Mayor Tory Whanau during the Wellington City Council meeting at chambers in February. Photo / Mark Mitchell
The Government has set its sights on sorting out Wellington City Council.
Local Government Minister Simeon Brown has requested advice on potential interventions at Wellington City Council following a vote last week by the council to stop the controversial sale of its 34% share in the airport.
The vote means the council will need 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.
Herald Wellington issues reporter, and On the Tiles Local Edition host, Georgina Campbell told The Front Page that Mayor Tory Whanau has said in terms of those cuts, everything is on the table.
“She has outlined some of her bottom lines, or things that are non-negotiables for her. That’s the $1.8 billion investment in water infrastructure, the Golden Mile project, and selling the council’s social housing portfolio.
“Whanau’s said she’ll fight tooth and nail to protect these things, but she’s only one vote around the table and she has acknowledged that,” Campbell said.
Whanau is confident the vote would not be damaging to her mayoralty and has described it instead as being a bit of a blow.
“She said she woke up the following morning and felt that a weight had been lifted off her shoulders realising in the past two weeks that things were no longer going her way.”
This week, both Brown and Finance Minister Nicola Willis have commented on the saga, calling it a “shambles”.
Prime Minister Christopher Luxon signalled a potential for government intervention, saying they’re keeping an eye on the situation.
Campbell said some strong language has been used - which highlights the seriousness of what is happening.
“It’s really not a good look to have to amend a long-term plan that the council has only voted on as recently as June and I think the most worrying thing is the ramifications of the spending cuts,” she said.
But, what could government intervention actually look like?
“The Local Government Act says that the Government can intervene with the likes of a Crown observer or commissioners if it’s believed there is a significant problem.
“Simeon Brown has confirmed he’s asked for advice on potential interventions. Nicola Willis has hinted that it might be a Crown observer, which is a lesser form of intervention in that they come in, help the council to address its problems, monitor the council’s progress, and then recommend whether further intervention is required.”
Listen to the full episode to hear more about Wellington City Council’s woes, and what it could mean for the capital’s ratepayers.
The Front Page is a daily news podcast from the New Zealand Herald, available to listen to every weekday from 5am. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, or wherever you get your podcasts.
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