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Home / New Zealand

Can we have some money, sir?

By Geoff Cumming
3 Aug, 2007 05:00 PM11 mins to read

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Many organisations vie for the public dollar, suggesting a good case for a regional levy.

Many organisations vie for the public dollar, suggesting a good case for a regional levy.

KEY POINTS:

The Auckland Philharmonia has just finished the annual chain dance: doing the rounds of Auckland's seven local councils and the regional council, cap in hand.

Hard on its heels came the surf lifesavers, the opera, the theatre, the coastguard ...

The rules of the dance are well-established: state
a compelling case for why you need the dough, endure the ritual humiliation as some hardliner grandstands about user pays and return on investment, come away with a third of the money you need. Then on to the next prospect.

Most ratepayers accept that some of our rates bills should go to supporting top-class theatre or stopping kids from drowning. These cultural and social services are part of what makes a decent city - and they have to be paid for.

The agencies themselves don't view the councils as cash cows: most scrape by on a mixture of sponsorship, donations, fees and retail activities. Councils are the icing on a frugal cake.

But Auckland's Balkanised local government set-up means regional service and cultural organisations must state their case eight times over.

Things got so desperate at the Philharmonia a few years back it needed a mid-year bail-out from Creative NZ. The APO's financial woes stretched the customary artistic tensions to breaking point and the orchestra became dysfunctional.

Nearly three years later, the restructured orchestra is playing better than ever and the players are in good heart, says chairwoman Rosanne Meo.

"But the biggest single issue continues to be remuneration. We still have [some] players trying to survive on $35,000. Compare that to what they can earn at the NZSO or Adelaide or Queensland ...

"The most important thing is to improve remuneration so we can continue to attract quality players and continue to grow."

For these organisations, the region's divided local government structure is more than a pain. The cure may be a Royal Commission (at least) away but these organisations want to cut through the procrastination by taking their own remedy to Parliament.

A private bill to ensure regional funding for 11 regional service and cultural groups is due to be tabled on August 15. The Auckland Regional Amenities Funding Bill, if it becomes law, will create a board able to levy each local council for a portion of the funds needed by the 11 groups each year.

The levy in the first year would be an indicative $12.7 million, rising to $16 million in year three (considerably more than the $5 million they receive now). Long-term, the levy would be a maximum of 2 per cent of the councils' combined total rates take.

By cutting through the boundaries between councils, the move fits neatly with the vision of one main authority to deal with Auckland-wide issues.

For years, the Auckland City Council has complained that it largely funds regional assets such as museums, the art gallery and the zoo - all of which are sited in its patch. That's reflected in current local body funding for the 11 organisations: $4.4 million from Auckland City, $650,000 from the other six councils combined.

The bill is modelled on the levy used since 2000 to support Motat and the Auckland War Memorial Museum, approved by Parliament despite local council hostility. But whether Parliament will look as kindly on the new bill appears finely balanced.

Opponents are using this week's announcement of a Royal Commission to streamline the city's governance to try to block the bill.

National MP Wayne Mapp says there's a case for deferring the amenity funding issue to the commission of inquiry, particularly with a Government inquiry into rates already under way. Mapp stresses the issue has yet to be discussed by National's caucus and he is awaiting a briefing from Minister for Auckland Issues, Judith Tizard.

But the North Shore MP says he is concerned about the impact on rates. North Shore ratepayers hopping over the bridge are among the worst freeloaders on amenities funded by Auckland City ratepayers, but Mapp counters: "When is Auckland City going to start funding the Bruce Mason Centre and North Harbour Stadium?"

He says the Royal Commission inquiry could be completed and recommendations in place before the 2010 local body elections.

But the bill's backers say they need funding certainty now and the inquiry outcome is unclear.

One of the architects of the bill is Grant Kirby, head of Motat when its regional funding legislation was passed. Kirby these days fronts the OneAuckland Trust, which is lobbying for a single-city authority.

"No question - if we had Auckland sorted out we wouldn't need the regional funding body," he says.

Market research indicates that despite the fears of local mayors ratepayers are willing to support even highbrow institutions, he says. "Even though they may not go to them they still see them as part of the fabric of the city."

The Auckland Theatre Company's just-finished run of The Crucible drew students from nearly 50 schools from as far as Wellington. The company nurtures playwrights and runs education programmes throughout the region but its council funding comes almost entirely from Auckland City.

General manager Lester McGrath says guaranteed funding would allow ATC to do more education and more performances in the community.

"It would be fantastic to take shows to the Glen Eden Playhouse or the Bruce Mason Centre or TelstraClear in Manukau and engage with people in local communities.

"At the moment we focus very much on day-to-day."

The plight of these agencies suggests an open and shut case for a regional levy but, as with most things Auckland, the devil is in the detail. The parochialism which dogs the city is apparent in the history of a bill designed to escape it. And, as Aucklanders know only too well, flawed process can lead to mediocre results.

Membership of this regional amenities "club" was determined by an Auckland City Council-appointed panel. The bar was set high - amenities thought necessary for a "world-class city".

Neighbouring councils say the process was less than open and driven by Auckland City's desire to spread its rates burden.

Waitakere complained that the WestWave Aquatic Centre missed out; North Shore was miffed at North Harbour Stadium's rejection. Franklin Mayor Mark Ball can't believe that the Glenbrook Vintage Railway didn't qualify when the Stardome Observatory did.

"It's a classic example of ad hoc decision making and the lack of leadership in the Auckland region," says Ball. A more holistic solution is needed, he says, including "a regional discussion about what makes a regional asset".

The inclusion of the coastguard and helicopter rescue service drew flak from the likes of the Herald's Auckland commentator Brian Rudman: "One is an air ambulance service that should be supported by the health authorities, and the other rescues sailors at sea, and should be financed by ship owners and insurers, or the Government, not land-bound ratepayers." But that line could be stretched to suggest that only opera buffs should fund NZ Opera and theatregoers the ATC.

It's arguable that the Art Gallery, Town Hall and Aotea Centre should be funded on a regional basis. They appear to have been left out for political reasons - even though the levy can't go towards capital costs, it was feared the planned $90 million art gallery expansion would cement outlying councils' unease.

There's another argument that the funding gulf could be solved simply by the Auckland Regional Council stepping up to fund these services from regional rates. But the council, still scarred by the 2003 ratepayers' revolt, is reluctant to broaden its ambit beyond public transport and environmental protection.

So far, so Auckland - but the bill is not just an Auckland City stitch-up. It outlines a process for other agencies to qualify, without increasing the levy pool. Under the proposed criteria, the list of potential candidates does not stretch far beyond those already mentioned. Only charitable trusts may join - Auckland Zoo, for instance, will have to separate itself from Auckland City.

An electoral college of council appointees would approve the total annual levy and appoint five of the 10-member funding board.

The bill's backers point to market research indicating ratepayers are happy to contribute to these regional institutions, no matter where they live. Sixty per cent of visitors to Auckland Zoo, for instance, come from outside Auckland City. Yet Auckland City ratepayers contribute $4.18 million each year; the other six councils give $111,000.

The outlying councils, including Franklin, Papakura and Rodney, argue that their residents make little use of these so-called regional amenities. But the levy contains a differential to allow for Franklin and Rodney's distance and appears to broadly reflect population and usage.

The "indicative" $12.7 million first-year levy would be split as follows: Auckland City $5.53 million, Manukau $2.51 million, North Shore $2.34 million, Waitakere $1.16 million, Rodney $650,000, Franklin $270,000, Papakura $230,000.

That seems fair enough in light of an analysis of visitors to The Edge precinct (the Aotea Centre, Civic Theatre and Town Hall). It shows 46 per cent come from Auckland City, 20 per cent from North Shore, 13 per cent from Manukau, 11 per cent from Waitakere, 6 per cent from Rodney, 2 per cent from Papakura and 2 per cent from Franklin.

But without National's backing, the Government may struggle to get the bill beyond the first hurdle. On the other hand, NZ First local government spokesman Brian Donnelly says reservations about the bill are all the more reason to table it and have the issues thrashed out before a select committee.

Minister for Auckland Issues Judith Tizard, who will introduce the bill, says to delay would be "like saying, 'There's a hole in the roof, let's wait till we've had the piles done'." Why wait? asks Tizard - whose mother, Dame Cath, adopted the same attitude when outlying councils refused to contribute to the Aotea Centre's construction in the 80s. The bill can run in parallel with the commission of inquiry, she says.

"The problems of the Auckland Philharmonia and the surf lifesavers aren't going to go away."

The First XI

Agencies qualifying for the proposed levy:

* Auckland Philharmonia Orchestra

* NZ Opera

* Auckland Theatre Company

* Auckland Observatory

* National Maritime Museum

* Auckland Festival Trust

* Northern Coastguard

* Northern Surf Lifesaving

* WaterSafe Auckland

* Rescue Helicopter Trust

* Auckland Zoo (subject to separation from Auckland City Council).

The numbers

* Auckland Philharmonia

Audiences: 400,000

Funding: 62 per cent through sponsorship, donations and ticket sales.

Local bodies: ACC $750,000, Manukau $15,000, North Shore $25,000, Waitakere $10,000, Rodney $5000, ARC $250,000.

* Auckland Zoo

Audiences: 556,000 visits.

Funding: 81 per cent through sponsorship, donations and admissions.

Local bodies: ACC $1.6m, Manukau $45,000, North Shore $30,000, Waitakere $26,000, Rodney $4275, Papakura $5000, Franklin $5000.

* NZ Opera

Audiences: 16,000 (Auckland only).

Funding: 74 per cent through sponsorship, donations and ticket sales.

Local bodies: ACC $75,000, Manukau $5,000.

* National Maritime Museum

Visitors: 100,000.

Funding: 70 per cent through sponsorship, donations, admissions and commercial activities.

Local bodies: ACC $725,000, Manukau $5000, North Shore $10,000, Rodney $5000, Papakura $1700.

* Auckland Theatre Co

Audiences: 75,000+

Funding: 66 per cent through sponsorship, donations and ticket sales.

Local bodies: ACC $105,000.

* Stardome Observatory

Audiences: 60,000.

Funding: 69 per cent through sponsorship, donations, ticket sales, retail sales.

Local bodies: ACC $225,000, Manukau $20,000, North Shore $6000, Waitakere $1225, Papakura $900.

* Auckland Festival

Audiences: 55,000 ticket sales; 285,000 free.

Funding: 58 per cent through sponsorship, donations and ticket sales.

Local bodies: ACC $1m.

* Surf Lifesaving Northern

Usage: 67,000 "preventive actions" and 808 lives saved last year.

Funding: 79 per cent through sponsorship and donations.

Local bodies: ARC $100,000, ACC $84,000, Manukau $30,000, North Shore $10,000, Waitakere $45,000, Rodney $40,000, Franklin $11,700, Papakura $10,225.

* Auckland Rescue Helicopter Trust

Usage: 500 missions a year.

Funding: 82 per cent through sponsorship, donations and grants.

Local bodies: ACC $4300.

* Northern Coastguard

Usage: 100,000 boaties.

Funding: 68 per cent from sponsorship, donations and membership fees.

Local bodies: Manukau $15,000.

* Watersafe Auckland

Usage: 181,000.

Funding: 74 per cent from grants and donations.

Local bodies: ARC $80,000, ACC $50,000, Waitakere $20,000, Manukau $20,000, Papakura $5000.

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