Press Release
Michael Williams, Manukau City Council
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Manukau City Council Spending Out Of Control

Manukau City Councillor Michael Williams has expressed frustration at the council’s unwillingness to cut costs and says that the council’s development program is unsustainable.

Mr Williams, Councillor for Botany-Clevedon Ward, says that Manukau City Council’s operational and interest costs rise to a large extent due to capital expenditure on Roads, Parks and Community Facilities.

“Capital expenditure has increased at an average of 14% a year for the past 10 years,” says Mr Williams, “which is completely unsustainable. In 1999 the council’s capital expenditure was $55 million and in 2009 it is projected to rise to over $200 million.”

Mr Williams says he expects the council to try to hide massive cost increases by borrowing up to half a billion dollars to keep rates increases below 10%.

“It just doesn’t seem to have got through to councillors that the days of profligate spending are over. People are hurting out there and debt money is being rationed by banks. It just doesn’t make sense for local government to soak up liquidity that is desperately needed by business to fund growth, particularly when most council projects (other than roading infrastructure) have limited economic benefit.”

“Our children are being born with a millstone of debt around their necks. They will either have to scrimp and save to pay high rates to fund interest on the debt or leave the country to escape it.”

225 Projects totalling $1.8 billion are being considered during the 10 year plan process including:

• Manukau Railway Station $25 million
• Flat Bush Water Quality Ponds $64 million
• Council Office Refurbishment $18 million
• IT projects $60 million
• Pensioner Housing $18 million
• Manurewa Sports Facilities $6 million
• Otara Pool Renewal $10 million
• Mangere Arts Centre $10 million
• Flat Bush Library $20 million
• Business District and Town Centre revitalisation $50 million
• And many more

Mr Williams says he is tired of sitting through endless meetings debating cost cutting proposals only to see them lost.. He says that cost cutting proposals have typically been lost by 10 votes to 6. He says that even when council officers have agreed that savings and deferrals are possible, councillors have refused to support them.

“We have to cut costs until we feel the pain, because that is what businesses and private citizens around the world are having to do.” Says Councillor Williams. “and we ought to invest the limited funds available in roading projects that increase economic growth and improve business productivity.

ENDS

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