Phil Twyford

Auckland Issues spokesperson

19 November 2010 Media Statement

Hide’s mythical $48 million an admission of failure

Labour's Auckland Issues spokesperson Phil Twyford says Local Government Minister Rodney Hide made up a figure of $48 million in unspecified cuts in order to be able to claim the Auckland super city would save money for the ratepayer.

"The Minister plucked the $48 million dollars out of the air. There is no rigor, no basis for his budget figure. He simply made it up so that he could claim savings. This is the worst example of governing by bluff and bluster.

"Mr Hide trumpeted a 3.9% rates increase, down from the 6% that would have resulted from the eight councils being merged. But now it has been revealed that he wasn't happy with the 6% and told his officials to cut that to 3.9 by adding a so-called efficiency target of $48 million of unspecified cuts.

"This is dishonest. The Minister is trying to give Auckland Mayor Len Brown a hospital pass. What is the Mayor supposed to do: close the Museum? Stop collecting the rubbish?

"In spite of getting rid of 1200 staff, Mr Hide hasn’t been able to make the savings he has been trumpeting,” Phil Twyford said.

"My fear is that when the true transition costs come out, including those for the Council's new IT system, ratepayers will be in for a nasty shock.

"I don't think anyone seriously believed Mr Hide's claims the super city would save money for the ratepayer. But this revelation will make Aucklanders fearful that the structures Mr Hide has put in place will lead to rates hikes. It explains why the Government's super city legislation postpones the introduction of a new rates regime until after next year's General Election."

ENDS

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