Simeon Brown: Local Government Minister explains why he felt the need to appoint a Crown observer to Wellington City Council

The Local Government Minister is determined to fix the 'dysfunction' and uncertain financial conditions impacting Wellington City Council.

Simeon Brown today confirmed he will appoint a Crown observer to help the council develop a new Long-Term Plan.

He says he informed mayor Tory Whanau of his reasons before confirming this decision.

"It was a professional conversation, I informed her of the decision I'd arrived at based on a number of reasons."

LISTEN ABOVE

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
The government though, is going to appoint a Crown observer
to Wellington Council. The local Government Minister's worried about dysfunction
and financial management, particularly with regards to paying for fixing
for the pipes. That, of course is Simmy and Brown.

Speaker 2 (00:10):
Who's with us A samn good evening.

Speaker 1 (00:12):
Have you heard from Tory yet?

Speaker 2 (00:15):
Oh? I spoke to her earlier today, prior to announcing
my decision, and I informed her that I'd be putting
an observer in and outline the process to her. She's
to her obviously. We've now written to her. She now
has ten days to respond based on under the law
on the terms of reference.

Speaker 1 (00:35):
Was she surprised?

Speaker 2 (00:37):
Oh, I didn't get the sense of that. I thought.
I think it was. It was a professional conversation. I
informed her of the decision I'd arrived at based on
a number of reasons, one of the dysfunction, two financial management,
and three how they've been how they're using their balance
sheet to invest in water infrastructure, which of course Wellingtonians
now is a significant issue for the city.

Speaker 1 (00:58):
How explained to me how you've come to the conclusion
that rate payers are being overcharged by seven hundred million well.

Speaker 2 (01:04):
One of the pieces of advice that I received from
the Department of Internal Affears is in regards to how
they are utilizing their balance sheet to effectively invest in
water infrastructure, is based on their long term plan. Effectively,
of the one point one billion dollars, well one point
one six billion dollars that's been proposed to spend on

(01:26):
what cap X, ninety four percent of that has been
funded through rates revenues and only six percent through debt financing.
And effectively, these are intergenerational assets, the long term assets,
and that's highlighting that they're not utilizing their balance sheet
appropriately in order to invest in these long term assets.

(01:47):
And so that's an issue which has been highlighted. And
again Valingtonians well know that what infrastructure Wellington is an
incredibly poor state. And so again it's just another of
the reasons why we've taken this step to put an
observer in place as they redo their long term plan.
As we know this is an incredibly important issue for
the city.

Speaker 1 (02:07):
So I mean, because this use of the balance sheet
has not come up before, there is now some speculation
that you are using this to reverse engineer a decision
and basically justify a decision you have already made.

Speaker 2 (02:21):
No, not at all. I mean we ask for advice
in regards to the situation in Wellington. I think, as
you and your listeners know, there's been increasing concern over
the governance of Wellington City Council for some time now.
We ask for advice. The advice covered a range of
issues in relation to not only the decision made around

(02:41):
the long term plan a couple of weeks ago to
effectively relitigate it, but looked at other issues the council
as well. So that advice came to me and on
the basis of that, we've chosen to put an observer in.

Speaker 1 (02:53):
Is the Crown monitor that you will appoint basically just
going to watch and report or do you expect them
to be more active providing guys and advice and so on.

Speaker 2 (03:02):
Well, they will be able to provide guidance and advice
not only to the Mayor and the counselors, but also
to council officers as well. And I think that's really
important because ultimately those council officers have a huge amount
of power and influence in terms of the decisions that
are made by the council. Have been very clear though
to the meyor end in my public statements, this Crown
Observer will not be undertaking any of the democratic decision making.

(03:24):
That democratic decision made again, accountability sits fairly and squeally
with the mere end Who counselors.

Speaker 1 (03:30):
Okay, do you need some names, because I've got some
names for you, Because what you need, I understand is
a lefty who can understand books.

Speaker 2 (03:37):
Well, look, I'm getting advice from the department in regards
to some proposed names and then we'll be going through
that process.

Speaker 1 (03:44):
So that's you telling me gently that no, you don't
need the names that I've got because I've got Steve
mahari I for you, fran Wilde, Rob Campbell, and who
there was somebody else as well. I can't remember, but
Peter Dunn. Those are good names, aren't they.

Speaker 2 (03:54):
No, No, those are all good names. We appreciate the feedback.

Speaker 1 (03:58):
Thank you, Thank you. I'll pass that on. I appreciate
yet at Simmy and good luck with us shimozzle that
you're dealing with now, Simmy and Brown the local government minister.
They for more from hither Duplessy Allen Drive listen live
to news talks. It'd be from four pm weekdays, or
follow the podcast on iHeartRadio