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

 


Council acting to reduce debt by deferring capital projects

News Release
Friday 7 February 2014

Council acting to reduce debt by deferring capital projects

Rotorua District Council has agreed to defer a number of scheduled capital projects as part of immediate action to reduce debt levels.

The deferred projects have a total value of approximately $5.4 million and were all scheduled for completion in the current 2013/14 year. Most of the programmes would have been funded through borrowing, adding to the council’s debt levels.

Projects selected for deferral have been identified as those that will not cut essential infrastructural maintenance and renewals, or essential services.

Rotorua Mayor Steve Chadwick said that deferring the capital projects was the toughest decision the new council had had to make.

“None of us on Council felt particularly comfortable having to take such drastic action. There remains some unease over potential risks from not proceeding with some of the programmes at this time and that risk will need to be assessed in more detail in the coming months.

“We are also very conscious that some of the previously planned projects were commitments made to our community in response to residents’ requests over recent years - so our decisions were not made lightly.

Mrs Chadwick emphasised that the council’s decision was at this stage to only defer a number of capital projects and that none of them had been cancelled outright. She said all deferrals would be reconsidered as part of preparing a draft annual plan for 2014/15 and the next long-term plan, and the community would be consulted.

Deferred projects would need to stack up against other required expenditure in the annual and long-term plans, and against a careful measure of what is affordable said Mrs Chadwick

“This council is facing up to the realities of a debt situation that is worse than was previously understood. We’ve had a very timely message from our chief executive and chief financial officer that we must take urgent action to reduce growing debt levels and stimulate growth.

“It would be irresponsible to continue on with the levels of capital and operating expenditure that are in existing council plans. We need to pull back hard and we need to do it now.

“We’re in a new era of transparency and openness. This council is totally committed to being up-front with our community so together we can embark on a new and sustainable journey towards a more prosperous future for our district.”

[ENDS]

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home.

To the US, drones are a legitimate response to the threat posed by the al Qaeda organisation and its franchisees... To the US, the drones carry the added advantage of not putting US troops at risk on the ground, and minimises the need for putting them in large numbers in bases in the countries concerned, always a politically sensitive point.

The counter-argument, well articulated by security analyst Paul Buchanan on RNZ this morning, is that this particular drone attack can be said to amount to an extra-judicial execution of a New Zealand citizen by one of our military allies, in circumstances where the person concerned posed no threat to New Zealand’s domestic security. More>>

 

Parliament Today:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>

ALSO:

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>

ALSO:

Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>

ALSO:

Select Committees: Tobacco Plain Packaging Hearings

The Stroke Foundation is today backing the Cancer Society and Smokefree Coalition who are making oral submissions to the Health Select Committee in support of proposed legislation to remove of all branding from tobacco products. More>>

ALSO:

Milk: Oravida Asked For Cabinet Help

New evidence released by New Zealand First today reveals Justice Minister Judith Collins used her position to manipulate the Government to help her husband’s company, Oravida, after the Fonterra botulism scare, says New Zealand First Leader Rt Hon Winston Peters. More>>

ALSO:

With Conditions: Ruataniwha Consents Approved In Draft Decision

The Tukituki Catchment Proposal Board of Inquiry has granted 17 resource consents relating to the $265 million Ruataniwha Water Storage Scheme in a draft decision that would open more of the Hawke’s Bay to irrigation. More>>

ALSO:

Fast Lanes, Campervans: Labour 'Making The Holidays Easier For Kiwi Drivers'

The next Labour Government will make the holidays easier and journeys quicker for Kiwi families driving on the roads, says Labour Leader David Cunliffe. More>>

ALSO:

Gordon Campbell: On Royalty And Its Tourism Spin-Offs

Ultimately the Queen’s longevity has been one of her most significant accomplishments. A transition to Prince Charles while the monarchy was in the pits of public esteem in the mid to late 1990s would have been disastrous for the Royal Firm. Far more congenial representatives have now emerged... More>>

ALSO:

Privacy (Again): ACC Demands Excessive Privacy Waivers

Labour: “This is just another example of ACC under National deliberately acting to deny treatment and compensation... Those who did fill in the form have effectively been victims of yet another ACC privacy breach. This time Judith Collins knew it was happening..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news