and the mayor. She was advised that he didn't in this instance.
But Young said she didn't think it was right that Foster was allowed to be involved in the committee discussion and voting considering his director role.
She also wanted to know how many airport board meetings Foster had been to recently, but that question was ruled out of scope.
Earlier this year the Herald revealed Foster had missed almost half of the airport's board meetings.
