Pay rises for councillors totally unacceptable

Ratepayers face possible council rates rise of 10% across Auckland region.

The current round of proposed pay increases for elected members of the existing councils in the Auckland is indefensible and totally unwarranted.

The pay rises will only apply for the last four months of each council – all of which go out of existence on 31st October.

There will be very little work for those councils during that four months – no annual plan to prepare, no major spending decisions to be made, in fact councillors will have the smallest workload of their entire three-year term.

The Remuneration Authority certainly has the power, if it so wishes, to make a ‘nil increase’ for these last four months of the councils.

Ratepayers will certainly be amazed at these pay increases which, while needing only a small increase in rates, come on top of a whole range of probable increases on next years rates including,

• General rate increases by all councils from 1st July of about 5% or more.
• Increase in Water Rates everywhere
• Increased rate demand from Auckland Amenities Fund.
• A probable rise in GST on rates of 2.5% [equals a 1% rate rise]
• Possible rates increases associated with the transition to Supercity.
• Risk from underwriting $40 million for Eden Park upgrade
• Some funding for work on Queens Wharf.

The potential is for an average real rate increase of 10% for the 2010/2011 financial year.

Mayors, Councillors and the Auckland Transition Agency [who will make the final decisions on all this] should remember the dire warnings in the 2007 Rates Inquiry Report which said that council rates were becoming unaffordable for many groups of ratepayers.

The Report also said that rates should represent no more than 50% on council income – already many councils raise between 63% and 71% of income.

The Government must turn its immediate attention to finding a new way to fund local councils – and local councils need to cut costs and reduce expenditure, which includes the need to redefine the role and services provided by local councils.

ENDS

© Scoop Media