Borrowing not the answer

Porirua City Council’s Standard & Poor’s credit rating reflects the city’s ability to repay loans.

It doesn’t suggest or recommend the city should borrow more. The $6 million operating loss last year, and repeated inability to live within its own annual budgets and the 10-year plan, strongly suggests the council should borrow less.

Generally, most New Zealand councils score well – if a lender is unable to repay a loan, it can impose a special rate on ratepayers. So Standard & Poor’s is largely assessing Porirua ratepayers ability and willingness to meet a special rate.

As ratepayers have passively accepted rates increases greater than inflation in 27 of the last 30 years, it’s a pretty good indication we could and would pay a special rate.

Why has our council sought a rating?

To borrow more money, of course. And why does it need to borrow more?

Because our rates are used to prop up the costs of buying property and land for the CBD revitalisation, the loss of rental income as tenants move out, loss of rate income (the council is paying rates to itself so no income), and interest costs on the funds being used.

Assets like roads, sewerage and stormwater are being permitted to deteriorate further, with bandaid fixes increasing asset life.

The council could be far more financially savvy, and Porirua a better place to live and have a business, without becoming part of a super-city. chose to yell out while hiding behind a group of others.

I noticed the instructor did not intervene or attempt to stop it.

By not doing so, he has encouraged it.

As a leader of the group it was his responsibility to ensure adequate behaviour (and safety) was maintained. He was not there just to collect membership fees.

Because the group contained members of all age groups, those members were also exposed to that ‘‘acceptance’’ of such behaviour.

For any other elderly person, child, teenager etc, it would be outright intimidation that was allowed to continue and possibly escalate.