Media release

Auckland Councillor Cameron Brewer

Sunday, 1 December 2013

Mayor set to borrow $7.3m to extend failed trams

Despite all his recent promises to ratepayers to lower debt and deliver greater financial prudence, Auckland Mayor Len Brown now wants to borrow $7.3m to fund some waterfront tram extensions showing he’s not serious at all, says Auckland Councillor for Orakei Cameron Brewer.

The controversial tram service is currently suspended due to construction works on Daldy and Halsey streets in Wynyard Quarter. However prior to their suspension, Mr Brewer says the patronage of the trams had fallen to 20% of what was forecast, leading to a huge operational loss and the need for an even greater subsidy.

“So the trams are nice but remain a financial disaster for ratepayers. Nonetheless the Mayor seems determined to throw good money after bad, with a promise to give Waterfront Auckland $7,369,000 for tram extensions in Auckland Council’s draft 2014/15 Annual Plan which is due to get signed off by councillors before Christmas for public consultation. If people think this is crazy, they need to make a submission early next year.”

Mr Brewer says tram extensions have been mooted for previous budgets, but were wisely deferred.

“Given the Mayor’s recent tough talk on budgetary matters, I am surprised to see this extravagant project re-appear among a long list of capital expenditure projects for 2014/15. He certainly knew not to highlight this questionable expenditure in his Mayoral Proposal last month, but when you dig a bit deeper the $7.3m is there for all to see.”

“Like the living wage promise, pumping millions more into the trams is just another example that this Mayor is not serious about prioritising expenditure and responding to ratepayers’ genuine concerns about the financial sustainability of the council’s current direction.

“Mr Brown needs to start saying no, otherwise nothing’s going to change for Auckland’s poor old ratepayers,” says Cameron Brewer.

Ends

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