Wairoa council eases stance on spending

Wairoa District councillors are reconsidering plans to put local projects and appointments on hold.

Wairoa District councillors have been warned they risk potential personal liability if they don't back down on a contentious decision to curb council spending.

Yesterday's extraordinary meeting was the second hastily arranged meeting in a fortnight and it saw councillors partially back down on the decision to hold off on spending more than $1 million.

The councillors were told they risked potential personal liability and also faced avoidable legal and political risk if the council did not revoke a decision made at an extraordinary meeting on September 12.

At that meeting, the council voted to suspend funding for 12 projects, initiatives and appointments until a review of spending and priorities was carried out.

The move was supported by four councillors (Hine Flood, Chris Joblin, Benita Cairns and Mike Bird) but opposed by Mayor Craig Little, his deputy Denise Eaglesome-Karekare and councillor Min Johansen.

Legal advice received by the council this week warned the decision to curtail spending gave rise to unintended consequences, particularly around the employment of the council's newly appointed Maori relationship manager, David Tipoki.

Mr Tipoki started work at the beginning of this month, but funding for his position was one of the items highlighted for suspension in the September 12 resolution.

Yesterday councillors voted to revoke the earlier resolution, with the exception that suspension continue for $650,000 of spending earmarked for four projects: Whakamahia Beach enhancement; Marine Parade toilets; i-Site refit; appointment of a human resources manager.

A resolution was also passed affirming Mr Tipoki's appointment was not in any way affected by the earlier resolution or subsequent events.

At yesterday's meeting, attended by about 40 members of the public, Mr Little said there was clear concern about council spending in some areas, including items that had been approved through the annual plan process and others that had not. The mayor said he was happy for spending on the items of concern to be put on hold pending more details being presented to councillors at a later date.

Mr Little said the issue had caused undue stress on Mr Tipoki and his whanau, for which he apologised.

Mrs Cairns said: "We might have been naive in the way we approached it but that does not dismiss the fact that we have valid concerns about the financial implications for this organisation."

One area of expenditure removed from the list of suspended items was $300,000 for new council office accommodation and fit-out.

Chief executive Fergus Power told the meeting his staff were working in overcrowded and "atrocious conditions" and improving the council's office space was "a necessary step, not a nice-to-have step".

The four councillors at yesterday's meeting, and Mr Little, were in agreement on the resolution, which passed unanimously.

Ms Flood was absent because she was overseas. Mr Joblin was also absent.

Mr Little said Mr Joblin had left a council workshop held earlier in the day and had not given a reason for not attending the council meeting.

Mr Joblin could not be reached for comment.