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

 


Council acting to reduce debt by deferring capital projects

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

 

17 Year Sentences In Baby Moko Case: Attorney General On Plea Bargain

“The Crown’s decisions in this case, including the decision to accept the manslaughter pleas, were motivated by the need to secure convictions for this horrendous killing and to avoid the significant risk that either of the defendants could escape such a conviction because of evidential issues.” More>>

ALSO:

No Rail For New Harbour Crossing: National Giving Up On Rail In Auckland

The National Government’s decision to scrap two planned rail lines in Auckland shows it is giving up on a city-wide rail network in Auckland, and on thousands of commuters who sit in traffic jams every single day, the Green Party said today. More>>

ALSO:

Gordon Campbell: On The Ombudsman’s Verdict On Paula Rebstock And Ian Rennie

Unfortunately, the brave and damning report by Ombudsman Ron Paterson on the “flawed” and “unfair” inquiry conducted by Dame Paula Rebstock into events at MFAT pulls back the veil on a far wider issue. More>>

ALSO:

Charities' Report: Stressed Families - Overstretched Services

“Like so many of the whānau and families they serve social service organisations are under huge financial stress. The support demanded from desperate people in communities is far outreaching the resources available.” More>>

ALSO:

Detention: Wellingtonians Protest Treatment Of Refugees

Peace Action Wellington (PAW) and around 50 Wellingtonians blockaded the Australian High Commission, creating a symbolic detention centre to protest the Australian Government's policy of mandatory offshore detention for refugees and asylum seekers. More>>

ALSO:

Diver's Alarums: Breach Means Training Provider Must Repay $1.47 Million

The New Zealand School of Outdoor Studies is to repay $1.47 million (GST-exclusive) to the Tertiary Education Commission (TEC) following an investigation which showed that some student enrolments between 2009 -2014 could not be validated and that courses were under-delivered against their agreement with the TEC. More>>

ALSO:

Education: Government Plans Suggest Bulk Funding Return

Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. More>>

ALSO:

Interim Report: Auckland Looks Long Term To Pay-Per-Km Road Pricing

Aucklanders can expect to be paying variable rates per kilometre to travel on the city's most congested roads under an emerging transport strategy being formulated by the government and the Auckland Council. More>>

ALSO:

Despite Promises: Government Extends Iraq Deployment

Cabinet has agreed to extend New Zealand’s contribution to the joint New Zealand-Australia mission to train Iraqi Security Forces until November 2018. More>>

ALSO:

On The 'Terrorism' Card:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news