Another war of words has erupted between Wellington City Council and the Beehive, with Mayor Tory Whanau hitting back at claims the city’s leadership bears some blame for the capital’s economic predicament.
Reacting to new economic figures showing those in Wellington are spending less, more businesses are going bust and more people are on the Jobseeker benefit, the Economic Growth Minister argued local government needed to shoulder some responsibility.
Willis said the city has been going through a difficult time “both in terms of its local leadership and a sense that it hasn’t had a focus of where growth is going to come from”.
Reacting to the minister’s comments, Whanau said Willis is “desperate to deflect responsibility for the economy from anyone but herself”.
“Last week, she targeted 'merchants of misery and doomsayers' and this week, she’s blaming the council," Whanau said.
“She’s the Minister of Finance and the Minister for Economic Growth but we’re yet to see concrete ideas from her Government to lift the country out of the doldrums. We’re waiting for your plan, minister.”
The city’s economic struggles saw 177 businesses closing down in the year to the end of the June quarter, Infometrics said in its latest Quarterly Economic Monitor.
Infometrics principal economist Nick Brunsdon said the struggles in the capital “in large part stems from the cuts in the public sector”.
Willis accepted that in part, saying the Government’s savings targets “no doubt” had an impact, but the city needed a better and more pro-business city council “to get that buzz back in Wellington”.
The Wellington Regional Leadership Committee (WRLC), made up of local government leaders and iwi representatives, said “multiple contributing factors” are to blame for Wellington’s grim economic results, and it stood by the work it is doing to improve the city.
“Consistent, clear direction is important for long-term resilience and growth and the WRLC is confident in the potential of the Wellington region and our long-term direction,” committee chair Darrin Apanui said.
He said the public sector cuts, the cost of living and a lack of infrastructure projects are responsible.
“Our focus is on building the right foundations for private sector investment and to make the region attractive. This includes land availability, housing supply and core infrastructure. The regional pipeline of investment is significant and will support a more diverse and resilient economy,” Apanui said.
The committee notably also has three seats available for ministers of the Crown, but these have sat empty since October 2023, with the current Government not appointing anyone to join the group.
WellingtonNZ, the city’s agency tasked with promoting economic development, is also defending its record, with CEO Mark Oldershaw pointing to the $200 million of benefits from its activities and interventions in the 2024/25 year.
Oldershaw said while Wellington continues to grapple with the impacts of the Government’s cuts, the city is “so much more than the public sector”.
He echoed Willis’ sentiment that Wellington’s creative, digital technology, screen, tourism and events industries are the city’s way out of its economic hole.
“Wellington’s future is looking bright,” Oldershaw said. “We have a number of major civic developments opening in 2026, including Te Matapihi ki te Ao Nui Central Library and Te Ngākau Civic Precinct in March, followed by Te Whare Whakarauika Wellington Town Hall in early 2027.”
Ethan Manera is a New Zealand Herald journalist based in Wellington. He joined NZME in 2023 as a broadcast journalist with Newstalk ZB and is interested in local issues, politics, and property in the capital. He can be emailed at ethan.manera@nzme.co.nz.