Wellington City Council told to Constrain Expenditure

Wellington City Council needs to constrain its spending and limit its rate increases according to the Wellington Regional Chamber of Commerce. The comments were made in an oral hearing where the Chamber presented its submission on the council’s 2010/11 Draft Annual Plan.

“The Draft Annual Plan provides for an increase of 2.88%. However, it is still above the inflation rate and we think there is room for it to be brought back further through reductions in council spending,” said Chamber CEO Charles Finny.

“We encourage a line-by-line review of council expenditure as part of the Annual Plan process and hope that significant reductions can be found by the time the draft plan is finalised.

“We think the council should reduce its scope of activities and look for savings that can be made through increased efficiencies.

“The council’s focus on climate change is one area which we see as well outside council’s core business.

“While we accept that the council needs to prepare the city for the potential impacts of climate change we do not accept it has a role in encouraging its citizens to reduce emissions and we question the focus the council is putting in this area.

“We also have concerns about the burden of rates falling unfairly on business. It is essential that WCC does not overcharge Wellington businesses if it wants to attract and retain businesses in the city.

“We are pleased that the council recognises the negative impact the business differential has on the business sector and thus the city, and is sticking to its commitment to phase it down.

“However we would not be happy if this were offset by continued increases in business specific rates such as the commercial sector targeted rate and the downtown levy,” Mr Finny concluded.

ENDS

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