Airport ultimatum could leave Wellington City Council without budget, plans paused

Wednesday, 12 June 2024

Councillor Nureddin Abdurahman is trying to get another vote on the airport share sale but hopes to get the votes to reject the council’s coming budget if he is declined.

A Wellington City councillor’s ultimatum over the airport share sale fallout is threatening to leave the council without a budget from July 1.

It could threaten new programmes budgeted for the coming financial year, including increased money for pipes, Golden Mile works, and the council’s plan to sell airport shares to set up a fund to help it after a natural disaster.

A council committee recently voted for the council to sell its 34% stake in Wellington Airport. Councillor Nureddin Abduraham, who opposed the sale, said the council had two options to stave off his plan to derail the entire coming 10-year plan vote.

Councillor John Apanowicz says failure to deliver a long-term plan could threaten planned projects.

It could have a full council vote on selling the shares again. That would likely pass as the two pouiwi Māori appointees, who both voted for the sale in committee, can’t vote on the full council.

Or it could get two long-term plans done – one including the share sale and one without – and audited before the late June meeting, meaning councillors could vote on the one they wanted.

Failing that, Abduraham said he would be lobbying the council to vote down the long-term plan. It is understood seven of the 16 around the council table are considering voting against the full plan so two more votes would be needed to get a majority. Abduraham was optimistic he could get the numbers.

Professor Dean Knight, of the Victoria University of Wellington law faculty, said councils missing the long-term plan deadline was “not a common event but not a rarity either”.

Local Government New Zealand confirmed there was provision in the Local Government Act to extend the deadline for the long-term plan from June 30 to September 30. Under that scenario, the previous long-term plan would be rolled over.

However, it could be complicated by the fact that Wellington City’s long-term plan includes a levy on ratepayers to pay for a new sewerage plant and that may need funding sooner.

Councillor John Apanowicz, the deputy chairperson of the committee shepherding in the next long term plan, said failing to adopt it would mean all new projects planned for the July 1 to June 30 year would be in jeopardy.

“If you don’t have a budget you are not able to spend,” he said.

That would put projects such as increased pipe fixes, a new waste plan including roadside organics collection, and possibly the Golden Mile revamp at risk.

It meant the council could not impose its planned rates increase of about 18%, part of which was the levy for a new sludge plant.

Professor Dean Knight, of the Victoria University of Wellington law faculty, said councils missing the long-term plan deadline was “not a common event but not a rarity either”.

Consequences involved a “telling-off” from the auditor-general.

“It’s not a good look and it’s not out of the question that it might have implications for lending or other commercial arrangements.”

Council chief strategy and governance manager Stephen McArthur said the ability to extend the long-term plan deadline to September 30 was specifically geared at water reform.

A late adoption of the plan would mean the council could not set rates from July, with the new rates expected to be charged from September 1.

A delay could have implications for the sludge levy, charged on top of rates for a new treatment facility and some projects could be delayed.

Mayor Tory Whanau said the plan had already passed by a majority vote in committee.

“It would be unprecedented if elected members attempted to make major changes to the [plan] at this point in the process, particularly because this will remove mana whenua representatives from being able to have their say on our long-term plan decisions,” she said.