But after a substantial increase in 2022, prices had fallen away.
“As at September 3, 2025, the carbon credit unit price is $56.66 per unit, equating to a portfolio value of $1.976m.”
Council officers recommended paying down debt with the proceeds.
Councillor Josh Chandulal-Mackay proposed an alternative motion to let the next council decide what to do with the money.
That would enable it to make “a good and proper” decision about a perpetual investment fund (PIF), he said.
“If we do decide to wait until the next term, it will sit in a term deposit of some sort and will accumulate interest.
“Please consider the long-term benefits of a PIF if we begin now. This could be the start of something really good for our community.”
He said nothing was preventing the next council from using the money on debt.
His motion was lost by 7 votes to 5.
Chandulal-Mackay and councillors Rob Vinsen, Ross Fallen, Charlotte Melser and Charlie Anderson were in favour.
Mayor Andrew Tripe and councillors Kate Joblin, Michael Law, Jenny Duncan, Glenda Brown, Peter Oskam and Philippa Baker-Hogan were against.
Deputy Mayor Helen Craig was absent.
Council chief financial officer Mike Fermor said credits were “a passive investment”, with no benefit to ratepayers until they were sold.
“While officers are in favour of considering a PIF, our view is that it will take time to think about the boundaries of a PIF before we establish one.
“Are we going to establish a targeted rate? Are we going to borrow money to put into the PIF? Are we going to sell assets?”.
New Plymouth District Council created a PIF in 2004 with about $260m from the sale of its Powerco shares.
A New Plymouth council statement on September 3 said the PIF’s balance in July was $409m and for the 2024/25 financial year it paid out about $12 million to help offset rates.
Whanganui council chief executive David Langford said the timing of the decision, close to the local election, was “not of any particular consequence”.
“When I joined the council in 2022, the carbon credits were worth about $2m. Today, they are worth about $2m.
“You asked for this report to be brought back. We think it’s an entirely sensible option.
“The money can easily be reborrowed if the new council has a need or desire to.”
Chandulal-Mackay said reborrowing money for a PIF was “an entirely different proposition” to selling an asset and applying it to a capital fund that would generate a long-term return to the ratepayer.
He is challenging Tripe for the mayoralty this year, with both advocating for a PIF in their policies.
Tripe said the council would save more by paying down debt than putting the money in a term deposit.
“The PIF is still there, but let’s get [the credits] sold, reduce our debt and get the benefits of interest.”
The report said selling the credits to pay down debt would reduce interest costs by about $90,000 a year.
Councillors voted 8-4 to pay down debt, with Vinsen joining Tripe and Joblin, Law, Duncan, Brown, Oskam and Baker-Hogan in favour.
Tripe, who previously suggested using the sale of carbon credits to start a PIF, told the Chronicle the council could withdraw funding from its debt service facility at any stage.
But the council would not take out more than the value of the carbon credits, he said.
“That’s another debate, as to the quantum of how much we put in there.
“You can’t overcapitalise on a PIF at the cost of the current generation, it has to be balanced.
“The return on the PIF also has to be greater than the cost of debt.”
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily the Whanganui District Council.
