Wellington Chamber of Commerce

Friday 6th November 2015

Chamber to file judicial review against Council contractor decision

Wellington Chamber of Commerce has advised Wellington City Council it will initiate legal proceedings to challenge the recent contractor decision made by Councillors.

The Chamber has confirmed it intends to file an application to the High Court for judicial review in relation to the lawfulness of a decision taken by the Wellington City Council on 28 October 2015. The decision relates to the requirement by the Council for the preferred supplier of the recent security services tender to pay its employees an increased remuneration rate (a Wellington City Council ‘Living Wage’) despite Council officials advising this would provide little by way of tangible benefit to the Council.

Councillors voted 9-6 to require a private contractor to pay its employees a higher rate than what the contractor pays when doing the same work for other councils, costing Wellington City ratepayers 19% more in the total contract price.

The Chamber intends to file an application over the coming week.

Chief Executive John Milford said the Chamber’s board took the action reluctantly but felt, given Council’s own officers advised against the decision, that Councillors must be held to account.

“It’s the Chamber’s contention that this decision has been made contrary to the requirements of the Local Government Act.

“This is not about the living wage, its merits or otherwise, but ensuring the lawfulness of Wellington City Council’s decision.”

“Councillors received strong advice from Council officials and the Council’s own lawyers that there is a serious risk that they would be acting beyond their powers if they voted in favour of this requirement – a majority still did.”

“We are taking these proceedings because we believe this decision is not prudent stewardship or efficient and effective use of ratepayer resources, 47% of which is contributed by Wellington businesses. Nor is it a function that is cost-effective for households and businesses. These are Councillors’ clear obligations under the Local Government Act.”

“The Chamber is asking the High Court to decide whether the Council has acted outside its legal mandate under the Local Government Act.”

“The Act is there to ensure good governance and to protect ratepayers' interests, and the Chamber will be asking the High Court to decide if that is happening in this case.

“This is not an action we take any great delight in, but the Local Government Act is there to protect ratepayers’ interests, and as responsible stakeholders in Wellington’s future we must hold Council to account.”

As the matter will soon be before the High Court, and given legal advice, the Chamber does not intend to make any further statements at this time.

ENDS

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