The Family Silver: The Sale of Wellington Airport (A)

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Case

Reference no. 2009-77.1

Subject category: Ethics and Social Responsibility

Authors: Rob Laking (Victoria University of Wellington); Janet Tyson (Australia and New Zealand School of Government (ANZSOG))

Published by: The Australia and New Zealand School of Government (ANZSOG)

Originally published in: 2009

Version: 13-03-2009

Length: 12 pages

Data source: Field research

Topics: Infrastructure; Transport and utilities; Local and regional government

Share a link: https://casecent.re/p/151172

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Abstract

At 3 pm on Thursday 30 July 1998, the Wellington City Council met in special session to consider the sale of its 34 percent shareholding in Wellington International Airport Ltd (WIAL), the company that owned and operated Wellington Airport. The New Zealand government held the other 66 percent of shares. Government's long-standing policy was to divest such assets; its coalition partner since 1996, New Zealand first, was challenging this policy. Wellington Mayor Mark Blumsky had assured the Government he had a majority of the Council in favour of the sale. After extensive consultation, most Councillors held firm positions for or against the sale. But two were undecided. This case has been prepared for class discussion on the interplay between politics and rationality in public decision-making.