Public express disgust: call for belt-tightening

Jim Harland
Jim Harland
Angry members of the public are calling for belt-tightening within the Dunedin City Council to control millions of dollars of spending on ratepayer-funded credit cards.

The Otago Daily Times received a steady stream of emails from readers yesterday, most expressing a mixture of anger and disgust at the amount spent by council staff on credit cards over the past three years.

And council chief executive Jim Harland's handling of the issue will "certainly" come under the spotlight at his next performance review, a councillor believes.

Cr Andrew Noone, speaking this week, said spending on staff cards was an operational matter, and it was up to Mr Harland - as the elected arm's sole employee - to deal with the issue "as he sees fit".

However, Cr Noone said he would be among councillors likely to raise the matter during Mr Harland's next performance appraisal.

"There is an opportunity to raise it through the performance appraisal committee process. That's where I will certainly be raising it. No doubt others will be raising it.

"It will be certainly a topic of conversation through that process, but that's for the future."

ODT readers have their say. ODT graphic.
ODT readers have their say. ODT graphic.
His comments follow revelations the council's top 36 managers - including Mr Harland - and four personal assistants had together amassed a $534,500 bill over three years.

That included $100,500 spent on food, coffee, entertainment and drinking, $7000 of which was deemed to be questionable expenditure by small groups of staff meeting in central city cafes.

However, total spending across all 206 credit cards in staff hands over the past three years was expected to be "probably a couple of million or more", Mr Harland said on Monday, although details had not yet been released.

Revelations about the spending came after it was confirmed last month Mr Harland had received a $17,000 pay rise, taking his total remuneration to $352,000, following his latest performance appraisal.

Contacted yesterday, Mr Harland said his performance was judged "on a daily basis", while financial management of the council was a key consideration during his annual performance appraisal process.

"I would expect it to be part of my formal appraisal every year."

Mr Harland's next annual appraisal was due on March 6, with results - including any pay rise - expected to be announced several months later. His contract was up for renewal on March 7, 2012.

Mr Harland said he remained "comfortable" with the spending figures, but concerned some businesses receiving legitimate transactions from the council - as well as some council managers - had been singled out.

"But this is an open and transparent process," he said.

Cr Staynes, who warned Mr Harland about the number of council staff meeting in cafes nearly two years ago, also believed the matter was a governance issue for councillors to address.

"I think there's a reason for council, as the governance body, to have a good look at the credit-card issue."

Asked who was responsible for any problems, Cr Staynes said: "I would have thought all the department managers, who sign off on expenses, and then, of course, the chief executive."

The ODT received more than 20 emails yesterday from readers upset at the spending, as well as three from readers defending the council.

Fiona Polson, of Dunedin, saying Mr Harland's contract should be "axed immediately" and credit-card use suspended until they could be reallocated to fewer staff.

"I am sickened by the sorry affair. Yet again the ratepayers have been let down."

Ron Carolin, of Dunedin, said staff should be using invoices instead, as well as the council's in-house kitchen and cafeteria facilities for meetings over coffee.

Gary Charters, of Dunedin, said it was "disgusting" the spending occurred as many Dunedin businesses continued to struggle in tough economic times.

". . . I have started contemplating moving because I'm not prepared to pay high rates for such ignorance."

Stew Webster, a former council employee, said he was "incensed, but not surprised" by the spending.

"They can defend it all they like, but in the end it is a gross insult to ratepayers who are struggling to pay their ever-mounting bills and rates and other increased council charges.

"There is a principle here and council staff ... need to rein in their indulgent habits pronto."

George Burck, of Dunedin, wanted councillors to have more "intestinal fortitude" to control staff spending, while Sue Todd believed the "arrogance" of staff "defied belief".

Jay Ray said spending was "out of control across the board".

"There are many good and appropriate issues requiring money spent on them, sewage outfalls for one, but coffee and stadiums are not on that list from my perspective."

However, Bill Driver, of Dunedin, stressed the spending was spread over three years - as reported by the ODT - and "is not out of control", and the issue was being used by council candidates "to promote their image".

John Burton, of Dunedin, said the spending was being "blown up out of proportion".

"Of course council staff should be responsible in their spending, but at least credit cards allow audit and no doubt this spending will be more closely watched in future."

Sam Rofe, of Tauranga, said he admired the council's ability to "punch massively above their weight", as shown by the decision to build the Forsyth Barr Stadium.

"I applaud the expenditure - long may it continue."

The spending has also generated debate on the internet, including on the ODT website, where there were calls for council spending details to be posted online each month to improve transparency.

- chris.morris@odt.co.nz

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