Reducing services floated, CEO says

 Sandy Graham
Sandy Graham
The Dunedin City Council has flagged service cuts may be in the pipeline if fuel costs and supply concerns continue to rise.

Chief executive Sandy Graham outlined the possibility at last week’s council meeting and a newly released annual plan document has also indicated the potential for cuts.

As councillors considered a consultation document on the 2025-26 annual plan last Wednesday, some questioned how conflict in the Middle East and subsequent rising fuel prices would affect operations.

Ms Graham said the council would have more information next month, when the plan will be considered for adoption, although ‘‘it’s not going to have a positive effect’’.

‘‘But we’re doing what we can to manage costs, but also levels of service — that’s the bigger issue.

‘‘Are we going to be able to continue, for example, to cut the grass?

‘‘Whether our contractors will have ongoing suppliers of diesel to be doing maintenance, whether that’s included as an essential service for sports fields? Probably not.’’

Any change to levels of service would be temporary and discussed further during the long-term plan process later this year, Ms Graham said.

Councillors approved the consultation document, with Cr Benedict Ong recording his vote against.

The document, released Monday, said service levels may temporarily reduce under ‘‘national fuel pressures’’ and the government’s fuel traffic-light settings.

‘‘For example, the council may defer non-essential or lower-priority maintenance until fuel supply and pricing pressures ease.’’

The document mentioned the council’s business continuity plans, which would manage unforeseen events, such as fuel supply disruptions or sharp price increases, and were focused on guaranteeing operation of essential services.

Yesterday, a council spokesman said challenges were expected across some areas of council operations, such as the price of roading-related materials, if costs continued to rise and would require careful management.

‘‘The [council] is fortunate to have some mitigating measures already in place — including flexible working arrangements and a partly electrified fleet — and we are now entering the colder months, when grass stops growing and demand for sports field maintenance reduces.’’

Business continuity was an ongoing consideration across council operations, and the organisation sought to ‘‘best maintain a range services in the face of a wide variety of challenges’’.

This included discussions with the government, led by Local Government New Zealand, about the situation in the Middle East, the spokesman said.

Annual plan consultation closes on April 29, ahead of hearings and a decision on adopting the plan next month.

ruby.shaw@odt.co.nz

 

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