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

 

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>

ALSO:

Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>

ALSO:

General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>

ALSO:

Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>

ALSO:

Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news