24 July 2009

Communities Stand To Lose Out, Says Papakura Mayor

The Government’s Supercity proposal will have a direct economic impact on communities like Papakura according to Mayor Calum Penrose.

Forming a unitary authority based in central Auckland with absolute power over spending will eliminate local spending by current councils and their employees.

“Our many local contractors and suppliers stand to lose the income generated by having a local Council buying goods and services locally. The Supercity is not going to buy printing from ten or fifteen smaller suppliers across the region. Why would they?”

Mr Penrose said a Supercity might claim financial efficiencies in buying from larger centralised suppliers “but actually, they are hitting communities where it hurts most, and right in the middle of a recession.”

“In a lot of cases the bigger suppliers are not cheaper on a job-by-job basis because they have higher overheads and different fee and pricing structures. Our local suppliers have a relationship with us, understand our needs and can respond quickly.”

Mr Penrose says the Council currently purchases a diverse range of services and products in Papakura. Its main infrastructure maintenance contract is with a local company, and sub-contracts for some parts of the recently-completed town centre enhancement project were also delivered by local contractors.

“Maintenance supplies, printing services, event materials, sound and lighting services, fuel, vehicle servicing, power, gas, water and many other items are purchased by Council here in Papakura. Every day many of our staff head into the town centre to buy lunch or to shop at local businesses. Most of us support local shops out of preference, and out of a sense of loyalty to the District.”

A central-Auckland based Supercity would feel no such sense of loyalty and no particular compulsion to support a community such as Papakura.

Mr Penrose says the effect of losing this level of spending will be felt throughout the community.

“I believe the loss of millions of dollars of spending within this community will have a severe effect on some of our suppliers. We’re talking numerous job losses among those businesses and the potential loss of some businesses from the district as they revise their planning for the future.”

There is little detail available yet about how the transition to the new Supercity will be structured.

“We have now advised all our contractors what we believe will be happening late next year – though of course there is no detail about how things will actually pan out. It’s actually likely we will see the first effects of the change long before then as the transition authority starts to prepare for the establishment of the new Council.”

Mr Penrose says he can see the same situation playing out in all of Auckland’s communities as the Supercity is established.

“This is gathering momentum right now, and I think the message to businesses who rely on local councils is they need to be keeping the pressure on local MPs, on the Minister of Local Government and on the Prime Minister to make sure we keep local democracy as we move to the new Supercity. The Council web site www.papakura.govt.nz has a full Supercity page that includes email and other contact details for all Auckland MPs, the Minister of Local Government and the Prime Minister. These details are also available in hard copy from reception at the Council offices in Coles Crescent.”

ENDS

© Scoop Media