Letters: Let's shelve non-essential spending

Rotorua Lakes Council.

I fully agree with Cr Sturt (Letters, January 22) that some council debt is good, to cover core services, for example roading, sewerage and water. An analogy can be those getting on to the property ladder but needing a mortgage to do so. A house is an asset that will accrue in value. A rental property is also an asset that will accrue in value, with the income, being market rent, covering the mortgage and maintenance of that asset. However, most home owners dealing with a large mortgage don't extend it to cover a grand world tour or other grandiose expenses but rather save for those.

Unfortunately, in my view council doesn't see debt that way, happy to extend it to cover projects that would be nice in another financial climate, but at this time should be postponed, rather like that world trip that would be nice but must be shelved for a few years until the debt is more manageable.

Whilst skate parks, bike tracks and sculptures are a great idea, they are a luxury, not essential, and should come under the "shelved" category at this time especially as we need a new sewerage scheme operational by the end of 2019 and our museum needs millions spent on it to be usable.

PADDI HODGKISS
Rotorua

Long term debt

In response to Councillor Sturt's letter on long term debt (January 22), I would like
to give one piece of advice; "Don't count your chickens before they hatch".

I agree Sir Owen Glenn's generous gesture of $3m donation towards the Sir Howard Morrison Performing Arts Centre is indeed admirable, given his emotional ties to his friend. However, I wonder how practical and cost effective fixing the building is. It is premature to predict that the donations are flowing to such an extent that it will be fully
funded by donations, without any contribution by the ratepayer.

I refer to my good debt/bad debt letter in response to the mayor's open letter. Unless it adds value or creates an income, it is a bad debt.

What council is teaching the youth of today, is the credit card style of spending, live for today, spend like there is no tomorrow, don't worry about the consequences when you live beyond your means, and the bank forecloses after you can't repay your liabilities, when they exceed the value your assets. Solution - the next generation or a philanthropist will pick up the tab. Shame there aren't more successful business people like Sir Owen Glenn on council, so we can stop counting on these crows.

TRACEY McLEOD
Lake Tarawera