The Auckland Ratepayers’ Alliance is demanding that Eke Panuku stop spending more than it makes from managing the Council's property portfolio.

In a statement published last night, Eke Panuku responded to pressure from the Ratepayers' Alliance and Mayor's office by providing a summary of its expenditure and income for the 2022/23 financial year. The Council Controlled Organisation reports that it will generate a ‘net surplus’ from the Council’s property portfolio of $19.8 million but plans to spend $24.1 million on staffing and consultants.

That excludes a further $4.5 million on staff costs charged to the Council for property sales.

Ratepayers’ Alliance spokesman Josh Van Veen said, “Panuku is asking ratepayers to prop it up with a further $4.3 million to cover big staff salaries and consultant fees. These ratepayer subsidies must end immediately. All operational expenditure should be covered by income from the Council’s property portfolio.”

The Ratepayers’ Alliance has asked Panuku to disclose the net contribution from properties Eke Panuku managed in the financial years 2020/21 and 2021/22. However, the agency is yet to respond.

“We find it concerning that Panuku apparently won’t even give the Mayor a clear explanation of its net cost to ratepayers,” Mr. Van Veen said. “But every year Panuku goes cap in hand to the Governing Body and every year the Governing Body digs into the pockets of ratepayers. These subsidies must end.”

The Ratepayers’ Alliance is gathering signatures for a petition to suspend ratepayer funding of Eke Panuku in the 2023 annual budget. Mayor Brown is expected to release his budget proposal in December.

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