Commenting on this, Taxpayers’ Union Local Government Campaigns Manager Sam Warren said:

“There’s no doubt at all we need rates cap, but clearly we can’t afford to wait for another year of double-digit rates hikes.”

“Months and years of dysfunction have come to a crescendo. It’s a crushing decision while locals continue to suffer the heavy cost of poor decisions and planning by out-of-touch councillors.”

“$2.3 million on a light-up toilet block, hundreds of millions on cycleways and the not-so-Golden Mile, and a $563,000 bike rack outside the Mayor’s office have lead to rates soaring 47 percent in just three years.”

“There’s a good reason Tory Whanau received a ‘Lifetime Achievement in Waste’ Award at the annual Taxpayers’ Union Jonesie Awards earlier this year, and at this rate she’s on for a second one.”

“Wellington City Council cannot bring itself to prioritise ratepayers. It’s time to change the law now and force their hand.”

Damning results from Wellington's annual survey has been released show major declines in trust and confidence in how the City is being run.

“Alarm bells should be ringing. What has long been suspected has now been confirmed: Wellington residents have lost faith in Council.” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“Concerns have been raised over Council spending and lack of priorities. And, off the back of successive rate hikes, not one councillor can act surprised by the results. A rethink is desperately needed on how the City is being managed.”

“Delays and secrecy surrounding the survey’s full release also needs to be scrutinised. Councillors should have had access to this months ago, which would have better guided the City's Long-Term Plan.”

“Wellington doesn’t trust its own Council, and why should they? The last year alone has been a basket case of chaos and fingers-in-ears, as unpopular policies are rammed through extraordinary cost to ratepayers."

“Wellington is fast-becoming unliveable. It's a prime example of why rates capping is needed, so as to make the city more affordable, and keep Council focused on the basics.”

In order to protect local business, commercial rates must be cut, the Taxpayers’ Union says in response to new reports that Wellington businesses are being hit with rates nearly twice as high as other cities.

“Wellington’s rating system is anti-growth, anti-business, and out of step with the rest of the country,” says spokesperson Tory Relf. “A small business here pays almost double what Aucklanders do. It’s a disgrace. ”

“The Council charges businesses nearly four times the rate of residents. This extraordinary differential is a deliberate attempt to mask how high the overall rates burden has become in order to cover wasteful Council spending.”

“This isn’t fairness, it’s daylight robbery. Other cities support business while Wellington bleeds it dry and the result is empty shops, lost jobs, and a dying city centre.”

Officials advised lowering the rate differential last year yet Councillors refused.

“Even their own staff warned them. But they doubled down on failure,” Relf said.

“Anyone who walks around the city centre can see the effect this is having. If the Council wants to revive Wellington, it must stop treating businesses like the enemy. Cut the rates now, before it’s too late.”

A mega-merger between Wellington councils is being considered for a non-binding referendum that would combine the services and functions for the five authorities.

“Remember that big council doesn’t mean good council. What we got in Auckland was a cautionary tale; more bureaucracy and empire-building.” said Sam Warren, Local Government Campaigns manager for the Taxpayers’ Union.

“Closer collaboration between neighbouring councils to share costs and service delivery, in order to reduce the burden on ratepayer per capita, is always to be encouraged. Economies of scale is no promise—would this be the exception?”

“Work done by the Infrastructure Commission points towards diminishing returns once a population meets a certain threshold, suggesting that efficiencies from amalgamation are likely captured at relatively modest scales."

“The five councils can barely function by themselves; do we just trust them to ‘make it work’ when they’re inflated even more?”

“If a referendum is to take place, it’s essential that locals are front and centre—the risks and drawbacks are too expensive to get this wrong.”

Responding to news that Wellington City Council’s consultant costs have more than doubled since 2020, Taxpayers’ Union Spokesman Sam Warren said:

“This is incredibly insulting as a 12.0 percent rates increases has just been announced—on top of last year’s 16.9 percent hike. That’s more than a 30.9 percent compound increase to average rates in just two years.”

“Shedding a few roles just to replace them with overpaid consultants and higher paid bureaucrats on six-figure salaries isn’t saving. When’s it going to stop?”

“Claims made by Council that these higher salary and wage costs are reflected by ‘increased investment and delivery of services’ are a complete joke. Wellington locals need less waste and more efficiency from Council—and they’re getting the exact opposite.”

“It’s not rocket science. Council is making Wellington more expensive to live in. Cut the wasteful spending, learn to run lean, and get on with it—otherwise there won’t be anyone left in the city to pay your exorbitant wages.”

Wellington’s new chief executive, Matt Prosser, has received a warm welcome in the form of a special morning tea and welcome lunch, costing more than $12,000, courtesy of ratepayers.

“Atrocious first day for the new boss given rates are expected to increase by as much as 15.9 percent this year alone.” said Sam Warren, the Local Government Campaigns Manager for the Taxpayers’ Union.

“Seriously, whoever thought this was a good idea is the perfect depiction of what’s gone wrong with Wellington City Council. A half-day event costing this much is an insult.”

“Prosser, who is on a salary of more than half a million, says he ‘looks forward to understanding how best to serve Wellington’. I can tell him now, the best way to serve Wellington is leading by example and say ‘no’ to even more extravagant spending."

“Wellington needs a leader that can cut through the waste and focus on getting rates to an affordable level. He’s off to a poor start, we’ll be watching him closely.”

We've received confidential minutes and a briefing via the tip-line relating to CentrePort’s problematic BNZ building which suggests the building will not be fully reoccupied until the end of October.

What should be one of Wellington’s most modern and safest buildings looks to be still plagued with problems eleven months after the Seddon earthquake.

We understand that CentrePort is having to fork out more ratepayer money on seismic restraints on the risers and that there are now new problems with windows popping out in Pier 3.

If ever you needed an argument as to why ratepayers should not be underwriting property development, the BNZ fiasco is it.

Greater Wellington needs to abandon its policy of secrecy and explain how much these problems at the BNZ building are costing ratepayers. Latest estimates are in the tens of millions.

In May the Taxpayers’ Union revealed that the Greater Wellington Regional Council guarantees CentrePort’s debt, including borrowings related to property development.

MN_Minutes_PCG Meeting

The Taxpayers’ Union is slamming the property management skill at Greater Wellington Regional Council which has lost 95% of the purchase price of the building it used to occupy.

Information released to the Taxpayers’ Union under the Local Government Official Information and Meetings Act show that ‘Pringle House’ in Wakefield Street, also known as the 'Regional Council Centre', was purchased in 1987 for $22 million. In 2014 dollars, that is equivalent to $45.2 million. According to a recent independent valuation, the property is worth only $2.3 million. The documents reveal that ratepayers have taken a loss of more than 95% of the purchase price.

This shows why councils should be extra careful about managing property. At the time when Greater Wellington is taking a 95% loss on its own building, the port it owns is pushing ahead with the Harbour Quay property development, which Wellington ratepayers underwrite.

Last month the Taxpayers’ Union revealed that Greater Wellington had not bothered to enquire into the extent of damage and potential loss resulting from the Cook Strait Earthquakes (click here for DominionPost coverage).

These new revelations do not give us confidence that Greater Wellington are good stewards of ratepayer money. The Council should leave the funding of property development to the private sector and put a stop to risking public money.

Notes:

• Pringle House, the former offices of Greater Wellington Regional Council, were purchased for $45.2 million (inflation adjusted) in 1987.
• The building is now worth $2.3 million and is earthquake prone.
• Consultants have estimated that it will cost $32 million to bring the building up to acceptable standards.
• The costs to physically relocate the Council offices after the Cook Strait quakes last year were nearly $90,000 (not including staff time).
• Despite sitting empty, the building is costing ratepayers $17,000 per month.
• The Council has considerable property risks as debt guarantor of Centre Port’s ‘Harbour Quay’ property developments. 

 Letter from GWRC to NZTU 23 May 2014

 Attachment 1 to OIA 2014 065 - Telfer Young Market Valuation

Attachment 2 to OIA 2014 065 - Spencer Holmes Final Report on the RCC Building

Attachment 3 to OIA 2014 065 - Dunning Thornton Seismic Status Peer Review Report