Making savings at the DCC

The departure of a second member of the Dunedin City Council's executive management team this week, less than a few months into the tenure of new chief executive Paul Orders, would seem to demonstrate the new broom is intent on making sweeping changes. This is how it should be.

He was brought into a council which has over several years demonstrated a largesse out of step with reasonable ability to pay.

As well as setting his sights on some of the major capital and maintenance projects on the city's books, he needed, in the first instance, to turn his attention closer to home: the organisational structure and cost efficiencies of the council itself.

The first evidence such a process was in train began with the former customer services general manager, Grant Strang, opting for voluntary redundancy in October following the announcement of restructuring proposals.

Now council community life general manager Graeme Hall has decided on a similar course to end a decade-long stint with the council. This followed, according to Mr Orders, "robust discussions" with Mr Hall and others over the reshaping of the organisation.

Their departure - nor that of any others who may follow - should not be seen as a reflection of individual performance, but rather of the need for organisational review and renewal.

Indeed, any similarly sized organisation should conduct similar reviews regularly.

Assuming the two will not be replaced, their departure signals long-term savings of $360,000-$400,000 on the council's salaries bill. While not fully explicit, it seems that as part of the restructuring process the responsibilities of the former portfolios are being redistributed, along with a reallocation of job titles, to the remaining members of the executive team.

Thus Athol Stephens, as finance and resources general manager, will look after finance, property, human resources, technology and the customer services agency.

Sue Bidrose, city strategy and development general manager, will have responsibility for economic development, libraries, galleries, museums and other cultural resources.

Operations general manager Tony Avery will oversee water and waste services, transport operations, regulatory services, aquatics recreation and reserves. Human resources manager Bruce Miller's role is unchanged.

The changes, beginning as they have at the top of the organisation, are a good start. They signal an intention to make hard decisions where they are most needed and, having set the tone for his administration, it will be easier for Mr Orders and his general managers to move through the lower reaches of the DCC seeking out efficiencies and over-staffing.

It is expected that during the next year or two there will be further significant scrutiny of activities and services.

This should not descend into an arbitrary "slash and burn" exercise: services provided to the ratepayers still require support and management. But there is always the potential to look again at working methods and test them against national and international best practice. Nor should a negative mind-set be attached to Mr Orders' fresh perspective on the council, its staff, its assets, its liabilities, its opportunities and challenges.

He acknowledged this week that the council's investment in capital projects, including Forsyth Barr Stadium, would help position the city in "regional, national and international terms"; the restructuring he has set in motion would place the city in the best position to take advantage of these assets.

The apparent decision to place debt management and reduction towards the top of Mr Orders' plan of action is the correct one.

The DCC must continue concerted action to avoid further capital commitments other than on the most urgent and socially necessary of projects, and reduce ratepayer liabilities as rapidly as possible.

Such tasks are imbued with greater urgency by the fragile world economic situation. Just as individuals and national governments must take decisive steps towards fiscal austerity, so, too, must local body authorities. This message is finally ringing loud and clear in the town hall.

 

Add a Comment