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Home / Hawkes Bay Today

Terry Story: Amalgamation nothing to fear

By Terry Story
Hawkes Bay Today·
25 Aug, 2015 06:00 AM4 mins to read

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Terry Story

Terry Story

The ratepayers of Ruahine/Aramoana Rural Ward elected me as their member to represent their interests on the CHB District Council in 2007.

With the experiences of serving on a number of council's committees, I feel that I am well versed in the operations of our council.

Two years ago at a consultation meeting at the Waipukurau Library, councillors were discussing the 2013/14 Annual Plan with ratepayers.

We councillors were then asked to express our response to whether we were for or against amalgamation with our neighbouring councils in Hawke's Bay.

I was the only councillor at that early stage who was willing to express quite publicly that I was in favour of amalgamation.

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After that event, I recall being questioned by some councillors as to why I was for amalgamation. My response was a simple three words: "Economies of scale."

So how will economies of scale apply to CHBDC?

Some months ago, all five councils in Hawke's Bay commissioned an expert report. That independent report stated that amalgamation would yield savings of $10 million a year across the region, which issignificant.

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With amalgamation, four mayors and one regional council chairman would be eliminated along with their substantial salary payments - no longer paid for by you, the ratepayer.

This structural change will ensure our district will be very efficiently serviced, I believe better than the present structure.

Two councillors will represent all of CHB (elected by you, the ratepayer) and will be supported by local board members.

With all the featured articles over the last few weeks, readers will have read of the potential gains.

Discover more

Rebecca Turner: Say yes to a better future for the Bay

23 Aug 12:41 AM

Ngahiwi Tomoana: Unity in strength: come together

24 Aug 06:00 AM

Terry Kingston: Inter-council co-operation a better option

24 Aug 05:00 AM

Tony Jeffery: No case for merger

25 Aug 07:00 AM

I do not endeavour to repeat these here, other than to summarise that "Hawke's Bay" would be bigger, stronger and more cohesive.

We would speak with one voice and our submissions to central government would be stronger.

It is normal to fear change, but there is nothing to fear. There are several examples of successful amalgamations to draw your attention to.

In 1989, government legislation brought all town boroughs, county councils, pest destruction boards in CHB under the one umbrella with the birth of Central Hawke's Bay District Council. We haven't looked back.

Similarly, other local bodies in the wider Hawke's Bay - Havelock North and Hastings, Taradale and Napier - have also been brought together.

About seven years ago, the 186 councils ( shires) in Queensland, Australia amalgamated, and as at the writing of this report only four have opted out.

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Although we read and hear of alleged negative outcomes arising from the birth of the Super City and exaggerated reports of current rating levels, the facts are as follows:

-One fifth of Auckland ratepayers have had a decrease in their rates. The precise average rate increase is $115 per ratepayer - more than last year's.

-10,000 (out of 518,784) properties have had substantial rate increases, due solely to a 50-90 per cent increase in the value of these homes. As we all know, rates are based on valuations, and these homes are in the $800,000 to $2 million plus bracket.

-Also, all ratepayers have been charged with a $120 transport levy to upgrade transport facilities.

One of our country's best known economists, Bernard Hickey, will tell you the increased expenditure is necessary to catch up with work not done by the previous eight councils. It is worth noting that at the Local Government conference this year, the Minister of Local Government said that she expected councils to perform to a better standard and would step in to achieve that. Add to that an announcement from the director general of health a few days ago that some DHBs could have their numbers of local elected representatives reduced as the Government might be placing its own representatives on those boards to improve governance.

This could apply to our district council if we were not meeting central government expectations.

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The minister has stated "there will be change".

CHB people should grasp the opportunity to amalgamate, because if we, the people, choose not to do so, it will only be a matter of time before we are forced to, and probably not on the terms proposed today.

The ball is in our court, and I for one embrace amalgamation and the opportunities it offers Central Hawke's Bay.

-Terry Story is a Central Hawke's Bay District councillor

-Business and civic leaders, organisers, experts in their field and interest groups can contribute opinions. The views expressed here are the writer's personal opinion, and not the newspaper's. Email: editor@hbtoday.co.nz.

-Viewpoints on the amalgamation debate can be submitted for consideration and will be used as long as no council resources, money, time or expertise are used in their preparation. This is a requirement of the Local Government Act 2002.

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