Nicola Willis says Wellington City Council is a shambles, Government watching very closely

Finance Minister Nicola Willis says the Wellington City Council is “a shambles” and the Government is prepared to intervene if required.

“We have what appears to be not a very functional council in Wellington right now,” Willis told Newstalk ZB Drive host Heather du Plessis-Allan on Monday. “We take that pretty seriously.”

Last week the council voted to stop the controversial sale of its 34% share in the airport. It’s a significant loss for Wellington Mayor Tory Whanau who championed the sale and planned her 10-year budget around it.

The council now needs to amend its Long Term Plan and cut up to $600 million in capital spending to create additional debt headroom to respond to insurance risks.

Asked whether it had reached the stage where the Government intervened, Willis said: “It’s a shambles and the fact that the Long Term Plan is now having to go back to the drawing board, that it’s already one of the biggest increases in rates in the country, that Wellingtonians are sort of despairing about the council’s focus on itself rather than the people it’s meant to serve - those are all factors that I’m certainly concerned about.”

The typical Wellington residential rates bill will be $3000 more expensive by 2028. This follows the latest rates increase, which averaged $1000 per household or an increase of 21%.

Wellington Mayor Tory Whanau supported the sale of the airport shares. Photo / Mark Mitchell

Willis said Local Government Minister Simeon Brown was also concerned.

“He is watching this situation very closely and he has a number of options under the Local Government Act.”

People often talked about commissioners but there other measures that could be taken, Willis said.

Brown was looking carefully at the situation and taking advice, she said.

“If there is an action that the Government can and should sensibly take, then we’ll be prepared to.”

Former Wellington mayor Dame Kerry Prendergast said she felt the council had reached the threshold for government intervention.

“It is getting that bad, in fact, it’s probably past that bad but it’s very difficult for a centre-right government to get rid of a democratically elected council and mayor,” Prendergast told Newstalk ZB Wellington Mornings host Nick Mills last week.

She suggested a Crown observer could be appropriate.

“If I was the observer, the first thing I would do is ask for a list of all the basic infrastructure projects and say those are the things going ahead and put a halt on everything else until we sort out basic infrastructure.”

Whanau told On the Tiles Local Edition, the Herald’s politics podcast, she did not agree government intervention was required.

“It’s a very high bar to reach something like that, we would have to have not met our legislative requirements. We’re not even close to that yet. That is usually the thing that brings in an observer or a commissioner.

“No amount of public campaigning or trying to convince the minister [is going] to do that.”

Whanau was still committed to a second term but was less focused on the election now that the Long Term Plan needed to be changed after the airport vote.

“I just want to get this right and I want to make sure we’re still delivering the best outcomes for Wellington city and I believe we can do that.”

Whanau said some people had been relentlessly talking negatively about the city.

“I just don’t think that’s acceptable any more.”

Wellington has experienced difficult times like any other city in the country and the world, Whanau said.

“But we’ve got to stop talking badly about our city because our city is wonderful.”

Brown said Wellington ratepayers expect the council to focus on delivering core services, keeping rates under control and having a financially sustainable plan for the future.

“While councils can amend their Long Term Plans, last week’s change of position will be concerning for Wellington ratepayers who have already faced some of the highest increases in rates across the country.

“Ratepayers are looking for certainty from Wellington City Council on the next steps, and what this might mean for their rates bill.”

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.