Elected members also voted to keep residential rates at a 7.7 per cent increase for the average household. Video / Supplied
Auckland Mayor Wayne Brown has landed his first budget after six tumultuous months, selling fewer shares in Auckland Airport than he wanted and nudging household rates above inflation.
After nearly two days of debate at the Auckland Town Hall, Brown made some last-minute changes to secure a sizeable majority of councillors, including the backing of the left’s Shane Henderson and Richard Hills to vote for the centrepiece of his plan - the sale and reduction of the council’s 18.1 per cent stake in the airport to 11.1 per cent.
The votes of the two Labour Party members were too much for the Labour councillor for Manukau, Alf Filipaina, who verbally attacked Henderson after the vote for not following the party line.
Henderson was seen with his hands in his head at his chair, being consoled by deputy mayor Desley Simpson. He did not want to comment on the incident when approached by the Weekend Herald.
Shortly before the vote, Henderson said it had been “tough, really tough”.
Shane Henderson said it was really tough budget. Photo / Michael Craig
Left-leaning councillors also got a flea in their ear when two members of Auckland Action Against Poverty, Brooke Pao Stanley and Agnes Magele, shouted abuse at them from the public gallery over the share sale and borrowing money to plug the $325 million budget hole.
They eventually left the council chamber on their own accord after Brown called for them to be removed.
Brown said the budget had been passed with more relief than joy, calling it a prudent, balanced budget for Aucklanders.
It includes the selldown of airport shares that will allow $865 million of debt to be paid down saving $23m in interest costs from July when the budget kicks in. Debt will increase by about $100m.
The partial sale means the council has to make another $37m of savings to balance the budget. Other savings include reinstating $4m of cuts to local boards, and council chief executive Jim Stabback having to cut spending by a further $5m.
The budget leads to a 7.7 per cent rate rise for households and 11 per cent overall. That is because businesses pay higher rates.
Brown said the budget represents a large reduction in the council’s debt, protects core services and keeps rates under control.
“It is the start of the work to fix the council’s budget and secure our financial sustainability.
Mayor Wayne Brown (left) has asked chief executive Jim Stabback (right) to cut spending by a further $5 million. Photo / Michael Craig
“After 29 workshops and over 90 hours of formal discussion, we have reached a decision on the most challenging and contentious budget in the history of Auckland Council,” he said.
The budget process started last December with Brown’s first budget proposal containing savage cuts to social services, the arts and across the council group. Following a record number of submissions during public consultation, the mayor softened many of the proposed cuts highly valued by the community.
Not everyone was happy with the end result.
Councillor Mike Lee said it was a disappointing day, especially with the loss of an earlier budget proposal by councillor Lotu Fuli to retain the airport shares.
“This is the first step to a complete sellout and the sale of Ports of Auckland. Selling income-earning assets is a failed strategy and a race to the bottom,” Lee said.
Councillor Greg Sayers, who has previously voted against budgets, supported Brown on this occasion, saying taking on more debt was the approach under mayors Len Brown and Phil Goff, adding “Aucklanders are sick of it”.
Kerrin Leoni was one of six concilllors to vote against the budget. Photo / Jason Oxenham
How councillors voted
For: Wayne Brown, Desley Simpson, Andy Baker, Chris Darby, Christine Fletcher, Shane Henderson, Richard Hills, Daniel Newman, Greg Sayers, Sharon Stewart, Ken Turner, Wayne Walker*, John Watson*, Maurice Williamson.
Against: Josephine Bartley, Angela Dalton, Alf Filipaina, Lotu Fuli, Mike Lee, Kerrin Leoni.
Abstained: Julie Fairey.
* Councillors John Watson and Wayne Walker voted for most of the budget but recorded their votes against the decision to sell the airport shares.
