Fale Malae Trust blindsided by proposed $5m funding cut

The trust pushing to build a national Fale Malae on Wellington's waterfront said city councillors did not reach out to discuss potentially cutting the $5 million council funding for the project.

Chairperson Adrian Orr, a former governor of the Reserve Bank, said the Fale Malae Trust members were blindsided by news of the potential cut.

It was another hurdle in the years-long effort to build an institution that would reflect New Zealand's identity as a Pacific nation and project Wellington as a capital of regional importance, he said. However, the trust was not giving up on its plan.

Led by deputy mayor Ben McNulty, the council's revenue and financial value working group released a proposed list last week of spending cuts for its next long-term plan, with a looming 4% cap for rates increases in 2029.

He told Local Democracy Reporting the working group reports to the council and it would have been inappropriate to circumvent the process.

In the firing line were $21.4m for the Fale Malae and a Chinese garden at Frank Kitts Park, plans to build a new $70m central city swimming pool to replace Freyberg and Thorndon pools and a new roof for the Ākau Tangi Sports Centre.

It also concluded the council would not have the $300m needed to earthquake-strengthen five major buildings – the Michael Fowler Centre, Opera House, Bond Store, Embassy Theatre and Te Whaea, which hosts Toi Whakaari: NZ Drama School, the New Zealand School of Dance and the Tāwhiri Warehouse arts venue.

The council agreed last year to contribute a maximum of $5m towards knocking down the Frank Kitts car park and an adjoining bridge, on top of $3m for resource consent and enabling works.

The Fale Malae Trust had already lost $7.29m of financial backing from the 2025 Budget.

It said on Tuesday that financial commitment flip-flopping by local and central government highlighted the challenge of fundraising and long-term investing in New Zealand, and was the primary cause of infrastructure underinvestment and community degradation.

Orr said the trust would continue to engage with the long-term plan public consultation in good faith and was looking forward to it being reciprocated.

"The Fale Malae has always been about creating a place that reflects who we are as a proud Pacific nation – a home for Pacific culture, learning, connection, and celebration. Knowing that we can now move from aspiration to delivery is deeply meaningful."

McNulty said the council was going to be under major financial constraints and it had to look at every single dollar of capital spending for the next decade.

"I can appreciate it's not welcome news but it is what the council needs to do to prepare Wellingtonians for this budget."