Rotorua debt crunch review welcomed

FINANCIAL AFFAIRS: The Rotorua District Council has announced an independent review of the council's financial reporting during the past two years. PHOTO/ANDREW WARNER 140214AW17

Long-serving councillors are welcoming an independent review into the reporting of the council's financial situation.

Last Saturday, the Rotorua Daily Post reported the mounting debt crisis within the council had led to capital works projects being deferred and residents being told to expect a 3 per cent annual rates rise.

Some councillors said that they had not been informed of the extent and implications of the debt problem, for which they were criticised by several of our readers.

On Thursday, Mayor Steve Chadwick announced an independent review into the financial disclosures made to councillors during the past two years.

It will be completed by an external professional accounting firm, with chief executive Geoff Williams confirming the project would get under way "very soon".

Councillor Glenys Searancke said she was pleased an independent review would be carried out.

"I think it will put the matter to rest one way or the other, bring some finality to the whole situation - who's to blame and how did this happen?"

Mrs Searancke said she had been aware of the amount of the debt, but she was constantly assured it was controllable.

She was therefore shocked to hear how much spending on capital works projects would have to be cut.

She felt the review needed to be done by an outside party rather than internally.

"It's far better that we get an outside view that looks at the facts and figures."

Mrs Searancke said the review would cost money but it had to be done as the differing views among councillors led to uncertainty among the public.

"If we get an expert opinion, everyone will accept that."

Councillor Charles Sturt said he, too, was supportive of the review.

"[It] will put to bed hopefully issues of whether we were fully informed or whether things were withheld," he said.

He was looking forward to the report vindicating his comments that he and other councillors had continually asked questions about the financial situation but were "shut down".

In the past three years he had felt like a mushroom - kept in the dark and fed a load of manure.

Mr Sturt said there was a positive vibe, strong leadership and a good team at the council at the moment, so it was important the issue was resolved.

"We want to move forward."

Neither former chief executive Peter Guerin nor former mayor Kevin Winters could be reached for comment yesterday.