Letter to the Editor
Wellington LIVE – One Network

Dear Editor,

The Devil is ALWAYS in the detail

If anyone needs proof of what a dire position we are in as a city, how we as ratepayers are only being drip fed the information that suits the WCC narrative and how poor the financial decisions being made by WCC are then this is it!

Whenever asked how I feel about the sale of the airport shares, I have always said there was not enough information in the public arena to make an informed decision. The concept of having a fund that would not be affected by any local disasters has merit, however I have always had concerns that a sale would be used as a means of using creative accounting to increase debt……and now we find out that is exactly what it is!

While selling income generating assets to pay off debt is usually a poor decision, it is a far worse decision to sell them off in order to be able to increase debt!

According to the Post, WCC CFO Andrea Reeves has told councillors last week that “Without the sale of the shares providing more room for debt, the council would have to cut $450m of capital spending from the Long Term Plan and begin consultation with the community again.”

Surely this is a warning that the sale must NOT go through and that we need to drastically cut the non-essential projects that are crippling our city.

We are overspending at a rate that would make Imelda Marcos’s shoe purchases look modest and are putting an unsustainable burden of debt on not only current ratepayers but also all future generations.

When one of the questions during the “public consultation” stage on the Long Term Plan was effectively “Do you agree with selling the shares and setting up a perpetual fund to safeguard our investment from a future disaster” I find it extremely disingenuous that it only comes to light once submissions close that the sale will also result in substantially indebting our city further.

To put this in to context $450m more borrowing (at 5.5% which is WCC current cost of funds) is $24.75m annually in extra interest only payments !
With 54 comms staff employed at the council, whose no doubt generous salaries are paid for by the ratepayer, is it unreasonable to expect that we are properly informed on matters that are so significant to our future? Is it inappropriate that this information comes to light after public submissions close and 1 week before councillors vote on it? I think so.

Wellington deserves better!

Karl