NoMoreRates.com
The Nationwide Campaign To Reform The Council Rating System
Media release 23rd April 2009

Statement from David Thornton

Auckland City Council must stop committing its ratepayers to funding commercial losses.

Once again a city council has used ratepayers funds to underwrite a loss-making commercial event.

The $2.5 million loss on promoting My Fair Lady comes on top of Auckland City’s $85,000 ‘gift’ to the David Beckham disaster – and the Regional Councils almost $2 million loss on the Beckham game.

Just these two events have cost ratepayers in the region almost $5 million in the current financial year – and who knows what other loss-makimng events will emerge from the woodwork.

It’s time all councils came clean on how much they spend on promoting and underwriting commercial events which have an element of financial risk.

Too much is hidden from public view on the grounds of ‘commercial sensitivity’ – that must stop.

And if councils want to get involved in these risky ventures they should seek the approval of their ratepayers through stated policies in the Draft Annual Plan process.

Until then no council should bet on any risky venture with ratespayers as the ultimate, and unwilling, guarantor.

ENDS

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