Regional rates rise looming
New regional councillors could be in for a post-election shock if financial details leaked from a confidential ‘‘last-minute’’ meeting at Greater Wellington Regional Council are true.
A councillor workshop – closed to the public – was called last week to discuss a slew of major financial issues and what incoming councillors should be told.
Several councillors were cagey about what was discussed but confirmed it took place. One said less than half of all elected councillors attended and the meeting was called at the last minute.
According to a source close to the council, a host of financial issues means a 15 per cent rates hike would be needed within the next financial year even after major spending cuts – some of which would need to take place immediately.
A wide range of financial issues were alleged to be behind the financial crisis, including a bus network redesign that allegedly cost tens of millions more than expected, a sub-par payroll system, a set of aborted financial and asset management system upgrades, and Infratil’s sale of Snapper earlier in the year that drove up costs to the council.
Council chief executive Greg Campbell reportedly said at the meeting: ‘‘We need to work out what story we tell the new council. This is the price of regional leadership. We are getting involved in many things we didn’t before.’’
Campbell is overseas but GWRC deputy chief executive Nigel Corry said: ‘‘While we cannot comment on the specifics of the meeting, we can assure ratepayers that the council meets regularly throughout the year, in workshops just like this, to balance activities against future rating levels.
‘‘It is normal for the council at this stage of its triennium to look forward and plan accordingly to ensure the next elected council is fully aware of its activity levels and commitments.’’
Regional council candidate Phil Quin said the numbers were so bad an incoming council could be replaced by commissioners within six months if the figures turned out to be correct.
Independent commissioners can be appointed to run a regional council if the Government no longer has confidence in it.
Quin said the appointment of a commissioner would lead to ‘‘draconian cuts’’ at GWRC. A breakdown of the numbers should have been given to the public before voting papers went out.