Live: Wellington mayor says she doesn't intend to cut critical projects

Wednesday, 16 October 2024

Wellington Mayor Tory Whanau insists her council does not need Government intervention, despite uncertainty over long-term plan.

For full coverage of the ongoing saga in Wellington, follow the live updates below.

Wellington mayor Tory Whanau called an urgent meeting as calls grow for the Government to intervene in the management of the capital’s council.

Whanau told Stuff she had called councillors to a 2.30pm meeting, a day after ministers indicated they were willing to hard-ball Wellington City Council - with talk of “intervention” such as appointing an observer.

The meeting has now finished.

Whanau said the meeting was called to discuss the council’s long term plan, which was effectively sent back to the drawing board when the council U-turned on its decision to sell shares in the airport. The proceeds from that sale had been baked into the long-term plan, which was agreed on four months ago.

Whanau voted for the share sale to continue, but was in the minority. Councillors voted nine to seven to stop the sale.

The council is now scrambling to form a new long term plan.

Wellington City Council faces government intervention over its finances following a decision to abandon the sale of airport shares. The Prime Minister warns the situation could prompt an early local election. Stuff's Imogen Wells reports.

Whanau, appearing to seize on the pressure coming from central Government, called councillors to an urgent meeting on Wednesday.

“I am focused on finding a solution to the council’s insurance risk through the long term plan amendment. Today I will be meeting with councillors to discuss options,” she said.

Selling 34% of the council’s shares would have generated funds to go into a fund for emergency preparedness.

That fund of almost $500 million would help pay for insurance costs, and prepare for a rebuild - if a major natural catastrophe was to require one. The council is also underinsured by $2.6 billion, and that amount is rising.

Wellington Mayor Tory Whanau has called councillors to a meeting.

Finance Minister Nicola Willis, who lives in Wellington, described the council as a “shambles” on Monday.

On Tuesday, Prime Minister Christopher Luxon said the Government had “concerns” about the council and would intervene if it had to.

Local Government Minister Simeon Brown said he was seeking advice about the council

“I’m concerned about the impact that the council relitigating its Long Term Plan might have on ratepayers,” he said.

He said he had asked for advice about what options he had to intervene in Wellington City Council.

Under the Local Government Act, Brown could also appoint a commissioner or observer, ask for information, form a Crown Review Team, or even call for an early election.