Wellington City Council told to drastically cut capital spending amid ‘financial crisis’

A Wellington City councillor has sought legal advice to reveal the council needs to cut capital expenditure by “tens of millions of dollars if not hundreds of millions of dollars” in the coming years.

Cr Diane Calvert made the comments today during a public debate on the council’s Zero Waste Programme.

Calvert said councillors do not know “the specifics” but received a behind-closed-doors briefing yesterday on the state of the council’s finances.

“We are facing significant challenges coming up and we are going to have to make significant decisions.”

The beleaguered Let’s Get Wellington Moving transport plan, Te Ngākau Civic Square, upgrades to social housing, rising insurance costs and earthquake risks are all putting pressure on the council’s finances, Calvert said.

Wellington City councillor Diane Calvert is warning of significant spending cuts. Photo / Mark Mitchell

Discussions yesterday on how the council might move forward included focusing on finishing projects that have already been started, meeting legal obligations and addressing underperforming infrastructure, she said.

“This is a financial crisis for us.”

Cr Nīkau Wi Neera asked if it was appropriate for the financial details in Calvert’s speech to be revealed in public.

Environment and Infrastructure Committee chairwoman Tamatha Paul said she understood Calvert had sought legal advice from general counsel about what she could and couldn’t disclose.

“So, I was listening carefully to the way that she framed that and I don’t think she was specific in what she disclosed in her speech.”

The council confirmed a 12.3 rates increase in June.

One Wellington resident said the increase has pushed their fortnightly rates bill from $170 up to $203.

Wellington Mayor Tory Whanau has previously acknowledged it was a tough economic climate, but said now was the time to be bold, rather than trying to keep rates down.

“We have to make those significant investments in our city now. We haven’t done it that well in the past, and if we don’t do it now, we’ll see higher inflation and construction costs escalate, so it will become much more expensive over time.”

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.