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

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences.

Such is the power of the economic orthodoxy that when opposition parties arise – say, in the shape of the Greens – their “credibility” is measured by the extent to which they give the appearance of learning and abiding by the ruling consensus.

The tension between the desire for change – and the inability of the current political framework to deliver it – creates openings for populists of all stripes. It is what has made the emergence of Internet Mana so interesting. More>>

 

Parliament Today:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Minister Told Of FBI Investigation, Says INZ: Coleman Must Quit Or Be Sacked Over Dotcom Case - Harré

Immigration New Zealand has done the right thing in distancing itself from Jonathan Coleman’s claims that ministers were not aware of FBI involvement in Kim Dotcom’s residency application, says the Internet Party. More>>

ALSO:

Valedictory Season: Maori Party Founders Say Goodbye

Two major Maori MPs gave there farewell speeches to Parliament Thursday outlining their history, experiences, triumphs and regrets. More>>

ALSO:

Resignation Not Accepted: Transport Minister Breaches Aviation Security Rules

"Running late for a plane at Christchurch Airport, I without thought breached airport and airline security rules by entering the gate lounge through a door usually used for exit only..." More>>

ALSO:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news