Yesterday, the council voted to stop the controversial sale of its 34% sharein the airport, with one councillor saying it was the “dirtiest politics” she had been involved with.
Whanau told On the Tiles Local Edition, the Herald’s politics podcast, she did not see the vote as damaging to her mayoralty describing it instead as “a bit of a blow”.
She woke up this morning with a weight lifted off her shoulders after realising in the past two weeks that she no longer had the numbers to sell the shares, Whanau said.
Wellington City Council owns a 34% share in the airport, which could have a market value of up to $500 million. Photo / Mark Mitchell
Asked whether she was worried about what the legacy of her first term would be, Whanau said: “Of course.”
“It’s been a difficult couple of years but again, for this last year, I’m just going to be super focused, hyper-focused, on delivering a successful Long Term Plan,” she said. “Yes, it’s had a pause and we’ve had to delay it but we can still get there.”
“It is getting that bad, in fact, it’s probably past that bad but it’s very difficult for a centre-right government to get rid of a democratically elected council and mayor.”
Prendergast suggested a Crown observer could be appropriate.
“If I was the observer, the first thing I would do is ask for a list of all the basic infrastructure projects and say those are the things going ahead and put a halt on everything else until we sort out basic infrastructure.”
Prendergast said residents could not afford high rates increases.
The airport shares sale has divided the council, cost the mayor crucial support and comes after her plan to reopen the “big black hole” that is Reading Cinemas also failed. Photo / Mark Mitchell
Whanau did not agree government intervention was required.
“It’s a very high bar to reach something like that, we would have to have not met our legislative requirements. We’re not even close to that yet. That is usually the thing that brings in an observer or a commissioner.
“No amount of public campaigning or trying to convince the minister [is going] to do that.”
Whanau was still committed to a second term but was less focused on the election now that the Long Term Plan needed to be changed after the airport vote.
Wellington was going through a transition phase after historical underinvestment, she said.
“Yes, it’s going to be difficult. Yes, it’s going to create tensions. But that is what change is like and hand on heart, I believe in our Long Term Plan with or without the airport.
“I still want to achieve the same things. Yes, I’ve made mistakes in the past but I’m someone who learns from them and moves on because, at the end of the day, all I care about is Wellington city.”
Selling the airport shares was designed to help solve two serious financial risks: the council’s $2.6b under-insurance problem and the lack of diversity in its investment portfolio.
Now that the sale has been stopped, decisions need to be made on the level of financial risk the council is willing to carry when it comes to future events like a major earthquake, Whanau said.
“Then we’ll have to decide again what our key priorities are for the city. For me, it’s water, infrastructure, transport, climate action and housing.
“Then we’ll need to look at our entire capital programme and be like: ‘Well, how can we still deliver those things but make these significant cuts?’”
Between $400 million and $600m may need to be cut from the budget which would be a challenging process, Whanau said.
“That’s why I’m calling on all councillors. We really have to come together and manage that through while still delivering the best for Wellington.”
Listen to the full episode of the On the Tiles podcast to hear more from the controversial airport shares sale meeting.
On the Tiles is available on iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts. New episodes are available on Fridays.
The podcast is hosted by Georgina Campbell, 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.
