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

 


Mayor’s obsession with City Rail Link risky

MEDIA RELEASE 10th February 2014

[statement from David Thornton]

Mayor’s obsession with City Rail Link is leading city and ratepayers into a risky and unhealthy financial future.

Councillors need to take charge.

Mayor Len Brown's proposal to the Prime Minister is that the Auckland Council will fund the entire cost of the City Rail Link up to 2020 when the Government will repay 50% of that cost.

The Council's 10-year Long Term Plan shows that in the 5 years to 2020 the Council plans to spend a total of $2.4 billion, funded 50/50 by the Government and Council.

The Prime Minister, last year, gave conditional agreement to support the project which was then estimated to cost $2.8 billion. That cost is now likely to be at least $3.2 billion.

The Mayor and Council have assumed that the Government would fund half of the total cost, although the Government has not committed to that level of funding.

However the Mayor has failed, after three years of effort, to find a funding method for the Council's half-share.

The Mayor is asking the Prime Minister to provide a cast-iron guarantee that the Government will pay half the final total in 2020, and with that guarantee the Council would fund the entire project between now and 2020'

With no funding plan in place the Mayor will need to borrow the full cost with the ratepayers being the ultimate guarantors.

Interest on new borrowings would be funded from rates income with the result that rates will rise considerably and, or, funding for other infrastructure projects will be cancelled or deferred.

By increasing its total borrowings to raise this $2.4 billion the Council will reach its prudential borrowing limits, and probably its prudential interest limits.

The Mayors obsession with the Central Rail Link is leading to a very risky financial future where funding for essential basic services will be squeezed to meet the interest costs of the rocketing debt of the city.

This proposal comes from the Mayor and has not been discussed by the Council as a whole, and it is now up to councillors to take control of the situation and bring some clear and sane consideration of this dangerous situation.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On The Team Behind Trump's Throne

Forget the Putin factor. Daily, the team of charlatans, bigots and stunningly ignorant crackpots that Trump is appointing to head key federal agencies is just as alarming. These are positions with vast power and budgetary discretion over policies that stand to affect tens of millions of vulnerable Americans. Sad! More>>

 

Gordon Campbell: On Bill English, Abroad

If David Cameron was the closest thing John Key had to a political mentor, their successors also share a whole lot in common. Theresa May and Bill English were both propelled into the top jobs as the result of unexpected resignations, and without much in the way of credible competition from their colleagues... More>>

ALSO:

Pike River: Labour Bill To Override Safety Act For Mine Entry

“Bill English has been hiding behind the legal excuse that any attempt to re-enter the mine to recover the bodies might place the mine’s owner, Solid Energy Limited, and its directors in breach of the Health and Safety at Work Act 2015." More>>

ALSO:

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future? More>>

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news