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

 

PARLIAMENT TODAY:

3-Year Transport Plan: No Plans On Six Northland-Election Bridges

The Transport Authority’s decision to fund only four of the 10 bridges promised in National’s shameless Northland by-election bribe is a huge embarrassment for Transport Minister Simon Bridges, Labour’s Transport spokesperson Phil Twyford says. More>>

ALSO:

Family Violence: Increasing Reporting But Fewer Resolutions

“We are aware the Police have embarked on a significant programme of change in how they respond to family violence. The data suggests that adequate resourcing including investing in staff training, support and culture change will be required for this to be effective.” More>>

ALSO:

Health: NZ Children Still Suffer Rickets From Lack Of Vitamin D

Vitamin D deficiency continues to cause rickets in young New Zealanders, new University of Otago research has found. The researchers say that their finding suggests that at-risk mothers and children should be better targeted for Vitamin D supplementation. More>>

Also GPs, Housing, Milk: PM Press Conference On The UN Security Council

In a press conference today the Prime Minister discussed the upcoming appointment of New Zealand to chair the UN Security Council. He said they would put pressure Asad in Syria and attempt to “jump start” negotiations between Israel and Palestine. More>>

ALSO:

Housing: State Houses Could Sell To Overseas Groups

Bill English’s admission that he would sell hundreds of New Zealand’s state houses to the Australians is the latest lurch in the Government’s stumbling, half-baked housing policy, Labour’s housing spokesperson Phil Twyford says. More>>

ALSO:

AND:

Gordon Campbell: On Climate Change Protest, And Iraq Training

For sheer style, humour and content fit for purpose, it would be hard to beat the Greenpeace protest at Parliament. The fact that the hanging of functioning solar panels from Parliament Buildings caused such spluttering outrage among fogeys old (David Carter) and young (David Seymour) added a Monty Python level of amusement to the whole event. More>>

ALSO:

Speech: Bill English Explains NZ Government To Australia

Here I am part of a successful government, now into its third term and hopefully with more to come. I want to offer some thoughts tonight about the business of government, from a centre-right perspective. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news