No risk of default, says Tiller

The Kaipara District Council says there is no risk of it defaulting on loan repayments, despite a financial report that raised concerns about its debt levels.
The independent report by Tauranga-based PJ & Associates, released to the public on Wednesday, notes the council's high debt level and recommends it reduce its reliance on debt from 2013 onwards.
Mayor Neil Tiller said the council was actively managing its debt and was following expert advice on the best way to do this.
"Council has already begun implementing some of the recommendations [in the report], including the appointment of independent treasury advisers who will assist with the management of council's debt and investment portfolios.
"Council is financially sustainable," the mayor says.
"The report is what it is, a warts and all comment on council's financial health.
"Council's debt is higher than many would like but are still in a very manageable position."
He acknowledged problems could occur if the council did not properly manage its debt but noted this would happen in any organisation.
At Wednesday's council meeting, chief executive Jack McKerchar and governance and policy manager Glennis Christie both said there were a number of issues, including figures, they wanted to check before the council debated the report.
This new information would be bought back to the council by September.
In answer to a direct question from Deputy Mayor Julie Geange - "Are we going to be okay?" - Ms Christie reiterated assurances the council was not in danger of defaulting, saying the report indicated it had until 2013-14 to implement necessary changes.
Yesterday, Mr Tiller said the Mangawhai Community Wastewater Scheme had significantly contributed to additional debt.
The council had been left with little choice than to exceed normal debt level criteria to implement the wastewater scheme because of the increasing levels of human sewage finding its way into the harbour.
The debt repayment for the scheme, via targeted rates, is on a small population base.
Growth expectations have not been met because of the global economic downturn.
Mr Tiller said only around $4.5million of the council's $80million debt was serviced by the general ratepayers, the rest was serviced through targeted rates.
He said likely future changes could be made by doing away with the sinking fund policy for servicing debt.
Currently $4 million was deposited with the Public Trust as sinking funds and was providing poor returns.
The council will be reviewing all its financial and rating policies as part of the Long Term Plan process and the financial sustainability report itself will be workshopped as part of this same process.
Public consultation will be part of the process.