Media statement Tuesday, May 7, 2013
Embargoed till 3pm, Tuesday, May 7, 2013

Tauranga’s low rates increase applauded. Will the Mayor set up his own office?

Tauranga Council’s new financial strategy has allowed it to keep this year’s rates increase at a decades-low average of 0.66 per cent, said Employers and Manufacturers Association’s (EMA) executive officer Peter Atkinson at the Council’s Annual Plan hearings today.

“The strategy set out in last year’s Long Term Plan (LTP) seems to be working,” Mr Atkinson said.

“The Council’s financial position appears stable.

“But last year’s surplus should not be carried forward as planned to facilitate this year’s rates reduction.

“Council’s own policy as stated in its Long Term Plan is for surpluses like this to be used for reducing debt, not for reducing rates.”

Mr Atkinson also asked if Tauranga’s Mayor had any intention to set up a separate Mayor’s office as allowed under the recent changes to local government law.

“Mayors can now appoint deputy mayors, establish committees, appoint committee chairpersons and propose plans and budgets in the same way Auckland has done,” Mr Atkinson said.

Mr Atkinson challenged the Council to demonstrate how it was integrating the new purpose statement for local governments legislated last year: “to meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses”.

“Enhanced ministerial powers in the local government law changes, and also in proposed changes to the Resource Management Act will allow central government to override council plans on certain occasions,” he said.

“We urge Tauranga Council to work with the Local Government Association to set new standards for council plans and reporting as the legislation requires, as this will give ratepayers a better understanding of the efficiency and effectiveness of council operations, and let them compare the results of the different councils.

“In many ways Tauranga is an exemplar council for New Zealand and many other councils could improve with Tauranga’s help and guidance,” Mr Atkinson said.

ENDS

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