From your mayor - Facts and beliefs to be borne in mind

During discussion over the City Council’s adoption of the Draft annual plan and programme for 2002 I said there were two issues to be considered.

The following is an abridged version of my speech to the Council.

The Council is dealing with two issues in the debate: increased costs and perceptions.

The perception of many is that with the $175 million from Orion in the bank there should be no rate increases.

The reality was that theoretically many people, including Councillors, have hatched schemes that would have, in total, more than spent this money many times over.

If all the requests already voiced had been acted upon this lump sum would have been well spent.

The Council has faced increased costs in the past financial year, some of which have been partly within its control.

It cannot meet all demands, including those from Councillors.

It is hard at any time to meet all the requests.

In the same year the Council embarked on an efficiency exercise and has achieved savings.

Council income comes mainly from rates — and the ordinary people paying them are facing continual increased costs.

Christchurch has, historically, been lucky because past generations have been prudent in their financial management.

It cannot be assumed that this will continue forever.

The level of projected rate increases is unacceptable as it stands.

The Council should not accept that 4-8 per cent increases in future are automatic.

It also needs to be said that rate increases projected for other councils are higher than those of Christchurch.

Environment Canterbury has been looking at 9.8 per cent, Auckland 3 per cent, North Shore 7.6 per cent, Wellington 4.6 per cent, Hurunui 7 per cent and Ashburton 6 per cent.

Having the Orion funds available will help the City Council curb rates by 5 per cent over three years providing an immediate benefit to the public.

In the near future, the Council will also be looking at big costs involved in projects such as the new art gallery, the landfill and the new sewage treatment station.

I suggest that a small Council committee, headed by the City Manager, carry out a regular review of budgets by going through them line by line.

It has been an open Council that has managed to involve everyone.

Christchurch is a wonderful city and the Council needs to bear in mind that it is a big economic and social player in the city.

All sectors of the community expect this positive tradition to continue.

Contact: www.christchurchmayor.org.nz or each Friday Chat in Cathedral Square from noon.