Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Central Rail Link Could Eventually Lead To A Bankrupt City

NoMoreRates.com

The nationwide campaign to replace the present system of council rates with a fairer system which reflects ability to pay and value for money.


MEDIA RELEASE

23 November 2012

Central Rail Link Could Eventually Lead To A Bankrupt City – Or Bankrupt Ratepayers

[Statement from David Thornton]

Today’s media story of a ‘leaked report’ on the Central Rail Link is yet another attempt to convince Aucklanders that the Central rail Link is inevitable and vitally necessary.

There is no mandate for the expenditure of more than $3 billion on the proposed Central Rail Link in Auckland over the next seven years.

Despite Mayor Brown’s frequent claims that Auckland supports his Rail Link, and his use of an unscientific ‘phone-in’ survey to back his claims, most ratepayers do not support significant rates increases to pay for this project.

And ratepayers are aware that there will be permanent demands for subsidies to bridge the negative difference between fare revenue and cost per passenger.

While many ratepayers may approve of a Rail Link at some time they will not give full support until they are given the true picture of the impact on rates.

Recent public transport usage statistics do not indicate the level of growth in passenger numbers which would be needed to support a business plan strong enough to attract Government into paying for half the cost.

There has been no convincing evidence so far that forecast passenger growth could be achieved.

Who will these passenger be – shoppers, workers, tourists, - where will they be going to and from?

What will be the fares they will pay? What will be the subsidy required from rates for all of these extra passengers

And even if the Government does eventually contribute to 50% of the cost Auckland Council will still have to borrow at least $1.5 billion to meet its share.

We are all well aware that major projects such as this have a tendency to incur huge cost overruns – and, with the Council already planning to borrow up to, and occasionally beyond, its maximum prudent borrowing limits, the financial viability of the Council would only be saved by increased demands on ratepayers.

Ratepayers are aware of the Kaipara Council nightmare, and the latest credit rating downgrade for Dunedin City Council – there is no reason why Auckland will not suffer a similar downgrade with consequent hikes in interest on borrowing.

A recipe for bankruptcy – but Councils don’t go bankrupt, they use their power to set and collect rates to avoid this.


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

'Tea Break Bill' Passes: Gordon Campbell On Bad Labour Laws And Poor Safety

By co-incidence, one of the prime dangers of the government’s new employment relations law has been underlined by the release of the death and injury statistics among workers at New Zealand ports. These are highly profitable enterprises for the port owners.

The Port of Tauranga for instance, is expecting its current full-year profit to be between $78 million and $83 million and other ports are enjoying similar boom times – but they are also highly dangerous places for the people who work on or around the port premises. At the Port of Tauranga, there have been 26 serious accidents since 2011, and two deaths. More>>

 

Parliament Today:

No Charges: Outcome Of Operation Clover Investigation

Police have completed a multi-agency investigation, Operation Clover, into the activities of a group calling themselves “The Roast Busters”. The 12 month enquiry focused on incidents involving allegations of sexual offending against a number of girls in the Waitemata Police district and wider Auckland area... More>>

ALSO:

UNICEF Report: NZ Cautioned On "Stagnating" Child Poverty

An international report by UNICEF has found that child poverty rates in New Zealand have barely changed since 2008, despite similar sized countries significantly reducing child poverty during the recent recession. More>>

ALSO:

Funding Report: Two Pathways For Transport In Auckland

Commissioned by Auckland Council, the group was asked to investigate two possible pathways for raising $300 million per year ($12 billion over 30 years) to pay for the improvements needed to help fix Auckland’s transport system. More>>

ALSO:

Pay Equity: Equal Pay Win In Court Of Appeal

CTU: The Court of Appeal has made a historic decision paving the way for a substantial equal pay claim for aged care workers. More>>

ALSO:

Gordon Campbell: On The TPP Finishing Line, And Amazon’s Woes

If the Trans Pacific Partnership trade deal wasn’t such a serious matter, this would be pretty funny… More>>

ALSO:

TV3 Video: Three Die On Roads Over Labour Weekend

The official holiday period ended at 6am Tuesday, with three deaths on the roads during the Labour Day weekend. More>>

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news