5 Jun 2011

Council to consult on investing in new funding agency

9:08 am on 5 June 2011

Ratepayers will be consulted by Wellington City Council as to whether it should become a shareholder in a new local government funding agency.

Parliament is considering a bill to establish the agency, which would operate as large scale borrower that re-lends to councils.

Finance Minister Bill English has said the agency's ability to amalgamate the borrowing needs of many councils means interest rates would be lower.

Wellington Mayor Celia Wade-Brown says the council would make annual savings of up to $740,000 by 2019, by borrowing from the agency.

Consultation on whether the council invests $2.3 million to become a shareholder in the agency, begins on Tuesday.