Wellington council intervention: Tory Whānau mayor accepts appointment of Crown monitor

Wellington’s mayor welcomes the Local Government Minister’s decision to appoint a Crown observer to the city council.

It comes after the council voted to stop selling its 34 per cent stake in Wellington Airport.

The sale was part of the council’s long-term plan and the proceeds were to be used to set up an investment fund.

The council now needed to amend its long-term plan.

In a statement, Local Government Minister Simeon Brown said he was concerned about the council’s ability to pass the amendment.

“Under Part 10 of the Local Government Act 2002 (the Act), I have powers of assistance and intervention in relation to a local authority that has a problem. Following the advice of officials, I have discovered that there is a serious problem within Wellington City Council that ensures that the Government will appoint a Crown Monitor.

“The advice provided to me by the Home Office highlights that the council is not using its balance sheet properly to maintain critical infrastructure such as water and is failing to properly manage its insurance risks. These risks have been increased by the recent decision to amend the long-term plan.”

Brown said the government had written to the council and outlined terms of reference for the presence of a Crown monitor.

The council now had 10 days to respond.

The terms of reference included:

• The Act allows the Crown to require the council to pay the salaries of observers and any expenses incurred in connection with their appointment if the Minister decides that this is reasonable in the circumstances;
• According to the Terms of Reference, the government remuneration will be received from the council in accordance with the above subsection of the law;
• It states that they will be paid at an unspecified rate in accordance with Cabinet regulations;
• The Crown Monitor will provide monthly updates to Brown, as well as an interim report by February 28, 2025;
• The Crown Monitor’s term will expire on July 31, 2025 – unless the Minister of Local Government decides otherwise;
• The final report will be submitted as soon as possible after the end of their term of office;
• The Minister may decide to terminate it earlier if he is satisfied that the appointment is no longer necessary.

Mayor Tori Whānau said she was currently reviewing the Terms of Reference.

“I believe we accept that and work constructively with whoever is appointed. “Ultimately we all want an amendment to the long-term plan that delivers the best outcome for Wellingtonians.”

Wenau said Brown rightly pointed out instances in which council members walked out of meetings, refused to vote and publicly criticized each other and council staff.

“I hope this intervention serves as a reminder to councilors that in fact we all play an incredibly important role on behalf of our city and we must do better.

“We must use this as an opportunity to put past differences behind us and develop a coherent plan that delivers the best for the people of Wellington.”

Deputies reacted to the decision

Whānau said she would like to see the Prime Minister and his coalition partners embrace localism, as they did before the election, and work with local councils to help them find solutions to address increased insurance risk and water infrastructure problems .

“What I’ve seen in the last hour is a lot of hits. We need help, not blows.”

Whānau’s comments came after ACT leader David Seymour and New Zealand First leader Winston Peters shared their views on the decision to appoint a Crown monitor.

Seymour said it was time for the government to intervene, but at first “lightly”.

“If they don’t do their job well, then Parliament and the government also have the legal ability to take steps to get a fair deal for the taxpayer.”

Peters said he supports the move.

“I am concerned that a city that was once vibrant is being destroyed. This is the worst thing I’ve ever seen in my long career coming to Wellington.”

Peters attributed this to “political interference and bureaucratic interference” that had no respect for business and customers.

Te Pati Māori co-chair Debbie Ngarewa-Packer said the writing was on the wall for the council.

“You always have to be aware of what voters want for their local government. They are the ones who put council members and the mayor in their place. So I think the mana of it has to be respected first.”

The Greens and Labor saw the decision differently.

Green Party co-leader Chloe Swarbrick said it was a “really welcome distraction” from the wider issue of local government funding.

She said the real problem is that local governments across the country lack the resources to carry out their mandate.

“If the government wanted to solve this fundamental problem, it could do so, but here it (would rather) play with this distraction.”

Labor leader Chris Hipkins said there would likely be other councils that would need monitors if the government used that threshold.

He said many councils were struggling to make their long-term plans due to changes in water legislation.

“Many councils are also under a lot of financial pressure, so if this is the start of an ongoing process, you won’t find many councils that won’t end up with some kind of intervention.”

Hipkins said he doesn’t agree with some of the decisions made by the council, but voters need to do something about it.

“There is clearly a lot of concern among Wellingtonians about the way their local government is currently operating. “I’m saying the elections are coming up next year and then they can do something about it.”

Deputies reacted to the decision

Wellington councilor Diane Calvert said she was pleased with the decision as it was what she had called for.

Councilor Nicola Young said the move was not unexpected.

“I think it’s a positive thing, I feel relieved,” she said.

“I feel like the cavalry is riding over the hill to come to the aid of the city council.”

Councilor Teri O’Neill said: “I remain committed to bringing positive change to Wellington.

“The mayor is pushing LTP reform, council members are engaged, and we are making progress every day on addressing the minister’s concerns.

“Transparency is always a good thing: those who act with integrity and have good governance have nothing to fear.

“If an observer can help us concentrate, great. At the end of the day, it’s about serving our people.”

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