Council is broke and the Government does need to fix it.

Councillor Christine Fletcher confirmed today she will vote against the Auckland Council’s Long Term Funding Plan in its current form.

‘Residents in the Albert Eden Roskill ward have been paying an average rate increase in excess of 10 per cent every year since amalgamation in 2010 and will continue to do so if this plan is allowed to proceed. This is a completely unacceptable and unsustainable situation’ she said.

Tomorrow’s budget vote is the culmination of what has been a fraught consultation process on how to adequately fund infrastructure in order to meet the demands of growth, while failing to review council expenditure. The issue of rate increases has been compounded by rising Auckland house prices that have seen a 17.7 percent median increase in capital valuations.

‘Throughout this process my concerns about the impact of the proposed budget on residents in Albert Eden Roskill have been ignored and now we have a crisis.’ says Fletcher

‘A crisis isn’t necessarily a bad thing if it becomes a springboard for change.’

‘What’s needed is a complete review of the activities council is involved in and a refocus back to core council business.’

‘The government must assume some responsibility in this situation. It introduced amalgamation of the council, but has been unwilling to conduct any further review of the legislation, which would be normal practice after such major reform.’

This has been worsened by the failure of the Government to support a user pays motorway charge or petrol tax for transport infrastructure, leaving the Council with no alternative funding options than a transport levy or targeted rate.

‘It is not enough for the Government to throw bricks from the side lines, there needs to be recognition that Auckland needs other funding tools to support transport infrastructure. At the same time council must be willing to review expenditure with the intention of dramatically reducing the general rates requirement.’

A recent OECD report confirmed Auckland’s transport and congestion woes stem from longstanding under funding issues.

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