The government is set to appoint a Crown Observer to Wellington City Council, Local Government Minister Simeon Brown announced today.
This move follows months of internal conflict over the council’s long-term financial plan, including a controversial decision to reverse the proposed sale of the council’s stake in Wellington Airport.
Brown cited official advice from the Department of Internal Affairs (DIA), which identified significant issues with the council’s financial management, particularly its approach to funding critical infrastructure like water and handling insurance risks.
The appointment of a Crown Observer aims to guide the council through the financial challenges, though the observer will not have direct decision-making power.
Mayor Tory Whanau has committed to “working constructively” with the appointed observer to move beyond internal disputes and build a more sustainable financial plan for Wellington.
The DIA raised concerns that the council’s reliance on ratepayer funds instead of debt financing for water infrastructure could overcharge residents by over $700 million in the coming decade.
Recent council meetings have been marked by dysfunction, including councillors walking out and public disputes.
