A councillor has accused City of Newcastle of "greenwashing" by earning revenue from weapons manufacturers at Williamtown.
Greens councillor Charlotte McCabe says the council's half-ownership in Newcastle Airport's Astra Aerolab defence and aerospace precinct is at odds with its socially responsible investment policy.
The airport, which is owned jointly by Newcastle and Port Stephens councils, has secured lease contracts with defence companies Daronmont Technologies and Plexsys at the 124-hectare estate and is receiving an option fee from BAE Systems Australia.
The council's investment and borrowing policy says City of Newcastle's "preference" is to avoid investing in socially or environmentally harmful activities, including "production or supply of armaments".
Cr McCabe moved at last month's council meeting that City of Newcastle advise the airport board that it did not support leasing to defence companies such as BAE, Lockheed Martin, Electro Optic Systems, Raytheon, Daronmont Technologies and Plexsys at Astra Aerolab.
"The strategic direction chosen by the board of the Newcastle Airport to purchase land adjacent to that airport and establish it as a precinct for the defence industry does not align with our own investment and borrowing policy, or with our commitments to the sustainable development goals," she told the meeting.
Cr McCabe said Newcastle residents had not had a chance to comment on the strategic directions of the airport board, which includes lord mayor Nuatali Nelmes and council chief executive Jeremy Bath.
"I'm concerned that the third major DA for Astra Aerolab, which apparently is a workshop, has included in its application a plan for industrial processes, production, welding and assembly of equipment for defence activities," she said.
She said she was "really concerned" that Lockheed Martin, one of the world's largest weapons manufacturers, was "continually mentioned as a potential future tenant for Astra Aerolab".
The Newcastle Herald reported in February that the airport had lodged a development application for a $32 million workshop at Astra Aerolab for a "high-technology" aerospace contractor with almost 200 employees.
The airport won planning approval in August for two multi-tenanted buildings designed for small to medium enterprises, start-ups and education and training facilities.
A City of Newcastle chief executive report presented to councillors with Cr McCabe's motion said the council's investment policy did not apply to the airport, which was a separate entity controlled by a "majority independent" board.
The report said the airport did not have direct or indirect investments in defence companies.
"There is no explosive ordnance manufacture/assembly on land owned by Newcastle Airport," the report said.
"Furthermore, there is no intention by the airport to seek this type of tenant."
The report emphasised the airport was "in the process of converting to a sustainability-based loan" and in May 2023 received "Level 4 Airport Carbon Accreditation".
Cr McCabe told the Herald that "justifying Astra Aerolab's business model through pointing out the airport's green energy consumption and green loan is tantamount to greenwashing".
She and fellow Greens representative John Mackenzie were the only councillors to vote in favour of the motion.
Labor councillor Deahnna Richardson spoke against the motion, saying it was "quite clear" from the chief executive report that the airport was run by a separate company with an independent board.
"I would be really hesitant to to support any motion which would try to exert a particular decision on a director because that director, under the under the Corporations Act, has to act in the best interests of the company of the board that they sitting on," she said.
Deputy lord mayor Declan Clausen added that the absence of "explosive ordinance manufacturing" at Astra Aerolab meant it was not at odds with the council's investment policy.
"I do support RAAF base Williamtown, the work that it does to protect our nation," he said.
"I appreciate that it is a very large employer of Novocastrians.
"I think it is important that this council, through our partnership at the Newcastle Airport, can play a role in supporting those ancillary industries whilst noting that there isn't the manufacturing of explosive ordinances or assembly on land owned by the Newcastle Airport," he said.
The Liberals' Jenny Barrie also spoke against Cr McCabe's motion.
Cr McCabe said the "clear intention of an ethical investment policy" was to "restrict the support of and collecting profits from companies that are harmful in some way".
"And, for me, the strategic business decision for Astra Aerolab to engage with companies that ... manufacture weapons in other sites, in other parts of their company, if not directly on that site, means that the element of support and the element of collecting profits from those companies still exists," she told the meeting.
"I don't understand how we can have a policy on one hand that rules those companies out and a business on the other that directly attracts them."
