Amalgamation
The financial reality is settling in on the Gore District Council and its ratepayers. The GDC has fast run out of options and needs to explore amalgamation. The predicament it now faces is an approximate weekly interest bill of $54,000 on its $60million debt.
Borrowing more, to keep this year’s rate rise to 9% in this election year, is unsustainable.
It is interesting to read the letter in the Ensign, June 25, page five, from an aggrieved ratepayer voicing their concerns about Mataura’s treatment after the 1989 GDC formation. What about the rural people that got roped into this economic disaster? Rural gravel roads were beautifully maintained under the old Southland County Council. These same roads are now a diabolical mess and getting worse under GDC’s tenure. Recently a fuel tanker driver was concerned about safety delivering fuel on a gravel rural road.
Rural people have to take care of their own sewerage, water and waste. The only essential major service that rural gets from rates is roading. We need the help of Southland and maybe Clutha to help fix our roads.
We were repeatedly told that all new amenities would attract people to the district. Interestingly in 1989 GDC started with 14,600 residents; 37 years later it was barely 13,000. These new amenities have driven up debt to an unsustainable level beyond our economy of scale. People come in from Clutha and Southland districts to use these facilities. An amalgamation enables a far greater ratepayer base to share the load.
Amalgamation would also reduce the number of district plans required. At $5m a pop, the savings would be huge. Rural Southland and its small towns only need one plan. Mayor Ben Bell doubts that there would be savings. Is he willing to have an independent analysis carried out to identify any economic benefits and demonstrate his concern for hurting ratepayers, or is this about patch protection?
The GDC certainly punches above its weight when it comes to huge rate increases and ballooning debt.
