These key events will re-shape Wellington

Friday, 24 January 2025

Before the local election in October, Wellington’s mayor and councillors will confront a number of thorny issues that could decide their fate at the polls. Stuff rounds up the biggest political landmines on the capital’s 2025 agenda.

FEBRUARY

Another painful rates rise looms.

After surviving a 16.9% average rates rise plus the new “sludge levy”, Wellingtonians are staring down a 15.9% increase from July. Late last year, the council announced the intended 12.8% increase for 2025/26 had ballooned out, courtesy of “known cost pressures” such as high inflation.

Councillors have asked officers to report back in February on ways to keep the original target. They’ll grapple with those recommendations at their first meeting of the year.

Inflation was expected to add another $5 to $8 million to council costs. With inflation falling to targeted levels, officers might revise that figure down in a fairly pain-free exercise. But expect lots of fiery debate if further spending cuts are required to meet the target – with councillors caught between infrastructure costs, the increasing unaffordability of city rates and outrage over the public amenities on the chopping block.

Rates will be front of mind when Wellingtonians cast their vote come October. Even if the council manages to keep the increase to 12.8%, residents’ bills will be nearly 50% higher than they were when the current council was elected.

Crown observer reports

By the end of February, we’ll hear from the $1000-a-day Government appointee tasked with bringing order to the city council.

As councillors wrangled with the competing priorities of keeping a lid on rates rises while finding billions to replace the city’s ageing pipes and plug an insurance gap, reports of dysfunctional behaviour – including councillors walking out of meetings and refusing to vote – hit headlines last year.

In response, Local Government Minister Simeon Brown asked Lindsay McKenzie, the former chief executive for two regional councils, to monitor the council and provide advice. McKenzie will also produce two reports on “the council’s ability to provide effective governance”.

The initial report is due to the Minister by February 28, though McKenzie will stay in the job at least until the end of July. His presence has chilled the political theatrics, with good reason: should the report be damning enough, Brown has the power to fire the entire council and replace it with a commission that would head Wellington City Council at least until the October election.

Unlikely as that might be, McKenzie has the chance to recommend further actions the minister should take.

With the final report set for early August just weeks before voting ballots are sent out, councillors will be wary of being named and shamed.

APRIL

Fight for City to Sea Bridge lands in court

Council’s controversial call to tear down the City to Sea Bridge will be revisited in late April, when it is forced to defend its actions in the High Court.

Days after councillors voted to demolish the iconic crossing, City to Sea Bridge supporters requested a judicial review, arguing the public had not been adequately consulted. In June, councillors voted against spending an estimated $230m strengthening the City to Sea Bridge and the old Capital E building beneath it.

The city council then asked for public feedback on two scenarios, where the crossing over six-lane Jervois Quay was torn down and at least initially replaced by a set of traffic lights and pedestrian crossing. Campaigners argue the public should also have been presented a third option where the bridge was saved.

Of the Wellingtonians who responded, the largest share asked the council to save the bridge. Despite that, councillors approved the demolition in early December.

Bridge supporters must convince the court that the council’s consultation was so flawed that it failed its legal obligations – a high bar.

Even so, the legal action delayed the City to Sea Bridge’s demise. The council originally intended to begin demolishing the bridge this month, but agreed to leave it as is until the court comes to a decision. The hearing is scheduled for April 28. Unless the judge dismisses the campaigners’ case outright, the crossing will survive until the ruling is released – which could take months.

MAY

Begonia House’s fate decided

News that the Botanic Garden’s glasshouse also faced the wrecking ball emerged in November, after the council clawed back $5m allocated to the building’s repair.

The 60-year-old building – which houses exotic plants such as the infamous Mr Stinky– needs repairs, and the cost to fully refurbish the greenhouse could cost up to $25m, including inflation.

Under the current funding plan, Begonia House will be demolished, although the cafe will be retained.

After environmentalists and engineers rallied to save the public amenity, councillors asked officers to find an affordable solution. Options will be presented early this year, and the public will get a chance to voice their thoughts before councillors make a final call in May.

Should Begonia House remain on the chopping board, councillors could find it hard to shake off accusations of cultural vandalism.

JULY

Thorndon Quay upgrade complete

A pedestrian, bus and bike-friendlier Thorndon Quay will be unveiled in the middle of the year. By this point, the arterial road will have endured more than 18 months of roadworks.

Thorndon Quay leads into the capital and is heavily used by commuter buses from northern suburbs. It is also home to homeware and furniture stores, and many businesses fought against the proposal to reduce the number of car parks to create cycleways and peak-time bus lanes.

The intrusive construction works, which began in November 2023, was another bugbear for local business owners. One of the street’s most famous institutions, Bordeaux Bakery, closed in October. Owner Tony Bates also shuttered his two other cafes in inner Wellington, though said the roadworks and longer-term impact from the Thorndon redesign sealed his business’ fate.

Freed from road cones, the revitalised Quay could prove a tangible achievement incumbent councillors could point to. It will all lie in the new road experience: whether the traffic flows better, buses arrive faster and cyclists and pedestrians feel safer.

The revamp could also help make the case for the Golden Mile upgrades – a project mayor Tory Whanau is particularly determined to get over the line. Construction is set to begin this year.

THROUGHOUT THE YEAR

Public sector job losses compound

Wellington has borne the brunt of the estimated 8000 public servants who lost their jobs last year.

And with the new year come fresh cuts, such as the loss of more than 300 jobs at Callaghan Innovation. After the Government’s books were found to be in worse state than expected, Finance Minister Nicola Willis confirmed further public belt-tightening and job cuts are on the cards.

One group of economists argue that, rather than stimulating economic growth, the Government’s spending cuts are on the whole dampening consumer confidence, hurting retailers and hospitality businesses and prolonging the recession.

As voters across the world toss out incumbent governments in the face of the skyrocketing cost of living, local politicians may ultimately have little influence over the wider economic issues that will incentivise city voters.