The point about revitalising city centre hospitality is a complete red herring.

6500 public servants were sacked earlier this year. Most of them were in Wellington, a city of 200k souls. Even you add in the Hutt Valley and Kapiti Coast, that's maybe 400k people. So a working population of maybe 200k. Not all the sacked public servants were in Wellington, but that still means around 3% of those who were working are now not. That automatically translates to a 3% cut in spending.

Given that many more public servants are now concerned about joining the dole queue and have cut discretionary spending to the bone, you can see that a 10% fall in spending is a direct consequence of the government's job cuts. That won't be spread evenly, so we can expect to see fewer shops, cafes and bars in town - and that means even more unemployment which in turn means less spending.

That's what's killing the Wellington hospitality trade.