Letters: Footrot Flats, rates increases

A return to financial discipline has to be led by the mayor and councillors, writes John Kape. Photo / Gisborne Herald

Letters to the Editor

Footrot Flats

I understand that Footrot Flats won’t appear again in the Gisborne Herald unless there is enough demand.

I would like to call for its return. It’s a good reminder of the legacy of Murray Ball in Gisborne/Tairāwhiti and quite amusing.

Barbara Barwick

Gisborne

Stop the rate rises

Council has increased rates more than 40% over the past five years, with average rates going up from $3000 per year to more than $4000.

The 40% increase has happened during a period where inflation has gone up only 20%. The large rate increases are putting households under pressure.

It’s worth taking a closer look to better understand what is driving the increases.

Council reports show its bigger cost increases in the past five years include:

• Council’s total salary bill, which has gone up more than 40% from $26 million in 2022 to nearly $38m projected for this year.
• Financing costs, including servicing council’s debt, which has gone up 300% from $2m a year to $8m.

The big increase in salaries appears to be the result of the council taking on a lot more staff and, in some cases, large increases in managers’ salaries. The total increase looks excessive and undisciplined. It has increased by 60% since 2021.

There is room to get the salary bill back down to $33m over the next couple of years. That would be 30% above the 2022 level and more than enough to cover inflation.

This return to financial discipline has to be led by the mayor and councillors. That will come from all voters putting pressure on each candidate, including the mayor, to commit to rate rises of no more than 2% a year over the coming term, including 2026/27.

It’s tempting to say the rate rises have been needed to fund the recovery from Cyclone Gabrielle. I believe that is not the case. The recovery costs have been largely met by the government and by increasing council debt. Hopefully, as the recovery projects end, that will help lower the council’s costs.

The council activity where the relative cost has increased the most is something called ‘regional leadership and support’. This has increased a whopping 140% from $13m in 2022 to $31m projected for this year.

That activity includes community engagement, policy and planning, support services like financial and legal and the cost of the chief executive’s office.

John Kape

Gisborne

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