Len Brown urged to release council assets ahead of finance meeting

Today’s meeting of Auckland Council’s finance and performance committee promises to be a lively and contentious one.

As well as receiving a performance report and financial results for the first quarter, and a discussion about the restoration of the St James Theatre from which the public will be excluded on the grounds of commercial sensitivity, there will be feedback on reports from EY and Cameron Partners on the council’s options for alternative sources of finance.

Last week’s release of the reports – which include recommendations for a full or partial sell-down of the council’s Auckland International Airport shares, Ports of Auckland and its diversified financial asset portfolio – has already caused some conflict.

Councillor Cameron Brewer has taken it upon himself to chide assumed mayoral aspirant Phil Goff for what he characterises as a dismissive attitude to the recommendations, while the Auckland Energy Consumer Trust has rejected out of hand the suggestion that it might voluntarily sell down part of its shareholding in Vector and donate the proceeds to the council to pay for “wider Auckland goals.”

Now mayoral candidate Mark Thomas has entered the pre-meeting fray, calling for incumbent mayor Len Brown – who has successfully campaigned twice on an anti-asset sale platform – to propose an amendment “to address the financial pressure Auckland ratepayers are under.”

“The mayor should use his executive authority to prioritise the key funding options identified by the reports and propose an amendment to council’s draft annual budget for next year,” he says. “The governing body meets on December 17 to agree annual plan consultation topics and the obvious options to improve the way Auckland is funded should be part of that.”

Noting that a Statistics NZ survey completed in March indicted that, even before the average 9.9% rates increase kicking in, “42% of Aucklanders did not have enough to meet every day needs or only just had enough,” Mr Thomas says he agrees with the EY report’s conclusion that releasing the council’s $345 million financial assets portfolio is a top priority – “and so should Mr Brown.”

Mr Thomas also concurs with EY’s view that the council’s $1.3 billion of Auckland Airport shares should be reviewed and ratepayers consulted on the matter.

The meeting begins at 9.30 this morning and can be watched live here.

NBR will provide coverage of the meeting later today and tomorrow.

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