Council's Long Term Plan

Sunday, 12 February 2012, 3:39 pm
Press Release: Dick Quax

Welcome to my first newsletter of 2012. This will be another busy year for the Auckland Council. During 2011, Council worked its way through the Auckland Plan, which will be adopted in March. The Auckland Plan informs the Long Term Plan, which will be adopted in June, and outline the Council activities and priorities for the next ten years.

I have some real concerns about planned priorities, the cost of those, how they will be paid for and the level of debt that the Council will take on over the decade of the Plan.

The Plan proposes a rate increase 3.6 per cent for 2012/2013 but 4.9 per cent a year over the subsequent years. This is excessive and will see rates rise well above the rate of inflation, which is expected to be 2.6 per cent. In addition, that rate of borrowing is set to rise from the present level of $3 billion to over $8 billion during the course of the Plan. By 2021, 21 cents of every rates dollar collected will be used to service the debt.

On the subject of rates and debt the Minister of Local Government, Nick Smith pointed out that Local Government have increased rates a 6.8 per cent of the last ten years compared with the average inflation rate of just 3 percent. The Minister also pointed to the fact that while debt in most sectors was declining debt in the Local Government sector is continuing to rise.

Funding for the Mayor’s favourite project, the Inner City Rail Loop is proving problematic. The Plan assumes that central government will contribute 50 per cent of the total cost ($2.4 billion). The Government is facing the cost of a $30 billion rebuild of Christchurch and has stated that the Council will not receive government funding for the ICL, which it does not see as a transport priority. The mayor has a list of proposals to raise money for the ICL. These include, an Auckland fuel tax, an Auckland motor vehicle registration tax, a bed tax, a betterment tax, a congestion tax, an airport departure tax, road tolling, development charges and of course rates.

I campaigned on a platform of affordability and so I have opposed much of what has gone into the Draft Long Term Plan, the ongoing rate increases, the increasing level of debt, the funding of the ICL if no funds are available from central government. However, many of you will have your own ideas and I urge you to make a submission. Submission form can be downloaded from the Council’s website www.aucklandcouncil.govt.nz/longtermplan

ends

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