26 April 2016

Getting the basics right for Auckland

Auckland Mayoral Candidate Vic Crone has announced her first set of policies, fiscally responsible commitments she says are fundamental basics of building a world class city.

The policies were jointly developed with Auckland Future and the announcement includes lifting council performance in four key areas: keeping residential rates low, cutting waste, reducing staff costs and controlling debt – essentials that council needs to get right.

“Last year ratepayers faced a 9.9 per cent average rates increase, for some it was a shocking 15 per cent. As Mayor I will cap average residential rates increases at 2 per cent per annum for the next three years,” says Ms Crone.

“If council isn’t being cost-effective, timely and smart with its spending, it’s downright outrageous to expect more from ratepayers.”

Vic Crone’s leadership will deliver at least $500 million in savings with a focus on reducing back-office waste, efficient procurement, cutting duplication and imposing a Mayor-led Line-Item Review programme.

As a start, Crone will reduce staff costs by 5-10 per cent over the next three years and cap staff numbers at current levels, saving up to $80 million.

“It’s concerning that every year for the last three years council has exceeded its staff cost budget line by over $50 million. I will put a stop to this trend while protecting frontline staff, core services and key capital investments.”

She says any additional operating surpluses will be prioritised toward paying down debt faster than forecast.

“I understand even with minor changes in interest rates, council could breach the 12 per cent interest payments to revenue cap under its current debt management strategy. I’ll ensure council is repaying debt above the current plan target and impose a review of this strategy to better protect Auckland’s interests,” Ms Crone says.

“I would like to acknowledge the Auckland Future candidates who worked together on developing this policy, and other centre-right Council candidates for their input.”

“Council can be a high-performing organisation that delivers real results for ratepayers and is ahead of the game. I have the strong leadership, fresh ideas and energy to get there and it starts by getting the basics in order.”

For more details see the attached policy document.

http://img.scoop.co.nz/media/pdfs/1604/FINAL_VC_FISCAL_POLICY.pdf

ENDS

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