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Home / New Zealand

<i>Dialogue:</i> Full speed ahead with hard decisions

20 Dec, 2001 08:53 PM4 mins to read

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The Birch report is the catalyst for refocusing Auckland City's priorities so that a mountain of debt does not accumulate, writes mayor JOHN BANKS.

It is a privilege to be the Mayor of Auckland and I propose to the best of my ability to do the right things and to do things right.

I campaigned long and hard, openly and honestly, for all the changes now taking place in New Zealand's biggest city. I owe a duty of care and I do not intend to abandon it.

The landslide victory at the recent election was not a vote for me but a vote for leadership. It is not business as usual at the Auckland City Council.

I have a vision for this city. I want this to be the finest place in the world to live, raise a family, do business, relax and enjoy life.

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The report this council commissioned from former Finance Minister Sir William Birch was paid for from savings within my office and is excellent value for money.

Auckland City is one of the largest businesses in the country, with assets of $3.4 billion and annual turnover of more than $360 million.

We, the council, are responsible for managing this business as efficiently as possible and the Birch review is a useful tool for ensuring that core services are provided at the best value for money.

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For me, there needs to be a justification of all policies, with expenditure that is compelling. We need to unscramble and refocus all priorities. At this stage we have inherited a strategic plan with no long-term funding proposal.

The Birch report has recommended activities that can be quit and has also identified areas where we can save ratepayers' money and improve service.

I have been close to Auckland local government for 24 years. The residents of Auckland have elected some talented people and the newly elected council is the best I can remember.

Auckland Citizens and Ratepayers Now councillors and two independents form the majority of the 19-strong council and occupy all the chairmanships. I make no apology for this; we are here to make a difference.

The former council voted for projects with no idea of how it would pay for them.

Presumably it would load future generations with a mountain of debt.

We will be accountable for how we spend ratepayers' money. Our relationship with the public will be open and honest.

The Birch report is about getting the basics right. We have some big expenditure requirements not far down the track. If we are not prepared to make the changes, our debt will rise from $153 million to $367 million over the next four years.

That would mean increased rates and/or more borrowings. Unlike the previous council, we are not prepared to lay that burden on the hard-working homeowners and tenants of this city, who would inevitably face rate and rent increases to pay for that recklessness.

The citizens of Auckland have clearly told us that their number one concern is traffic congestion, and addressing this is a priority.

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I am committed to completing the Auckland motorway network, including Highway 20 and the eastern corridor along with Spaghetti Junction and Grafton Gully.

We have some frightening costs in front of us for stormwater and drainage. I have not been able to get accurate costs for this, but it will be in the thousands, not hundreds, of millions.

Auckland cannot be a truly international city without huge capital expenditure on basic infrastructure. That is why I am now doing a comprehensive financial review.

I have been in business in this city for 36 years. Auckland has been kind to me. I am now going to repay some of this good fortune. I can make a difference. It is not going to be easy.

We need to take decisions that are hard and with some people inevitably unpopular.

Auckland City needs dynamic leadership to promote us as a contemporary and vibrant city. We also need a well-managed infrastructure.

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We must promote Auckland to the world as a hub for innovation, knowledge and investment. The job of the city council is to provide an efficient and stable platform from which we can deliver growth.

I want us to celebrate Auckland's success in business, sport, the arts, tourism and social cohesion. I am committed to a city that is a safe and upbeat place for us to work, to have fun and to raise generations of talented New Zealanders.

The people who elected me did not want me to shy away from the hard decisions and I will not. We must not stand still. We are going to move Auckland forward.

On a Schubert piano sonata score there is an instruction to the player: "As fast as possible." Over the page a few bars later, there is another instruction: "Faster."

The Birch report

Feature: Getting Auckland moving

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