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

 

Promised Council Savings an Epic Fail

Promised Council Savings an Epic Fail

At the last elections Mayor Goff promised he would make efficiency gains in Auckland Council of between 3 to 6 per cent saving $72 million a year.

Internal documents reveal that Goff only found 0.3% in spending cuts. If that isn’t bad enough half of that was from Auckland Transport, which was done by capitalising some opex. Only 0.03% came from savings from within the parent Council organisation itself. That is an epic fail.

So the Mayor has relaunched his efforts announcing a Value-for-Money study boasting $373 million in potential savings. Goff said in his press statements that the savings would be reinvested into vital services and infrastructure for Auckland.

The $373 million is for identified potential savings over a 10-year period. To put that into context that’s $37.5 million of possible savings a year, or 1% in theoretical savings. It is another epic fail because until these savings hit the financial statements Aucklanders can have little faith that they will ever be delivered.

Alarm bells should be ringing about Council’s ability to deliver, signalled by the wages blowout at Auckland Council. For another consecutive year the wages bill has blown out by $42 million to $853 million. The equivalent of a 3% rates increase just to compensate for the poor financial management around delivering to budget.

The previous three years has seen the wage budget exceeded by $32m, $63m and $50m. How on earth can Aucklanders trust the Council to be responsible with their money. Mr Goff has failed to deliver any meaningful changes to the Council’s overspending culture or to improve its ability to deliver on targets.

So perhaps it’s not surprising that thoughtful commentators from across the political spectrum are speaking out about an Auckland Council that is perceived to be becoming increasingly ineffective, undemocratic and misguided.

With promises not kept the Mayor’s new plan is to tax Aucklanders. Council actually needs to stop wasting money and make the 3% to 6% savings, rather than putting its hands deeper into ratepayers pockets.

Housing affordability will see the most disadvantaged families carry the biggest burden from applied fuel taxes and targeted rates. The Mayor’s inability to secure in-house budgetary savings is set to punish those who can least afford it. Council is losing its way.

Perhaps all the extra revenue raising would be acceptable to Aucklanders if the promises to cut wasteful spending, to find promised efficiencies, and to have any savings directed into infrastructure had happened. But none of this has happened.

Aucklanders understand there are questions around huge funding shortfalls. However, the Council’s proposed budget has no timely solutions for these, which is plainly not an acceptable answer for Auckland.
-ENDS-

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote. We also acknowledge the men who supported the cause and voted for the Bill to pass.

“Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.

“Aotearoa New Zealand has a female Prime Minister, we have women in cabinet. And I’m here as Acting Minister because the Minister for Women Julie Anne Genter is on maternity leave. New Zealand is a good place to be a woman!” More>>

 
 

Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>

ALSO:

'Post-Settlement Era': Māori Crown Agency To Be Established

Cabinet has approved the final scope of the Māori Crown portfolio and agreed to establish an agency to oversee Government’s work with Māori in a post-settlement era, announced Crown/ Māori Relations Minister Kelvin Davis. More>>

Gordon Campbell: On Our Military Roles In Iraq & Afghanistan

The politics of the deployment extension have degenerated into a slanging match about whether the previous National government was right or wrong to make the initial commitment to Iraq – and whether the extension is a responsible thing given our joint training role in Iraq with Australia, or is hypocritical in the light of prior statements made by a previous Labour leader... More>>

ALSO:

Commissioner To Be Appointed: Govt To Dismiss Board Of Whitireia And WelTec

Education Minister Chris Hipkins has made a preliminary decision to appoint a Commissioner to Whitireia and WelTec to address the two polytechnics’ financial woes. More>>

ALSO:

Open Government Action Plan: Government To Proactively Release Cabinet Papers

The Cabinet papers will be released no later than 30 business days after a Cabinet decision. This process will be in place for Cabinet papers lodged from 1 January 2019... More>>

ALSO:

NZ Initiative: Evidence Of "Huge" Government Waste

It is not so much that spending is being literally wasted. Rather the best performing countries are achieving much better outcomes relative to their spending. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels