Cull of senior council staff to cost $47m, says Labour

A cull of senior management caused by the merger of Auckland's councils could cost the taxpayer up to $47 million, Labour claimed yesterday.

Super City spokesman Phil Twyford said redundancies among senior management could add up to $47 million to the $266 million which he claims the amalgamation will cost ratepayers.

Up to 100 senior council executives stood to lose their jobs, "all of whom will have gold-plated redundancy agreements".

He attributed the redundancy estimate to "well-placed sources involved in the transition".

But Local Government Minister Rodney Hide said Labour and Mr Twyford "just made that up".

"The people making the decisions don't know; I don't know how Mr Twyford does."

Mr Hide said although the cost of redundancies was yet to be established, the expense would be outweighed by the resulting savings.

Mr Hide says transition costs for the new Auckland Council will be about $160 million, including an additional $66 million in information technology costs which will be incurred from November 1 when the new council takes control of the Super City. But he yesterday acknowledged his tally of transition costs did not include those incurred by existing councils and other local government organisations such as Water Care Services.

Those expenses have been put at just over $40 million.

He says the transition costs incurred by councils and by Water Care Services are money that would have been spent anyway.

In the context of the $2 billion a year in spending by Auckland's councils at present and the $120 million to $240 million estimate of transition costs from Royal Commission on Auckland Governance, the amalgamation was going "extremely well and under budget".

The third and final Super City bill passed into law last night.

The Local Government (Auckland Law Reform) Bill, which had been split into three separate bills this week, was passed by 63 votes to 56, with the Government supported by Act and United Future.

THE BILL

* $47m - Redundancy payments according to Labour.

* $34.4m - Auckland Transition Agency.

* $125.7m - Implementation costs.

* $26.5m - Watercare set-up costs.

* $14.2m - Council costs.

* $247.8m - Total.