October 15, 2024 • 9 mins
Wellington Mayor Tory Whanau has called an urgent behind-doors council meeting for this afternoon, as the government seeks advice on whether intervention is needed for Wellington City Council.
It comes after the council voted to ditch its plan to sell its 34% stake in Wellington Airport, meaning up to $600m in cuts will now be needed.
NZ Herald's Wellington Issues reporter Georgina Campbell joined Nick Mills to talk through the council's next steps.
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Episode Transcript
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Speaker 1 (00:07):
You're listening to the Wellington Mornings podcast with Nick Mills
from News Talks at B taking the pulse of the city.
The Capital Letter on News Talk.
Speaker 2 (00:17):
Sad be.
Speaker 3 (00:18):
Joining us for her regular Capital Letter slot. Is New
Zealand Herald Wellington's Issues reporter Georgina Campill. Good morning, George,
Good morning. What a week? What a week to be
a reporter, What a fortnight to be a reporter working.
I mean you're looking No, you're not looking tired. You're
looking wonderful. I can't say that.
Speaker 2 (00:36):
I would take it as a fear of observation if
you said I was looking a bit tired. It has
been a big couple of weeks. Wellington City Council was
certainly keeping the newsroom on its toes.
Speaker 3 (00:48):
What do you make of it? What do you make
of first? Let's start at the top. What do you
make of the airport vote?
Speaker 2 (00:54):
I mean, I think, I mean, like as I said,
I think last week, I wasn't sure which way it
was going to go, So it was it was such
a big call to make because of the ramifications of it.
But the meeting was sort of more about like the
(01:14):
council's relationship with MANI Fenoa. Really that like painted the
whole meeting and I think that's a very important issue.
But I think this week the council was starting to
come to grips with actually what their decision means and
the fallout of that. And of course we've started the
week with the government starting with Nikola Willis on Monday
(01:37):
English calling it a shambles. Now, just to be clear,
you and I might call it a shambles, but for
a senior minister to call it a shambles on News
to it was b not.
Speaker 3 (01:48):
A senior minister, Minister of Finance, Yeah, which which would.
Speaker 2 (01:53):
And that is a very strong language for her to use.
And then the next morning we have the Prime Minister
and Simeon Brown using very similar language and saying well,
we've actually asked for advice on this, we're seeking options
on potential interventions into Wellington City Council. Like it's really
escalated since that vote at the end of last week.
Speaker 3 (02:16):
So what's the latest, because you'll know the very very latest,
you'll have the hot scoop. What is it?
Speaker 2 (02:20):
Well, it's all happening. Councilors have been called to a
urgent meeting this afternoon. That's happening at two thirty. It's
scheduled for about an hour and a half, so we'll
be hitting the phones after that to see what councilor
has made of the meeting. Tory Farno has also requested
a meeting with Local Government Minister Simeon Brown. She has
(02:44):
issued a statement this morning saying she's focused on finding
a solution to the council's insurance risk, confirming that she's
meeting with counselors to discuss options, and she says that
you know they'll have more to say about their plan shortly.
Speaker 3 (02:58):
So you know whether she'll have advisors and all that
sort of stuff there or that, Because I just came
out before you came on the show and said the
very first thing she needs to do is just get
a counsel only meeting with her and try and regain
her leadership.
Speaker 2 (03:12):
I think I'm not sure who else will be in
the room, but I wouldn't expect like a lot of
other people to be in the room. It does sound
like this is for elected members to sort of figure
out how they're going to deal with this, and it
will be the first time that they're all in the
same room on this particular matter. They have had other meetings,
(03:32):
but on this particular matter since the airport vote, and
I think that the threat of government intervention would have
really kind of pointed out to them like, well, their
jobs are this is and that they need to actually
address it quite urgently.
Speaker 3 (03:48):
One hundred percent. Their job is now on the line,
isn't it Basically.
Speaker 2 (03:53):
Yeah, it is, it is, and it's certainly not a
good look when you have central government being concerned that
counselors can't do their jobs properly, to the point where
there's seeking advice on waste to intervene if needed.
Speaker 3 (04:10):
Right now. You had an interesting story this morning. Now
I haven't read the story, but I have seen the highlight,
I've seen the heading, and I know a little bit
about it from what I've read online. But you were
saying that the Wellington Airport or someone's issued a bit
of a potential warning at what it's going to cost
the council if they want to retain their shareholding. Is
(04:30):
this a little bit of bullying?
Speaker 2 (04:32):
No, this is just reminding counselors of the realities of
being a shareholder. It's not only that they get dividends
and get to own this asset that's making them money.
It's also that they might be called on to provide
hundreds of millions of dollars for the airport's expansion plans.
Speaker 3 (04:50):
Now, just to remind it, why didn't they announce this
before the vote?
Speaker 2 (04:53):
Though it's all in there, you Yeah, it's just taking
the time to read those public documents and it is
quite time consuming. It can be a bit dense. But
I did reread the itching and thought, oh, that's interesting.
So just to remind people, the Wellington Airport's twenty to
forty master plan includes a billion dollars of capital investments,
(05:15):
so they've got like terminal expansions, runway system improvements, new
freight facilities, all sorts of things. And these council documents
that councilors had this information available to them before the vote,
just reminded them of one of the ongoing risks of
retaining that shareholding, and that is that they could be
called on to help fund that growth plan. And of
(05:37):
course this is during a period where the council's own
financial position is quite constrained.
Speaker 3 (05:43):
So what happens now if everyone gets cold feed and says, yeah,
we were making we made our decision on the sale
of the airport shares based on you know, some things
that we didn't know, and maybe we take some time
out and we go back to the public and we
come back. Could they end up selling the shares? Could
there be a way that doing.
Speaker 2 (05:59):
That well to amend the long term plan? And they
do have to go out and consult on the public
with the public sorry again and with options that include
retaining the shareholding, selling the shareholding, or even maybe a
partial sale. The Council will indicate to the public what
their preferred option will be, which is retaining the shareholding.
(06:23):
So I guess technically, yes, they could change their minds again,
but I really don't think.
Speaker 3 (06:29):
That's what's going to happen.
Speaker 2 (06:30):
I'd be very surprised.
Speaker 3 (06:31):
It just feels like to me, and you know, when
your stories come out and tell us what you know
we should know and should have investigated, it kind of
feels like that that gives them an out to do
something like that. Though you know, we just can't afford that.
We can't afford spending that sort of money. We've now
made our decision based on you know, some more facts
that we've really thought about. Gives them an out.
Speaker 2 (06:53):
Maybe I mean they to me, that is just politically untenable.
Speaker 3 (06:57):
You flip flop like that, all right? Cool? I mean
they flip flopped.
Speaker 2 (07:00):
Before they have but to do it again again, you.
Speaker 3 (07:03):
Think it's a push too far, just for.
Speaker 2 (07:06):
The Obviously everybody else can't see my face right now,
but you look at me as in distress at the
thought of that.
Speaker 3 (07:12):
You're looking at me as if what's this idiot covered
up with dowbt.
Speaker 2 (07:15):
No, it's the Council's changing their mind again.
Speaker 3 (07:19):
Well, the thought of them changing the first time was strange.
You know, it created stress on a few people.
Speaker 2 (07:25):
I hope that you know, with the hundreds of millions
of dollars of capital spending that you know may need
to be cut, the fact that the government's looking at intervention.
You know, if that doesn't get the council to just
focus and work together and sort this out, then, honestly,
I don't know what.
Speaker 3 (07:41):
Well is Tori going to be okay? Will she get
through it? Do you think? Do you think, I mean,
you have a lot to do with her. You had
her on your Tiles podcast before we had her on
the show. You've got a lot of information from her.
Do you think she's going to be okay to get
us through.
Speaker 2 (07:55):
Well, she certainly thinks that she's going to be able
to get us through. Only time will tell, and maybe
the government might not let time towel because they'll step
in in the meantime.
Speaker 3 (08:06):
So you've got my pew clearly, I don't think the government,
if they're trying to fix things, I don't think the
government are going to go near it. I think if
they try and fix things and it goes to custard,
that's when we'll see something. But I think while there's
a hope the government, it's the last thing the government
really wants to do.
Speaker 2 (08:22):
I think the difference here compared to previous calls for
Crown intervention in recent years is that it's the LTP
that is the problem. Like that's huge, it's billions of
dollars of investment and it's the risk of them not
being able to sort that out that the government has
to decide whether that's a big problem or not.
Speaker 3 (08:42):
You're right as you always are, Georgina Campbell. Thank you
for coming in and joining us for your slot on
the show Capital Letter with Georgina Campbell. She is New
Zealand Herald's Wellington Issues reporter and she's all over the
main issues in our city.
Speaker 1 (08:58):
For more from Wellington Mornings with Nick Mills, listen live
to news talks It'd Be Wellington from nine am weekdays,
or follow the podcast on I Heard Radio
You're listening to the Wellington Mornings podcast with Nick Mills
from News Talks at B taking the pulse of the city.
The Capital Letter on News Talk.
Speaker 2 (00:17):
Sad be.
Speaker 3 (00:18):
Joining us for her regular Capital Letter slot. Is New
Zealand Herald Wellington's Issues reporter Georgina Campill. Good morning, George,
Good morning. What a week? What a week to be
a reporter, What a fortnight to be a reporter working.
I mean you're looking No, you're not looking tired. You're
looking wonderful. I can't say that.
Speaker 2 (00:36):
I would take it as a fear of observation if
you said I was looking a bit tired. It has
been a big couple of weeks. Wellington City Council was
certainly keeping the newsroom on its toes.
Speaker 3 (00:48):
What do you make of it? What do you make
of first? Let's start at the top. What do you
make of the airport vote?
Speaker 2 (00:54):
I mean, I think, I mean, like as I said,
I think last week, I wasn't sure which way it
was going to go, So it was it was such
a big call to make because of the ramifications of it.
But the meeting was sort of more about like the
(01:14):
council's relationship with MANI Fenoa. Really that like painted the
whole meeting and I think that's a very important issue.
But I think this week the council was starting to
come to grips with actually what their decision means and
the fallout of that. And of course we've started the
week with the government starting with Nikola Willis on Monday
(01:37):
English calling it a shambles. Now, just to be clear,
you and I might call it a shambles, but for
a senior minister to call it a shambles on News
to it was b not.
Speaker 3 (01:48):
A senior minister, Minister of Finance, Yeah, which which would.
Speaker 2 (01:53):
And that is a very strong language for her to use.
And then the next morning we have the Prime Minister
and Simeon Brown using very similar language and saying well,
we've actually asked for advice on this, we're seeking options
on potential interventions into Wellington City Council. Like it's really
escalated since that vote at the end of last week.
Speaker 3 (02:16):
So what's the latest, because you'll know the very very latest,
you'll have the hot scoop. What is it?
Speaker 2 (02:20):
Well, it's all happening. Councilors have been called to a
urgent meeting this afternoon. That's happening at two thirty. It's
scheduled for about an hour and a half, so we'll
be hitting the phones after that to see what councilor
has made of the meeting. Tory Farno has also requested
a meeting with Local Government Minister Simeon Brown. She has
(02:44):
issued a statement this morning saying she's focused on finding
a solution to the council's insurance risk, confirming that she's
meeting with counselors to discuss options, and she says that
you know they'll have more to say about their plan shortly.
Speaker 3 (02:58):
So you know whether she'll have advisors and all that
sort of stuff there or that, Because I just came
out before you came on the show and said the
very first thing she needs to do is just get
a counsel only meeting with her and try and regain
her leadership.
Speaker 2 (03:12):
I think I'm not sure who else will be in
the room, but I wouldn't expect like a lot of
other people to be in the room. It does sound
like this is for elected members to sort of figure
out how they're going to deal with this, and it
will be the first time that they're all in the
same room on this particular matter. They have had other meetings,
(03:32):
but on this particular matter since the airport vote, and
I think that the threat of government intervention would have
really kind of pointed out to them like, well, their
jobs are this is and that they need to actually
address it quite urgently.
Speaker 3 (03:48):
One hundred percent. Their job is now on the line,
isn't it Basically.
Speaker 2 (03:53):
Yeah, it is, it is, and it's certainly not a
good look when you have central government being concerned that
counselors can't do their jobs properly, to the point where
there's seeking advice on waste to intervene if needed.
Speaker 3 (04:10):
Right now. You had an interesting story this morning. Now
I haven't read the story, but I have seen the highlight,
I've seen the heading, and I know a little bit
about it from what I've read online. But you were
saying that the Wellington Airport or someone's issued a bit
of a potential warning at what it's going to cost
the council if they want to retain their shareholding. Is
(04:30):
this a little bit of bullying?
Speaker 2 (04:32):
No, this is just reminding counselors of the realities of
being a shareholder. It's not only that they get dividends
and get to own this asset that's making them money.
It's also that they might be called on to provide
hundreds of millions of dollars for the airport's expansion plans.
Speaker 3 (04:50):
Now, just to remind it, why didn't they announce this
before the vote?
Speaker 2 (04:53):
Though it's all in there, you Yeah, it's just taking
the time to read those public documents and it is
quite time consuming. It can be a bit dense. But
I did reread the itching and thought, oh, that's interesting.
So just to remind people, the Wellington Airport's twenty to
forty master plan includes a billion dollars of capital investments,
(05:15):
so they've got like terminal expansions, runway system improvements, new
freight facilities, all sorts of things. And these council documents
that councilors had this information available to them before the vote,
just reminded them of one of the ongoing risks of
retaining that shareholding, and that is that they could be
called on to help fund that growth plan. And of
(05:37):
course this is during a period where the council's own
financial position is quite constrained.
Speaker 3 (05:43):
So what happens now if everyone gets cold feed and says, yeah,
we were making we made our decision on the sale
of the airport shares based on you know, some things
that we didn't know, and maybe we take some time
out and we go back to the public and we
come back. Could they end up selling the shares? Could
there be a way that doing.
Speaker 2 (05:59):
That well to amend the long term plan? And they
do have to go out and consult on the public
with the public sorry again and with options that include
retaining the shareholding, selling the shareholding, or even maybe a
partial sale. The Council will indicate to the public what
their preferred option will be, which is retaining the shareholding.
(06:23):
So I guess technically, yes, they could change their minds again,
but I really don't think.
Speaker 3 (06:29):
That's what's going to happen.
Speaker 2 (06:30):
I'd be very surprised.
Speaker 3 (06:31):
It just feels like to me, and you know, when
your stories come out and tell us what you know
we should know and should have investigated, it kind of
feels like that that gives them an out to do
something like that. Though you know, we just can't afford that.
We can't afford spending that sort of money. We've now
made our decision based on you know, some more facts
that we've really thought about. Gives them an out.
Speaker 2 (06:53):
Maybe I mean they to me, that is just politically untenable.
Speaker 3 (06:57):
You flip flop like that, all right? Cool? I mean
they flip flopped.
Speaker 2 (07:00):
Before they have but to do it again again, you.
Speaker 3 (07:03):
Think it's a push too far, just for.
Speaker 2 (07:06):
The Obviously everybody else can't see my face right now,
but you look at me as in distress at the
thought of that.
Speaker 3 (07:12):
You're looking at me as if what's this idiot covered
up with dowbt.
Speaker 2 (07:15):
No, it's the Council's changing their mind again.
Speaker 3 (07:19):
Well, the thought of them changing the first time was strange.
You know, it created stress on a few people.
Speaker 2 (07:25):
I hope that you know, with the hundreds of millions
of dollars of capital spending that you know may need
to be cut, the fact that the government's looking at intervention.
You know, if that doesn't get the council to just
focus and work together and sort this out, then, honestly,
I don't know what.
Speaker 3 (07:41):
Well is Tori going to be okay? Will she get
through it? Do you think? Do you think, I mean,
you have a lot to do with her. You had
her on your Tiles podcast before we had her on
the show. You've got a lot of information from her.
Do you think she's going to be okay to get
us through.
Speaker 2 (07:55):
Well, she certainly thinks that she's going to be able
to get us through. Only time will tell, and maybe
the government might not let time towel because they'll step
in in the meantime.
Speaker 3 (08:06):
So you've got my pew clearly, I don't think the government,
if they're trying to fix things, I don't think the
government are going to go near it. I think if
they try and fix things and it goes to custard,
that's when we'll see something. But I think while there's
a hope the government, it's the last thing the government
really wants to do.
Speaker 2 (08:22):
I think the difference here compared to previous calls for
Crown intervention in recent years is that it's the LTP
that is the problem. Like that's huge, it's billions of
dollars of investment and it's the risk of them not
being able to sort that out that the government has
to decide whether that's a big problem or not.
Speaker 3 (08:42):
You're right as you always are, Georgina Campbell. Thank you
for coming in and joining us for your slot on
the show Capital Letter with Georgina Campbell. She is New
Zealand Herald's Wellington Issues reporter and she's all over the
main issues in our city.
Speaker 1 (08:58):
For more from Wellington Mornings with Nick Mills, listen live
to news talks It'd Be Wellington from nine am weekdays,
or follow the podcast on I Heard Radio
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