Photo: AFP
Wellington city councillors have voted to push pause on a sale of the council's airport shares.
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.
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.
But, in August the fund faced an uncertain future when a notice of motion was signed by nine councillors to shoot down the sale.
A meeting was held on Thursday on that notice of motion and councillors have voted nine to seven to support it.
Councillors did axe clause 3 of the notice of motion which would have excluded mana whenua from the amendment process.
They believed it did not honour their Tākai Here partnership which was signed in 2022 to establish a shared commitment between council and mana whenua.
Following the vote Wellington Mayor Tory Whanau told the councillors there would have to be cuts to the council's capital programme.
However, she respected the vote that she did not back.
"Democracy has spoken."
The council's public gallery was packed as members of Unions Wellington held up placards to encourage councillors to stop the sale of the airport shares.
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.
By December, the council would need to develop options for consultation - which would include detail regarding capital programme changes.
The options would have to include a full sale, partial sale, and no sale choices.
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.
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.
Officials recommended the council sell the shares to diversify its investment portfolio and deal with the city's growing insurance gap.
The council is underinsured by $2.6 billion in the event of a one-in-1000-year natural disaster.
Officials recommended the money from the share sale should go into a perpetual investment fund as a form of self-insurance.
RNZ reported earlier on Thursday that behind-the-scenes political manoeuvring to stop the vote was continuing up to the last minute.
RNZ understands a group of left-bloc councillors had tried to stop or re-schedule the vote in a way that could include the mana whenua vote. But council rules dictate that only the person who filed of the Notice of Motion can withdraw it, and under the Local Government Act asset sales can be sold only through decisions of the full council.
