Chris Davis: Outbursts unbecoming of a mayor

Central Hawke's Bay Mayor Peter Butler

Peter Butler seems to have a fixation on the level of Hastings debt to the point that his judgement as a mayor supposedly fairly representing his community is clouded and much of his bluster is simply incorrect and misleading. Perhaps he thinks that scaremongering and hoodwinking the community with outrageous claims and mistruths will intimidate and alarm residents enough to vote no to amalgamation.

The people in the community are not stupid and can see through the nonsense and fictitious arguments currently being put forward.

The level of debt is all relative. Hastings has vastly more infrastructure than either CHB or Napier and it is appropriately funding its new infrastructure development and renewals through a mix of loans and targeted rates.

Hastings spends considerably more on developing and upgrading its assets than both CHB and Napier, consequently its assets are in better shape than the other two. It's only natural then that Hastings debt is higher than that of the others.

Despite Peter Butler's bluster he knows full well that existing debt will be ring fenced following amalgamation, just as it was following the numerous local authority amalgamations that took place across New Zealand in 1989. CHBDC already practises ring fencing of its debt across its own communities, such as ring fencing of debt associated with the Takapau water treatment plant upgrading. The debt was funded by targeted rates on Takapau water consumers; other CHB ratepayers did not incur this cost.

Most home and business owners know that debt in the form of mortgages etc. is an effective means to home ownership and business development.

Likewise council debt (loans) is a practical means of funding infrastructure development and replacement by spreading the cost over more than one generation of users (intergenerational equity) rather than burdening current ratepayers with all the infrastructure costs now.

Some anti-amalgamation bill boards currently state that CHB's rates are 1.36 per cent relative to Auckland's 9.9 per cent. These two council areas bear no meaningful comparison, the scale of their respective assets is poles apart and it is pointless trying to compare them.

Whilst rates can be kept very low when nothing is been done to enhance or invest in the district's assets most residents know that rates in CHB are already much higher (as much as 50 per cent) than those in surrounding districts which enjoy better services. This situation will only worsen with large rates increases when CHBDC finally begins to address its old and run-down infrastructure. Residents will also not have forgotten that it's only a short time since consecutive rate increases of 25 and 33 per cent were levied on CHB ratepayers.

The current high rates are a reflection of CHB's huge roading network and small population spread over several little communities all with their own services infrastructure needs. The small rates base means that without massive rates increases work in these communities simply cannot be afforded, resulting in ongoing substandard assets.

Essentially CHB is far too small to stand on its own and needs the economies of scale that amalgamation would bring. If the mayor thinks Hastings debt is too high then he better think about what's likely to happen in the near future in CHB with looming infrastructure and deferred maintenance costs requiring increased debt funding, none of which will be affordable by the small number of CHB ratepayers that will be required to service this debt.

Recent multi-million dollar expenditure on makeshift wastewater treatment improvements, that is bound to need further upgrading within a fairly short time frame, is a good example of the sort of expenditure that will continue to increase CHB's debt level.

The mayor's venomous outbursts and mischievous antics are unbecoming of a mayor.

He needs to put aside his personal motives and focus on what's best for the community he's meant to serve, although it's probably too late for that ... as the polls will show at the next election.

Roll on the next election when hopefully we will get the chance to be represented by a progressive mayor and council focused on the long term growth and development of CHB. This growth is essential to CHB's economy and survival, but regrettably it won't happen with the present short-sighted incumbents.

- Chris Davis is the Managing Director of Nicis Consulting Ltd; Civil Engineering, Project and Facilities Management Consultants. He is a civil engineer with 50 years' experience in Civil Engineering, Project and Facilities Management. He has previously worked for Hastings District Council and provided consulting services to CHBDC.