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

Gordon Campbell:
On The Greens Proposal To Gradually Lift The Minimum Wage

Heading into the election home stretch, voters have a clear choice about the best way to help low and middle income New Zealanders. They can do so by gradually lifting the minimum wage (as the Greens propose) or by a small tax cut, as the government seems about to announce.

The minimum wage boost – by 75 cents an hour to $15 in December, and then by gradual annual increments to $18 an hour by 2017 – that the Greens are talking about is just one part of a packet of employment measures that would include scrapping youth rates and the 90 day trial period, introducing a redundancy package of four weeks, offsetting any abatement effect of the policy package for those receiving Working For Families, and finally… ditching the exception made by the government (during the Hobbit negotiations) for workers in the screen industry, which denies them normal workplace safeguards and entitlements. More>>

 

Parliament Today:

2014 General Election: Voting Period Begins

The first votes for the 2014 general election will be cast today, Wednesday 3 September, as advance voting begins ahead of election day on Saturday 20 September. More>>

ALSO:

Two Dead, One Injured: Suspect Charged After Ashburton Shooting

Russell John Tully has appeared in Christchurch District Court. Tully has been remanded in custody on charges of murder of Peg Noble and Leigh Cleveland and attempted murder of Lindy Curtis. More>>

ALSO:

John Key Press Conference: Ashburton Shootings, Judith Collins Inquiry

Prime Minister John Key has delayed the release of Nationals’ fiscal policy in light of this morning’s shooting at a Work and Income office in Ashburton... Key also answered questions about Judith Collins, and confirmed that independent inquiry will be held with regard to allegations made against Collins. More>>

ALSO:

Internet MANA: Georgina Beyer Rocks The Waka

“There is now, and always will be, a range of views about many issues within our movement and members are free to express them, but Georgina’s views on Kim Dotcom are not shared by the MANA Movement leadership or the vast majority of MANA members and supporters around the country” states MANA Candidate for Waiariki, Annette Sykes. More>>

ALSO:

IGIS Update: Inquiry Into Release Of NZSIS Information

The Inquiry would be conducted in private and individuals would appear before her separately over a period of more than a week. She does not intend to name those summoned to give evidence until her report is published. “I can confirm that all persons summoned will be required to appear under oath...” More>>

ALSO:

Gordon Campbell:
On John Key’s ‘Blame It On Judith’ Strategy

Right now, Prime Minister John Key seems intent on limiting the scope of any inquiry into his government’s dealings with Cameron Slater. The declared aim is to make that inquiry solely about Judith Collins’ behavior with respect to the Serious Fraud Office. More>>

ALSO:

Maori Council Lawyers' Statement: Supreme Court Decision On Maori Water Rights

“…the Supreme Court refused to give Pouakani people what they asked for, but may have given them something much, much better instead… the Supreme Court has questioned whether the Crown owns the River at all.” More>>

ALSO:

Gordon Campbell: On The Debate, And The Collins Accusation

Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news