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Political engines revving over Wellington City Council spending priority

Wednesday, 16 July 2025

The Nissan Mobil 500 Wellington street race was cancelled nearly 30 years ago.
The Nissan Mobil 500 Wellington street race was cancelled nearly 30 years ago.

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The long-dead Nissan Mobil 500 street race garnered a mention on Tuesday as Prime Minister Christopher Luxon took aim at the capital for falling behind other major cities in attracting events.

Not for the first time, he criticised Wellington City Council for spending on “nice to do stuff, not must do stuff”, while its convention centre, Tākina, struggled.

“We've got a loss-making convention centre here, that’s not the stuff that ratepayers expect councillors to be spending money [on]. They want councillors spending money on the basics, doing it brilliantly and building up good infrastructure,” he said, while answering questions on the upcoming “back to basics” for local government legislation.

Prime Minister Christopher Luxon criticised the council’s spending when events struggled.
Prime Minister Christopher Luxon criticised the council’s spending when events struggled.

Asked if it just took time to attract good events, Luxon said Wellington used to have the Nissan Mobil 500 ‒ a waterfront street race discontinued nearly 30 years ago due to rising costs, but an event he said brought economic activity.

The $180 million convention centre has struggled to achieve targets set out in its business case since opening in June 2023, with its first two major exhibitions failing to break even or reach their target visitor numbers and lower revenue expected over the coming years.

In contrast, Luxon said Christchurch’s Te Pae was a “fantastic” convention centre, driving huge numbers of people into the city and the local economy. “The same thing’s happening with [Auckland’s] convention centre, we’ve got a huge amount of forward bookings.”

Wellington mayor Tory Whanau hit back, saying Luxon seemed insistent on taking the country backwards by suggesting reinstating events from several decades ago, where audiences dwindled.

The new Inglewood Place toilets cost the council $2.3 million.
The new Inglewood Place toilets cost the council $2.3 million.

Wellington boasted some of the best and most unique events in the country, she said, from hosting sold-out sporting events this month to the upcoming season of World of WearableArt (WOW).

It was well known Wellington had been hit hard by public service job cuts, which had impacted events too, she said.

“It’s regrettable the prime minister grandstands instead of engaging with the facts. Unlike the Auckland and Christchurch convention centres, Tākina was delivered on time and on budget with zero funding support from the central government. It has hosted hundreds of events and brought over $90 million to our local economy so far.”

A recent Infometrics economic impact study found Te Pae generated more than $77m for the New Zealand economy. Wellington’s overall visitor spend last year was $73.8m.

Wellington’s convention centre opened in 2023.
Wellington’s convention centre opened in 2023.

Whanau said she did not understand how on one hand Luxon wanted more events and on the other wanted to introduce new legislation that might restrict ability for councils to support local events.

Also in Luxon’s firing line was the recently opened Inglewood Place public toilets ‒ open-all-hours loos with what the council says is “beautiful lighting” to help reduce anti-social behaviour ‒ as well as the Molesworth St cycle lane ‒ a source of friction with some local businesses and residents.

“How on earth do you spend $2.5m on a set of toilets that turn into a light show?” Luxon said.

According to the council, the facility includes two standard and three accessible toilets with baby-changing facilities, automated timed doors and hands-free controls. There is also a space where people with complex disabilities can use the toilet, change and shower.

Wellington Central MP Tamatha Paul said Luxon was “completely out of touch with what is happening outside of his Crown limos”.

“Luxon’s Government has decimated public service jobs, cancelled housing projects, cut people’s means of getting into the city via public transport and then is clueless about everything that happens outside the Beehive,” she said.

Council spokesperson Richard MacLean said the council’s investment in events in last financial year was $5.7m, with the resulting visitor spend about $73.8m.

Te Pae general manager Ross Steele said as a post-quake regeneration project, the centre had a responsibility to provide both an economic and social benefit to Canterbury. It supported 700 full-time jobs, he said.

Luxon’s comments come at a challenging time for the capital, with major music event Homegrown relocating to Hamilton after 18 years on Wellington’s waterfront, while Christchurch’s premier music festival Electric Avenue is expanding to two days on the back of increased international interest.

In another blow, Kiwi musician Lorde’s newly announced Ultrasound World tour will only stop in Christchurch and Auckland.

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