Council Annual Plan process: statistics speak for themselves

Calvin Oaten joins the debate on council spending.

The Dunedin City Council chief executive officer, Jim Harland, used the Council Annual Plan forum as a platform to launch a stinging political attack against the Otago Daily Times for its editorial describing the Annual Plan process as a "sham".

It is unusual, if not unprecedented, for a paid servant of council to publicly make a "political statement", even if the editorial had "angered him so much" that he wanted to defend the process and his staff.

That Mayor Peter Chin concurred, at the pre-empting of his mayoral prerogative to make public political statements, is also a concern as to just who runs this city.

Was the editorial a reasonable comment on the process? Well, let's just look at the record of events leading up to it.

Take the matter of rates and the increases which currently irk a good many.

In 2002-03 they were $64.5 million, increasing to $97.8 million in 2009-10; an increase of 52%.

A further 63% increase is forecast over the next 10 years.

Then there is the perennial matter of the debt.

In 2001-02 this was some $57 million, now projected to be $360 million in 2010-11; an increase of 531%.

On May 23, 2003, the ODT published a critical editorial calling for council to "curb its spending".

It expressed concern that the then projected debt was to reach more than $150 million.

In fact it was $175 million.

At the time, the City Treasurer opined this level of debt was unsustainable.

Mayor Sukhi Turner vigorously defended the situation, saying the plan showed the debt would reduce as the Tahuna secondary treatment facility was being built.

Well, neither has happened.

Let's look at staff costs. In 2001 these were about $19 million.

In 2010 they are to be $45 million, an increase of 140%, despite that in the intervening period, the city's internal engineering staff was disestablished, resulting in a substantial reduction of staff.

This action took away the city's control of its engineering and structural design and oversight ability, placing it in the hands of private consultants.

We now spend millions each year on consultants' fees with no vetting powers.

We can't even get the St Clair sea wall ramp repaired.

On May 17, 2005, the ODT again editorialised on the problem of "spiralling rates".

Rises have exceeded inflation year after year since 1997, the list is 4.9%, 2.5% 5.7%, 2.9%, 1.9%, 2.9%, 2.8%.

In retrospect, those increases look quite reasonable compared with now.

The ODT again expressed concern at the level of debt being predicted at $162 million in 2010.

It is abundantly clear this council and administration is of no mind to contain its profligate ways.

As can be seen from these editorials, the debt has exploded in just the past three or four years.

The stadium, Town Hall/Dunedin Centre and Settlers Museum alone account for some $190 million and counting, on top of the previously announced $162 million.

Then there are the other incremental debt-funded activities, such as the purchase of Carisbrook for $7 million from who knows where? And the $600,000 per annum to run the new venue's management operation.

Where did that sum come from? Never mind the increasing pillaging of our council-owned group of companies with ever-increasing demand for dividends.

So, has Mr Harland grounds for complaining over his and council's performances being highlighted by our media? I think the people will decide come October.

Calvin Oaten is a Dunedin ratepayer.

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