Campbell Barry: Lower Hutt mayor voices concern over Government intervention for Wellington City Council

There's claims the Government needs to show its justification for intervening in Wellington City Council.

It's appointing a Crown observer - claiming it is financial mis-management for the Council to plan to fund water infrastructure from rates revenue - rather than debt, using a Government tool.

Lower Hutt Mayor Campbell Barry notes the Government only made its funding tool available in August, not June when the council decided its Long Term Plan.

Barry says this doesn't add up.

"What I think should hopefully clear up the matters is for the minister to release the advice that he received from officials - so we can all see and understand it in its full context." 

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Episode Transcript

Speaker 1 (00:00):
There are ongoing questions about the Government's reasons for intervening
in Wellington City Council, given that one of the reasons,
which is that the council is using rates to pay
for pipes rather than debt to paper pipes, is something
that actually plenty of other councils are doing as well.
Campbell Barry is Lower Hutsmare and with us Hey Campbell
Hi Heaver. Does your council do it too?

Speaker 2 (00:20):
Each council is different, However, it's not uncommon, given council's
financial constraints in the structure that we have to operate within,
for rates to be somewhat front loaded to pay for
the obstructor investment we need to do so, it's not uncommon,
and I would say a number of particularly growth councils
would be in a similar position.

Speaker 1 (00:38):
How many of them are doing it to the extent
that Wellington City Council is though, I mean it's ninety
four percent rated and only six percent loaded on debts.

Speaker 2 (00:46):
I wouldn't be able to say without going through the
detail on that. What I would say, however, is the
solution is in water reform, and one of the solutions
which the Government has put on the table for councils
was announced in August and unless Wanington City Council was
a time traveler, they wouldn't have been able to implement
that in their long term plan in June.

Speaker 1 (01:05):
Well, that is what you're talking about there is the
fact that the government gave us in August the option
to be able to put it through this cheaper debt.

Speaker 2 (01:12):
Yeah, yes, that's right.

Speaker 1 (01:14):
Okay, But that doesn't mean that's the only debt available
to Wellington City Council. There was always debt options. They
could have just gone and got debt.

Speaker 2 (01:22):
I think there are a number of options for councils
and how they choose to prioritize and fund their work programs.
The question from me or for me as that grounds
for intervention because that means that there are a number
of other councils potentially who could be staring down that barrel,
So that that is a concern and I think that
it's one worth raising around this clearly.

Speaker 1 (01:41):
As though not just that, right, this is just one factor.
There are a multitude of problems there though, wouldn't you agree?

Speaker 2 (01:48):
Oh? Look, I think the issues in Wellington City Council
have been well canvassed I don't need to go through them.
Of course, when you create a significant financial whole in
your long term plan a few months after passing it,
I think that's always going to be something that draws
the attention of government, No question, Campbell.

Speaker 1 (02:05):
It sounds to me like you don't buy the government's
reason for intervening. Is that fair?

Speaker 2 (02:10):
I don't buy the reason which says you did not
use a tool which we have given you through water
reform in August when they pass their plan in June.
That doesn't add up. What I think should hopefully clear
up the matters is for the Minister to release the
advice that he received from officials so we can all
see that and understand it in its full context.

Speaker 1 (02:30):
Okay, Campbell, thanks for that, man, I appreciate it. That's Campbell,
Barry lowerhearts Mare. For more from Hither Duplessy Allen Drive
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