A fund to protect Auckland’s financial resilience now has the legal protections in place to protect it for future generations.
The Auckland Council (Auckland Future Fund) Local Bill, protecting Auckland’s long-term wealth fund, has passed its third reading in parliament.
The Auckland Future Fund is a long-term wealth investment for Aucklanders, and this government bill adds the strongest protection possible, to ensure that distributions from the capital base are only ever used for what the fund was intended for, improving Auckland's financial resilience.
Auckland Mayor Wayne Brown says it’s another action that shows the government is listening.
“I commend National’s MP for Mt Roskill, Dr Carlos Cheung for getting it through. He’s done a good job. The legislation requires, among other things, a super-majority around the council table to withdraw capital, ensuring it’s not a piggy bank to just dip into at random. This is a sensible idea, and an example of Wellington doing what Aucklanders want.
Mayor Brown says the fund is about building resilience into Auckland Council’s financial future.
“We must strengthen Auckland’s financial resilience, and this is one of those pieces. The fund is already contributing way more than the airport shares it came from, and that will benefit Aucklanders into the future.”
Chair of the council's Value for Money Committee and Deputy Mayor, Desley Simpson, also welcomed the passing of the Auckland Future Fund legislation.
Deputy Mayor Desley Simpson.
“One of the mayor’s key initiatives we delivered on last term was to set up an Auckland Future Fund to deliver a higher return from our investments. With the Government passing the AFF third reading yesterday we are another step closer to delivering a stronger long term investment income source for years to come, with long-term legislative protection.”
"Council remains committed to look for new revenue tools to reduce the burden of rates. Currently council’s income from rates is only 35% and the Future Fund is a key tool in keeping that rates percentage as low as possible.
