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

Gordon Campbell: On The Aftermath Of The Greenwald/Snowden Revelations

The credibility issues have come down to two main ones:

1 The email This has to do with whether Key knowingly agreed to use our immigration rules as a tool to ensnare and ultimately extradite Kim Dotcom, and do so largely at the behest of Hollywood’s leading corporates and their best friend in the White House, vice-President Joseph Biden. Some of the debate in the last few days has turned on the reliability of a Warners email that seems to set out this plan in black and white. IMO, the email is just the icing on the cake...

2. Mass surveillance Earlier to day I was going to try to explain the difference between what Edward Snowden/Glenn Greenwald were talking about (ie mass surveillance via the the cable-accessing SPEARGUN programme and the Xkeyscore analytical programme) and what Key has chosen to talk about instead in order to deliberately distract and confuse the public. Then I found that Keith Ng had not only beaten me to it, but had done so with beautiful lucidity. More>>

Out-Link - "Project SPEARGUN underway" • OnPoint • Public Address

 
 

Parliament Today:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Not-Especially New Plans: All Prisons To Become Working Prisons Under National

All public prisons in New Zealand will become full working prisons by 2017, and ex-prisoners will receive post-release drug addiction treatment if National is returned to government, says Corrections Spokesperson Anne Tolley. More>>

ALSO:

Māngere: "False Claim Of Matai Title" - Labour

National must explain why its candidate for Māngere Misa Fia Turner appears to be using a Matai title she is not entitled to, Labour’s MP for Māngere and Pacific Islands Affairs spokesperson Su’a William Sio says. A Matai title is a legally-recognised ... More>>

ALSO:

CPAG Report: No New Zealand Child Should Grow Up In Poverty

Child Poverty Action Group's flagship policy publication Our Children, Our Choice: Priorities for Policy calls for cross party political agreement to underpin an action plan to eliminate child poverty in New Zealand. More>>

ALSO:

Gordon Campbell:
On National’s Phantom Tax Cut Package

Hmmm. So National’s tax cuts package turns out to be one of those television advertisements that screams a headline promise – perfect skin! a youth tonic that works! – while in very small print there’s an out clause: special conditions may apply. More>>

ALSO:

Water: New Marine Reserves On West Coast Opened

Five new marine reserves were officially opened by Conservation Minister Dr Nick Smith on the West Coast of the South Island to protect a range of marine ecosystems for conservation, science and recreation. More>>

ALSO:

Perception: Study Looks At Trustworthiness And Support Of Politicians

A University of Canterbury marketing study has looked at what impact the Thatcher Effect has on perceptions of trustworthiness and liking of New Zealand politicians leading up to the 2014 general election. More>>

ALSO:

History Lessons: Jamie Whyte At ACT Campaign Opening

It is nearly 20 years since the ACT party was born. Many people no longer remember why it was named ACT. They may imagine that it was on account of our determination to actually do things in parliament rather than simply occupy the seats and collect the salaries. That’s true but it isn’t the right answer... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news