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Council Risking Ratepayer Money on Office Development

Wellington City Council Risking Ratepayer Money on Office Development

21 APRIL 2015
FOR IMMEDIATE RELEASE

The Taxpayers’ Union is cautioning the Wellington City Council’s proposed‘economic development’ venture which may see ratepayer money used to compete against existing Wellington property owners. Taxpayers’ Union Executive Director, Jordan Williams, says:

“The Council is championing a ‘tech hub’, accommodating 160 desks in the first stage, to subsidise shared office space. While we all appreciate that Wellington needs to attract entrepreneurs, it’s not clear what market failure the Council is trying to solve. There is already plenty of empty office space in Wellington, with market rents much cheaper than the other major centres. Why should ratepayers subsidise the rent of the selected few on the basis that an industry is fashionable?"

“Ratepayers will be looking very carefully at the business case being presented to Council today. Wellington cannot afford another Harbour Quays-style development which was underwritten by Wellington Regional ratepayers, sucked people out of the CBD, and has failed to cover its cost of capital."

ENDS


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