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Home / Bay of Plenty Times

Our View: Tough task for new city chief

By Editorial
Bay of Plenty Times·
26 Jun, 2011 10:43 PM2 mins to read

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He hasn't even started his new job, but already the pressure is on Tauranga's new city chief executive to cut costs.
Tauranga City Council has fixed this year's average rate increase at 10.4 per cent, which works out to be an extra $194, on average, per ratepayer.
But Ken Paterson, who officially starts
his role on July 11 from his previous job of Northland Regional Council chief, has already got a taste of Tauranga politics in the form of Cr Rick Curach.
Cr Curach tried to put Mr Paterson on notice that he had to cut $2 million from running costs at a meeting last week.
The move, which followed a similar bid at an earlier meeting, failed but was revived by Cr Murray Guy in a reworded motion that removed the dollar amount. Cr Guy wanted to send a message that saving money was a key focus of the chief executive's job.
Both councillors Curach and Guy are to be commended on putting pressure on their colleagues to keep cost cutting at the top of the council agenda.
This year is proving to be a tough one for businesses and households across the region and ratepayers expect the councils they bankroll to keep costs to a minimum.
Tauranga is not the only council in the spotlight over spending.
The Bay of Plenty Regional Council has already been criticised by this newspaper and the public after sending 11 representatives to and from Christchurch at a ratepayer cost of $7200. They attended a powhiri to hand over former chief executive Bill Bayfield to local iwi Ngai Tahu in his role as Environment Canterbury's new chief executive.
Spending is a major issue in this city, with ratepayers expecting the council to spend wisely.
Tauranga has made strong inroads to cutting its costs. It has slashed $62 million of new spending this year so the city can live within its means - a tremendous effort. But its budget for 2011-12 is in the red by nearly $500,000 after the late discovery of extra insurance costs caused by the Christchurch earthquakes.
The message to Mr Paterson is clear. He has to deliver a leaner and more efficient council.
He would be wise to make this one of his first priorities.

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