After nearly two days of rigorous debate, Auckland councillors have agreed on a budget that includes selling a 7 percent shareholding in Auckland Airport.
This afternoon, councillors and Mayor Wayne Brown voted 14 votes to 6 with one abstention to approve all of the mayor’s first budget, which kicked off last year with savage cuts to community services, the arts and across the council group.
The deal will see the council get a windfall of $865 million, which is intended to help pay down debt.
The Vote
For: Wayne Brown, Desley Simpson, Andy Baker, Chris Darby, Christine Fletcher, Shane Henderson, Richard Hills, Daniel Newman, Greg Sayers, Sharon Stewart, Ken Turner, Wayne Walker*, John Watson*, Maurice Williamson.
Against: Josephine Bartley, Angela Dalton, Alf Filipaina, Lotu Fuli, Mike Lee, Kerrin Leoni.
Abstained: Julie Fairey *voted against airport share sale but for the remainder of the budget.
* Councillors John Watson and Wayne Walker voted against selling the airport shares but agreed with the rest of the budget. Julie Fairey abstained.
Brown said the budget had been passed with more relief than joy.
“We have to pass the budget and it has to balance, but this will have to be paid and more debt will require a harder adjustment,” Brown said.
In a statement, Brown called the deal the “most prudent, balanced budget for Aucklanders”.
“This budget represents a large reduction in the council’s debt, protects core services and keeps rates under control. It is the start of the work to fix the council’s budget and secure our financial sustainability.
“After 29 workshops and over 90 hours of formal discussion, we have reached a decision on the most challenging and contentious Annual Budget in the history of Auckland Council.”
Elected members also voted to keep residential rates at a 7.7 percent increase for the average household.
Councillor Kerrin Leoni said the city has been dragged around and under stress for months and was happy to have gotten to this point.
Councillor Shane Henderson said it had been “tough, incredibly tough”.
The meeting was interrupted late this afternoon by two members of Auckland Action Against Poverty, Brooke Pao Stanley and Agnes Magele.
The pair hectored councillors about selling the airport shares, the need to borrow money to plug the budget hole and inviting councillors to come and see living conditions on the ground.
Brown adjourned the meeting for the women to be removed, but following a request from governance director Phil Wilson for them to leave, they left on their own accord.
Councillor Mike Lee said it was a disappointing day, especially with the loss of councillor Lotu Fuli’s amendment to retain the airport shares.
”This is the first step to a complete sell-out and the sale of Ports of Auckland. Selling income-earning assets is a failed strategy and race to the bottom,” Lee said.
Earlier, councillors voted down two alternative budget plans in a second day of debate over
The amendment by councillor Angela Dalton was lost by 8 votes to 13, the same result as the previous amendment from councillor Fuli.
Dalton proposed to adjust rates to 7.7 percent, reducing cuts to $69.8 million, reducing debt to $120 million and restoring all local board funding.
Fuli’s plan was to retain the council’s airport shares and borrow a further $60 million in debt to plug the loss of income from holding the 18 percent shareholding.
Despite getting the support of most left-leaning councillors, three councillors on the left - Henderson, Hills and Fairey - did not back the plan.
