“Today’s hui with all councillors was very productive. There is a strong commitment to deal with the challenges before us”, she said.
Several councillors pushed back against the threat of a Crown observer or commissioners with one saying: “It’s unacceptable’' and “We have not broken the law”.
The sale was designed to help solve two serious financial risks: the council’s $2.6 billion under-insurance problem and the lack of diversity in its investment portfolio. The proceeds were going to be invested into a perpetual investment fund.
The council now needs to amend its LTP and cut hundreds of millions of dollars in capital spending to create additional debt headroom to respond to insurance risks.
She said councillors agreed they must address the insurance risk and to help achieve that they needed to reduce debt consistently over the next decade to reach $500m of debt headroom, in case there is a disaster such as an earthquake.
“I do not intend to cut projects that are critical for our city’s growth and sustainability. For me, that means protecting our social housing, and continuing funding for water and key climate initiatives.”
Councillor Ben McNulty said there was a lack of ego in the room at Wednesday's urgent meeting for all councillors. Photo / Mark Mitchell
Whanau said there was a shared commitment from councillors to investigate the sale of the council’s ground leases and carbon credit holdings to form an alternative investment fund or something similar.
“None of the decisions ahead of us are easy, but a majority of councillors and Pouiwi support this approach and are committed to doing what is right for our city.”
Whanau will meet with Local Government Minister Simeon Brown about the issue tomorrow.
Labour councillor Ben McNulty, who played a key role in stopping the airport shares sale, said it was the most productive meeting he and his colleagues had had.
“There was a lack of ego in the room, for once, a lack of politics. The airport’s done and dusted, no one’s relitigating that and we’re moving on.”
“After today, with what the mayor’s going to bring to the minister tomorrow, any Government intervention at that point is politics rather than actually the issue being addressed.”
Asked how damaging the past week had been for the council, Iona Pannett said she had been a councillor for a long time and this was not the council’s first big argument.
Pannett said talk of Government intervention was “unacceptable”.
“This is a democratically elected body. We have adhered to the law, we have listened to our communities and we’re just making some decisions — that’s all.
“This is the normal business of council. Councils, you have to remember, make their decisions in public, unlike Cabinet, so it’s very, very transparent.
“It can be a bit messy, but we’re still making good decisions.”
Councillor Tim Brown said there was a great deal of enthusiasm to be proactive and responsible in the way councillors address the challenges faced.
He had confidence in the council and the mayor’s ability to sort this out.
Coucillor Ray Chung said his preference was for Wellington City Council's local body election to be held early. Photo / Mark Mitchell
Asked whether she had concerns about the mayor’s leadership, Councillor Diane Calvert said: “We need to see how the next month or so goes”.
It was still unclear exactly how much would need to be cut in capital spending, she said.
As for what could be cut, Calvert suggested social housing upgrades could be done more quickly and cheaply and money could be saved from transport projects.
She said water investment should not be touched, describing it as sacrosanct.
Councillor Ray Chung said he would prefer for next year’s local body election to be brought forward rather than sending in commissioners.
“We’re trying to maintain democracy … wouldn’t that be a much better option?”
Chung has already announced he will be running against Whanau for the mayoralty.
Asked today if he had confidence in Whanau, Chung said: " If I had confidence in her, I wouldn’t be running for mayor.”
Brown said the Government was yet to receive advice but ministers were concerned because the council looked like “a shambles”.
“Ultimately, this is concerning for Wellington ratepayers who are looking at this and asking, ‘What does this mean for my rates bill — I’m already facing some of the highest rates in the country, is that going to make them go up even further?’”
Brown said he was looking at options under Part 10 of the Local Government Act. These include formal requests for information from the council, appointing a Crown observer, a Crown manager, or even a commission.
There was a “high threshold” for intervention because the council had been democratically elected, he said.
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.
