Mayor says city can cope with debt

Dave Cull
Dave Cull
Dunedin Mayor Dave Cull has said the city can cope with the $8 million shortfall identified last week, even though some services and expenditure might "get the chop".

Some commentators have suggested the city is in deep trouble, with the shortfall proof the most dire warnings about burgeoning debt have come to pass.

But asked yesterday if the problem was one that could be dealt with, Mr Cull responded: "Yes it is.""But even though it does not impact on this year's budget, we need to look at savings this year.""What we need to do is have a profound change in the way the council and its companies operate to lock in ongoing efficiencies."

That may mean deferring or "chopping" capital projects, and services.

Asked how more savings could be found when staff had already found savings last year, and were then asked to look again through departmental reviews this year, Mr Cull pointed to the hiring of new chief executive, Paul Orders.

One reason he had been brought in was to put in place "transformational change" in the organisation, so it could operate in a more efficient way, and he expected that to happen.

He had spoken to Mr Orders, and had sent him information on the issue of the $8 million shortfall, so he had background information when he arrived in the city.

Mr Orders had reiterated what had been concluded after recent reviews, which was that comprehensive change across the council "family", both the council and its companies, was needed.

Mr Cull said the time-line for dealing with the issues was yet to be put in place, but general managers were already looking at savings that could be put to the council, including capital investments that could be cancelled or deferred.

The issue of the "fundamental changes" to the structure of the boards of the council-owned companies may be a project given to one person to deal with, but no final decision had been made.

An August 10 council meeting would be "pertinent", as that was when the two reviews that uncovered the issues would be discussed.

Asked when the public, and the media, would get to see the reviews, Mr Cull said it would be "as soon as possible" after that.

It was generally accepted yesterday another mechanism had been identified to provide $3 million a year for stadium management company Dunedin Venues Management Ltd (DVML), meaning the figure to be found was closer to $5 million.

Details of that issue could not be ascertained, as acting council chief executive Athol Stephens could not be contacted yesterday.

Waikouaiti Coast Community chairman Gerard Collings has requested a meeting with Mr Cull on the potential shortfall.

Mr Collings was surprised by the "extent" of the council's debt problem and wanted clarification because it could affect the community board's spending priorities, which were under annual review.

"We want to be involved in the process," Mr Collings said.

david.loughrey@odt.co.nz

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