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

 


Auckland Council debt weighs heavily on city plan

Auckland Council debt weighs heavily on city plan


Auckland Council debt will reach $12,000 per ratepayer by 2021/2022 or $5378 per capita if the present trend continues, the Employers and Manufacturers Association advised the Council hearings on its draft Annual Plan today.

"The projected Council debt of $12.6 billion in 10 years is far too high to sustain," EMA's chief executive Kim Campbell said.

"At present Auckland ranks 11th in New Zealand for council debt per capita at $2134, or $5 billion in all, but the projected rise of it over the term of the Long Term Plan is a real concern," Mr Campbell said.

"While we support the judicious use of debt for the development of long life assets as fair and reasonable to achieve intergenerational equity, the statement of the Council's prospective income (p 110 of the Plan) shows the cost of financing the additional debt is rising rapidly.

"We have some sympathy for the Council because part of the debt burden was inherited from past decisions and practices of our legacy councils. Some of them borrowed to fund operational costs and used depreciation to make up the difference. The result is the Auckland Council is now borrowing to fund some of the replacement capital.

"The risk is that the vast majority of Council borrowings are secured only by revenue from rates, not Council assets since these are unable to be sold, or unlikely to be sold to repay debt.

"The bottom line is future lenders could become cautious about continuing to roll-over and extend loans to Council at favourable rates.

"We know the Council is aware of this risk but at some point it could face a financial crisis.

"We reiterate that projected debt levels are too high and reducing them will require the Council to lower its operating costs and reduce its capital investment."

Other issues EMA raised at the hearings included transport, population projections for Auckland, the low level of the Uniform Annual Charge, the unacceptable business differential, the review of the CCOs and PPPs.
A link to EMA's submission is here.<https://www.ema.co.nz/resources/EMA%20Reports%20and%20Documents/Advocacy/Submissions/2014/EMA%20Submission%20to%20the%20Auckland%20Council%20Draft%20Annual%20Plan%202014-2015.pdf>

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

TAIC: Final Report On Grounding Of MV Rena

The Transport Accident Investigation Commission (the Commission) concluded that the Rena grounding was not in any way attributable to the malfunction of any on-board machinery or equipment, including on-board navigational equipment. Factors that directly contributed to the grounding included the crew:

- not following standard good practice for planning and executing the voyage
- not following standard good practice for navigation watchkeeping
- not following standard good practice when taking over control of the ship. More>>

ALSO:

 
 

Parliament Adjourns:

Gordon Campbell:
On The Pakistan Schoolchildren Killings

The slaughter of the children in Pakistan is incomprehensibly awful. On the side, it has thrown a spotlight onto something that’s become a pop cultural meme. Fans of the Homeland TV series will be well aware of the collusion between sections of the Pakistan military/security establishment on one hand and sections of the Taliban of the other… More>>

ALSO:

Werewolf Satire:
The Politician’s Song

am a perfect picture of the modern politic-i-an:
I don’t precisely have a plan so much as an ambition;
‘Say what will sound most pleasant to the public’ is my main dictum:
And when in doubt attack someone who already is a victim More>>

ALSO:

Flight: Review Into Phillip Smith’s Escape Submitted To Government

The review follows an earlier operational review by the Department of Corrections and interim measures put in place by the Department shortly after prisoner Smith’s escape, and will inform the Government Inquiry currently underway. More>>

ALSO:

Intelligence: Inspector-General Accepts Apology For Leak Of Report

The Inspector-General of Intelligence and Security, Cheryl Gwyn, has accepted an unreserved apology from Hon Phil Goff MP for disclosing some of the contents of her recent Report into the Release of Information by the NZSIS in July and August 2011 to media prior to its publication. The Inspector-General will not take the matter any further. More>>

ALSO:

Drink: Alcohol Advertising Report Released

The report of the Ministerial Forum on Alcohol Advertising and Sponsorship has been released today, with Ministers noting that further work will be required on the feasibility and impact of the proposals. More>>

ALSO:

Other Report:

NSW Police Statement: Three Dead Following Martin Place Siege

About 2.10am (Tuesday 16 December), a confrontation occurred between police and a man who had taken a number of people hostage inside a café on Martin Place. Shots were fired during the confrontation. As a result, the 50-year-old man was pronounced dead after being taken to hospital. Another man, aged 34, and a woman, aged 38, were pronounced dead after being taken to hospital. More>>

ALSO:

Gordon Campbell: On The Sydney Siege (And DHB Budget Cuts)
Whenever the authorities bring a siege situation to an end, there will be criticism if – as has happened in Sydney – any hostages are seriously hurt, or killed... In the Sydney Morning Herald this morning, columnist Peter Hartcher raises a different point – that the initial public response had been noticeably different to the agitated reactions of politicians and the media. More>>

ALSO:

Leaked Cabinet Papers: Treasury Calls For Health Cuts

Leaked Cabinet papers that show that Government has been advised to cut the health budget by around $200 million is ringing alarm bells throughout the nursing and midwifery community. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news