Commission firm on funding claim

Napier City Council chief executive Wayne Jack

The Local Government Commission is continuing to stand by its claim Napier City Council has under-invested in infrastructure after the council yesterday released a new consultants report it says shows the commission's assessment is "error-ridden".

Earlier this month, the commission said a study of council-owned roads and water systems across Hawke's Bay showed Napier City and Wairoa District councils would need to spend tens of millions of dollars to bring their infrastructure up to the standard of the networks owned by the Hastings and Central Hawke's Bay District councils.

The commission has used that conclusion to support its proposal that all council debts and financial assets be "ring-fenced" to current council areas until 2021 under its plans to amalgamate the region's local authorities.

But a furious Napier City Council accused the commission of using incorrect figures, including road network valuations it says are out by almost $1 billion.

The commission stood by its findings last week, saying even using Napier's figures, its ring-fencing proposal is valid.

It maintained that stance yesterday when Napier City Council released a fresh consultants' report which it said confirmed its concerns about the commission's analysis.

The council-commissioned report from infrastructure management consulting firm AECOM said the data used by the commission "distorts the comparison of conditions between the councils".

"We consider that a greater level of analysis would be required before drawing any firm conclusions regarding the relative current and future financial positions of the councils," the AECOM report said.

But a spokeswoman for the commission said the AECOM report appeared to confirm the finding of the consulting firm MWH which it engaged to survey the councils to provide the information it based its report on.

"Both AECOM's and MWH's analysis confirm the commission's decision to ring-fence debt and assets was valid, as they both point to the fact that councils have different starting positions with regards to financial assets and infrastructure renewal," the spokeswoman said.

"The issue of roading valuation methodology is only one aspect of the work done on assets and infrastructure. The bigger conclusions from the MWH report and Napier City's own Waugh report were that councils across the Hawke's Bay have significant future challenges in renewing their core infrastructure assets - particular water and waste water assets - as they age and depreciate."

Napier City Council chief executive Wayne Jack said the commission's stance on ring-fencing was not an issue, but its view that the city needed to spend extra, unplanned money by 2021 upgrading its infrastructure was a concern.

"They are saying that because there is an infrastructure problem, we need to start addressing it. We don't have an infrastructure problem."

Mr Jack said he had asked for a face-to-face meeting with the commission.