Councils Spending On Non-Core Activities Concern Grey Power.

Grey Power is concerned that, according to the Minister of Local Government, councils, on average, spend almost 25% of their funding on non core activities such as water, drainage, sewage, etc.

As examples the Nelson City Council is proposing to spend $60 million on a Conference and Arts Centre projected to run at a loss. $8 million to be obtained from rate payers' pockets, to service loan depreciation, is far too much to ask.

Also the news media have reported that due to dwindling rugby crowds the Waikato Rugby Union owes the Hamilton City Council (HCC) back rent of $900,000 for the use of Rugby Park in the city. They are now asking the HCC to write off a portion of this.

Not only have many councils, particularly big city councils, spent millions of dollars on stadiums to host the Rugby World Cup, they have also, in some cases, understated extra requirements such as kitchens, big TV screens etc, and now expect ratepayers to fund these.

Various news media have reported that when these Jurassic Park stadiums were proposed after the Rugby World Cup hosting rights were gained, projections of crowd numbers were overstated. For instance, in Christchurch, the Management of the AMI stadium V base are now requesting that the Christchurch City Council (CCC) provide a further $45 million dollars because dwindling rugby crowds and high debt levels from the rebuilt spectator stands are causing a budget blow out. V base, a subsidiary of the CCC, with assets of $225 million, is struggling to service debt of $75.2m which was incurred for the development of the AMI stadium; and their problems are further compounded by the loss of the Rugby World Cup games and the fact that the stadium is unusable until 2012. The $45 million shortfall will result in a further 1% or $350 on each CCC rates bill and this along with the cost of major reconstruction of infrastructure after the earthquake is further increasing the anxiety for man
y senior Christchurch people who are already struggling to pay their existing rates bill.

The Finance Minister Bill English is telling us that cuts will take place in the public sector. He says the Government can no longer afford to fund 'nice to have' policies that soak up money needed elsewhere . These words certainly apply to councils in this time of restraint on spending.

Many ratepayers would like to see a halt to these non- core spending activities.

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