Why Wellington’s ‘government town’ rhetoric is failing the city
Wednesday, 3 September 2025
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High commercial rates, fragmented decision-making, “rigid” and “expensive” regulatory barriers and a lack of commercial focus are stifling growth, leaving Wellington trailing behind other cities, the capital’s main business lobby says.
In a pre-election report, the Wellington Chamber of Commerce says the city’s future success meant shifting away from its “government town” rhetoric and embracing its private sector.
The report urges the new council to embrace reforms which include lower commercial rates, simplified regulations, a revised Business Advisory Council and targeted investment in innovation and housing.
“Businesses are feeling undervalued and under-represented”, says chairperson Greg Pollock.
Despite the private sector employing the most of the city’s workforce, it had trailed behind other cities for the past 15 years, with the private sector GDP growing half the rate of Hamilton and even further behind the rate of Auckland.
Its “government town” rhetoric had defined Wellington’s identity, the report said, and ambitious talent needed to be able to have careers that weren’t in the public sector.
“We must create pathways for ambitious talent who choose Wellington for its lifestyle but need career opportunities beyond government,” the report said.
“The infrastructure exists. The talent is here. The success stories prove our potential. What’s missing is recognition, deregulation and intentional support for the private sector that already drives most of our economy and holds the key to our future.”
Commercial ratepayers are paying 48% of rates - the highest in the country - but had minimal input into council’s economic strategy.
The report recommended the new council conduct a commercial rates review, benchmark those rates against other cities and take input from ratepayers for the best uses of rates.
It also suggested a new Business Advisory Council made up of eight key business leaders in Wellington appointed by the mayor and council to have real influence on decision-making.
A co-investment fund between council, venture capital and angel investment helping attract startups to build and grow in the city was another item on the chamber’s wishlist.
The Chamber of Commerce recommendations
A dashboard with all of council’s economic spending and measurable outcomes
Implement return on investment requirements on council’s economic development initiatives with a mandate to project and report economic returns
Investigate amalgamation benefits to ensure the best governance model is in place to deliver growth and certainty of investment
Require Council to consider the wider benefit of awarding contracts to Wellington firms to ease access for procurement contracts
Simplifying the tender process for contracts under $100,000
One-stop shop for all business interactions with Council, ensuring regulatory barriers are addressed at pace
Ensure existing businesses are supported to access funding and support mechanisms, particularly SMEs
Convert underutilised buildings into startup hubs
Create a startup map enabling real time visualization
Quarterly ‘problem solving day’ for Council and local business
Aligned events strategy for universities, startups and tech sector leaders
Push to bring top talent to Wellington and make Wellington the most accessible city in New Zealand for highly educated and specialised talent.
Ensure appropriate space is available for creative businesses.
24/7 creative zones where noise and hour restrictions don’t apply
Aat least one dedicated creative hub outside the central city for larger-scale creative work
Expedited consent for conversions meeting predetermined criteria, creating up to 5,000 new homes
Cooperation between central and local Government to accelerate Te Kainga housing programme 3 for affordable housing
Encourage commercial-residential mixed-use development in all central city zones without needing additional resource consent
Introduce urban amenity design guidelines that promote ground-floor vibrancy
Encourage adaptive reuse of older buildings to combine office, residential, and hospitality
Pursue public private partnerships to deliver infrastructure and housing rapidly
Co-fund the installation of climate resilience infrastructure
Pursue sustainable transport infrastructure
Launch a “City After Dark” strategy to reinvigorate nightlife and support after-hours economy, including licensing at pace to stimulate the hospitality sector
Deliver more lighting for safety, special rideshare hubs and investigate the cost of better and more frequent public transport within the central city at night.
Implement a cleaner streets programme
Consider a revised events momentum strategy to ensure Wellington is capitalising on the flow on effects for major events
Create a “Mobility for Youth” initiative with discounted public transport for people aged 18 to 30 working or studying in the city.
Build more frequent public transport connections between universities, startup hubs, the central city and residential clusters