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Home / Waikato News

The Robinson Report: What fiscal restraint

Hamilton News
25 Mar, 2012 05:00 PM4 mins to read

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We could expect Waikato Regional Council would get the message on fiscal restraint, but a hard-core councillor majority appears intent on expansion at all cost. With local government downsizing now a virtual certainty, WRC is pulling out all the stops to make sure it is in the new Government movie.

One move is to spend their way into a bigger bunker.

Hitting letterboxes this week is WRC's slickly designed Your Waikato Special Edition the combination marketing tool and public relations exercise designed to sell the council's 10-year programme and to keep the spotlight off controversial decisions.

Regional council bosses have been on the back foot for weeks trying to explain away their expansion plans which see full-time staff balloon out to 460 and salaries blow out to over $3.7m in the next three years. You know something is wrong when defensive statements spew from council communications staff almost by the day.

Headlining WRC's proposed 2012-22 Long-term Plan is a $34m "council castle". The announcement of a lavish building plan for its own office space in Hamilton East has shocked Waikato ratepayers.

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Recall how red-faced councillors feverishly denied expansion intentions when they raided the public's nest egg investment fund for a controversial $3.8m land purchase only three years ago? "We're just keeping our options open," they insisted. But critics could pick a porky and they were right.

Meanwhile, bungling chairman Peter Buckley and his supporters proved they are naive amateurs at real estate finance. First, farmer Cr Norm Barker explained, with no supporting evidence, why council favoured owning the new building. Barely two weeks later, after professional prompting, councillors admitted leasing would be less of a cash drain.

Buckley's bunch has kept all the talk on 'leasing versus owning', refusing to consult the public on whether to build at all. They know what the answer would be.

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WRC has offered no rationale for the massive outlay other than assumed maintenance savings and hypothetical productivity gains. An internal council report confirms the flash new office will cost ratepayers at least an additional $1.4m in the first five years' occupancy. And that number assumed theoretical 'efficiency' savings of more than $4.8m from dubious items like reducing staff walking times between buildings. The true cost to ratepayers could wind up over $6m instead if those fuzzy 'efficiencies' fail to convert into cash.

While WRC plans to expand, Statistics NZ projects total Waikato population growth close to zero through 2031 using conservative assumptions. Only the four Rats Control Team councillors have been responsible enough to connect the dots and oppose the $34m building plan completely.

Of course, big offices reflect other big ticket spending habits. Tucked away elsewhere in the Long-term Plan are the hard 20-year costs of the St Peter's School cycling handout. Rates will be hiked by close to three-quaters of a per cent to pay for a giveaway overwhelmingly opposed by the public.

As for the multi-million dollar financial black hole called Maungatautari, ratepayer bleeding will continue indefinitely. When bailing out MEIT trustees in 2009 with a three-year deal approaching $1m, councillors promised an end to automatic subsidies. But the sceptics were right - WRC now proposes making MEIT life support permanent, with millions more flowing into the mismanaged 'charity' starting with $300,000 this year. When it comes to MEIT, don't believe a word, just look at the bill.

And, if you read between the lines, ratepayers should prepare for millions more in rates to pay for changes to the Lake Taupo clean-up scheme.

On the income side, Buckley's Rates Increase team has flaunted council's own rates affordability policy with a whopping 3.9 per cent increase this year, more than double to Reserve Bank annual inflation figure of 1.8 per cent.

But the most painful part of the WRC charade starts now. And that's the little game called 'we want your opinion'. The 10-year plan is available only online or at libraries and council offices, so council can expect very few submissions from frustrated ratepayers. WRC has already proved its consultation process is a farce - look for further than the 64 per cent submission against the velodrome fiasco.

Next year's local body elections will be the next best chance to make a meaningful submission. Until then the WRC spending machine will roll on.

robinsonreport@gmail.com

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