14 September 2010

Media Statement

Banks – Keeping Rates Under Control is Critical

Auckland Mayor John Banks says he will be taking a disciplined and controlled approach to spending at the new Auckland Council to ensure rates are kept under control.

“I am the only candidate who can credibly deliver a rating policy which doesn’t burden Aucklanders with unsustainable increases.

“We must order our priorities and ensure that all spending decisions are made with the ratepayers in mind - there is no spare cash around at the moment.”

Mayor Banks has released his Rates and Budgets policy with a goal of holding overall rates increases to council inflation.

“I am proud of my track record on rates and my number one goal for the new Auckland Council is to continue delivering rates at or below the rate of the council’s inflation.”

As a part of his rates policy, Mayor Banks will: - prioritise spending - open the books - ensure fees are not subsidised by ratepayers - not run huge operating deficits - control costs and deliver better value for money - offer infrastructure bonds to the public - deliver ongoing savings and efficiencies from the merger of the current councils

Mayor Banks says he is the only candidate with a history of holding rates at or under council inflation for 2007-2010, and to within CPI during 2001-2004.

“I am the only candidate running for the Auckland Mayoralty who has delivered on this.

“Len Brown promised to do this when he ran for the Manukau mayoralty in 2007 and has failed to deliver every year since.

“Auckland City has the largest operating budget of any local authority in New Zealand – just over twice the size of Manukau City.

“My experience in business, government and local government has taught me that the successful delivery of low rates can only be achieved by a disciplined line-by-line approach to budgeting.

Banks says he will ensure the new Council lives within its means and does not run the levels of operating deficits that Manukau did last year of $46 million.

“This is just borrowing from our children to pay for our day-to-day costs.

“The Royal Commission on Auckland Governance identified major savings and economies of scale that could be achieved by the new Auckland Council.

“These will only be achieved and the benefits passed through to ratepayers if a disciplined approach is taken to operating expenditure.

“Bringing Auckland’s rating systems together is an incredibly complex job, which shouldn’t be left in the hands of someone with a poor track record on financial discipline.”

*ENDS*

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