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Home / Business

How many contracts to wash a window?

Bernard Orsman
By Bernard Orsman
Auckland Reporter·NZ Herald·
14 Nov, 2015 07:57 PM4 mins to read

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One for the inside windows and one for the outside windows. Photo / iStock

One for the inside windows and one for the outside windows. Photo / iStock

How many contracts does it take to wash the windows at Great Barrier Island airport?
Two. One for the inside windows and one for the outside windows.

The separate contracts were uncovered by EY (formerly Ernst Young) in a report looking for better and new ways of financing the Super City.

When asked for more details, the council said contract information could only be provided under the Local Government Official Information and Meetings Act (LGOIMA).

The average cost of an LGOIMA request is $750 and a reply takes 20 working days.

Great Barrier Island Local Board chair Izzy Fordham said Spotless had the contract to clean the air terminal, but was unaware of two window cleaning contracts.

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"To be perfectly honest, it doesn't surprise me at all," she said.

However, Spotless group marketing general manager Marsha Burns today said the company did not provide any services to the Great Barrier Island airport.

Another issue raised by EY is the cost of flash accommodation for council staff at No 1 Queen St, saying the $550sq m cost could be pared back to the $450sq m cost, reflecting a B grade rather than an A grade standard.

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Auckland's highest paid bureaucrat, Auckland Transport boss David Warburton, who earns between $660,000 and $680,000, has had an office on the 17th floor of No 1 Queen St with spectacular harbour views since early last year.

Last night, an Auckland Transport spokesman said the council body had a strategy to consolidate and move to cheaper premises. It was actively pursuing other premises, but so far, nothing has become available.

A no-holds-barred review of council assets by two advisory firms - EY and Cameron Partners - offers up billions of dollars for the cash-strapped Auckland Council but little in the way of rates relief.

A proposed privatisation programme of Super City assets, range from golf courses to port and airport shares.

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The programme will not affect current rates, which rose by an average of 9.9 per cent for households this year after promises by Mayor Len Brown to peg them at 2.5 per cent.

There is a chance the level of rates increases could reduce in future.

Proceeds are earmarked for new roads, public transport, water connections and other infrastructure to meet Auckland's rapid growth. Some proceeds could go to reducing debt.

Mark Thomas, a centre-right candidate for the mayoralty, has given lukewarm support to privatisation of core assets like the airport and port shares.

"Many Aucklanders will be concerned at the prospect of reducing council's airport shareholding from the $1.3 billion it is currently valued at. But even if the current 22 per cent holding was reduced to 10 per cent, this would save Auckland ratepayers around $150 million in debt interest savings even adjusting for the dividend reduction," he said.

Mr Thomas said the Port of Tauranga has been New Zealand's most successful port with the Bay of Plenty Regional Council retaining a 54 per cent majority ownership. Under an EY proposal where council retains the land, but provides a long-term lease of a regulatory controlled operator to run the port, Auckland ratepayers could have $414 million additional to invest in other local priorities.

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He said said options to consider Watercare's structure and the Auckland Energy Consumer Trust are more complicated and would require central government consent. He did not see them as key priorities for now.

"Almost all of the EY reports 18 opportunities should be further investigated," Mr Thomas said.

"As Mayor I would make the sale of any significant asset subject to annual plan consultation, and this would include any change to council's airport shareholding, financial assets, the port or community assets such as golf courses."

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