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

Gordon Campbell:
On Gaza And Burning The Israeli Flag

One of the selling points in New Zealand’s campaign for a temporary seat on the Security Council is that we have a pluckily independent voice to offer on international conflicts.

This image is not entirely self-delusional. When we did occupy a temporary UN Security Council seat in the 1990s, New Zealand was forthright about the need for the international community to actively respond to the Rwanda genocide. On April 14, 1994, New Zealand, Nigeria and the Czech Republic were the only nations to call for a forceful UN intervention to halt the killings. It was a proud moment in the diplomatic record of the Bolger government.

What then, is the current National government doing with respect to the slaughter in Gaza? More>>

 

Parliament Today:

TAIC Report: Urgent Recommendations After Melling Rail Accident

The Transport Accident Investigation Commission has made four urgent recommendations to KiwiRail following the accident two months ago (27 May) when a Matangi passenger train collided with a stop block at Melling Station, Lower Hutt. More>>

ALSO:

Red Tape: Local Regulations Go Under Microscope

The Government says it is accepting nearly all of the recommendations the Productivity Commission has made on ways to improve local regulations. More>>

ALSO:

Spending Questions: Claudette Hauiti To Step Aside At Election

National Party President Peter Goodfellow confirms that he has received notification from List MP Claudette Hauiti that she plans to step aside at the 20 September election. More>>

ALSO:

EPA: Board Of Inquiry Rejects Basin Flyover By Majority Of 3 To 1

The independent Board of Inquiry delegated to decide on the Basin Bridge Proposal has, by a majority decision (3 to 1), cancelled the Transport Agency’s Notice of Requirement and declined its resource consent applications for the construction, operation and maintenance of a flyover on State Highway 1 in Wellington City... More>>

ALSO:

Gordon Campbell: On The Non-Apology To Tania Billingsley

The refusal by Prime Minister John Key to issue a personal apology to Tania Billingsley has been accompanied by an array of excuses... Yesterday though, Key’s choice of words indicated that an apology was the last thing on his mind. More>>

ALSO:

Conventions: Winston Peters On The Nation

Winston Peters opens door to standing in East Coast Bays electorate, says it's an "exciting point" and he's thinking about it. "I’ve had a whole lot of people writing to me and calling up and saying ‘why don’t you have a go in East Coast Bays’." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news