Media release    12 May 2009

Statement from David Thornton

Auckland reorganisation must focus on achieving cost reduction and a halt to the huge council rates increases of the past few years.

Establishment Board must consider implications for rates.

Ratepayers throughout Auckland are keeping a watchful eye on one of the proposed advantages of a single supercity council – just one rates bill.

That rates bill will require all rates to be paid to the new Auckland Council – which will ultimately make decisions on how those rates will be spent.

Ratepayers are concerned that ‘Making Auckland Greater’ will lead to greater rates increases.

Ratepayers have two major concerns – how their rates will be spent, and how much they will have to pay for the reorganisation of local government throughout the region.

Some savings must be achieved from the slashing of the number of elected representatives by about 30%, mostly city and district councillors, many of who are currently paid $50,000-$80,000 a year – add to that the cost savings with the removal of six mayors and their entourages.

But there has been no estimate of reductions – either by redundancy or ‘sinking lid’ policies - in the 6,000 plus council staff currently employed across the region, many of whom are in management positions and are in the $75,000 plus salary bracket.

Most savings should come from rationalisation of services provided on a regional basis.

If there is no pressure to achieve these savings, then overall costs will rise – and the ratepayers will be hit again.

The Independent Rates Inquiry wanted rates to be no more than 50% of a council’s total income- and currently Auckland’s council are collecting between 56% and 64% of their costs from rates.

Costs and funding must be in the forefront of the new Establishment Board’s criteria as they set about creating SuperCity.

Ends.

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