Letter to the Editor
Wellington LIVE – One Network
Dear Editor,
What a terrible day for Wellingtonians as the council in their infinite wisdom have voted to approve a Long Term Plan that will not only see them exceed their own “self imposed” borrowing limit over the next 2 years (despite the fact that it increases at the same rate as rates do. Ie over 17% this year alone.) but will also see Wellington’s debt reach $2.5 billion by the end of 2028. The servicing of the interest on this debt alone will exceed $1,700 per rateable property every year to eternity . ($1,955 really as we pay GST on rates… or put another way the household will need to earn close to $3,000 before tax to cover this interest!). Money that goes straight to banks and can therefore no longer be used for things that enhance our city ie water infrastructure, supporting the arts and entertainment sector, cleaning up and enhancing the city, sports field maintenance, etc. All this lost for green projects ( that may have merit in future years when we can fund them within our means- but which we can not afford at this time) and cycleways that disadvantage more than they advantage by not only clogging up our cities and reducing our parking income stream but also killing off the businesses they block access to.
Considering it was just over $400m in 2017, and we have gone nothing but backwards as a city since then, to say we are mismanaging our city is an understatement.
In the end the vote on the LTP became as much about the desire for the majority left to retain public assets vs. their desire to spend our money freely without any thought to the consequences for years to come.
The ironic thing is that the LTP, as bad as it is, only works if they sell the shares and free up borrowing ability. This is due to the fact that they have worked their numbers around a full sale despite the fact it hadn’t been finalised or even gone out for “public consultation “ at this point.
But as Councillor O’Neill pointed out the final vote on the airport shares happens in December once the process is worked out. Council officers will spend months working on the sale process, undoubtedly engaging expensive consultants to advise them, and they will go ahead and sign contracts for cycle ways and the golden mile….all of which is borrowed money…before December. Come the vote on the airport sale the Green and Labour councillors who voted for the LTP will have a sudden change of conscience and vote against the sale of the shares.
This will leave a massive hole in the finances of the council and cause mayhem. But I guess by that stage we will be so screwed anyway that it will just be another day at the office for the council.
The spin doctors have been weaving their magic and renaming our wasteful, financially irresponsible councillors as “progressive councillors”. Sounds impressive but with the backward direction our city is heading a more realistic term would be “regressive councillors”.
When people’s rates become unbearable I just hope that people remember those responsible. Those that voted for this LTP!
Nb. Worth noting that Councillors McNulty and Wi Neera would have happily supported the LTP had it not been for the Airport Sale. They had no issues with the exorbitant expenditure levels.
Karl Tiefenbacher
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