Straight from city council A personal view, by Councillor Steve Morris

Government spending during recessions to ‘prop up' an economy when businesses and households reduce spending is a cornerstone of Keynesian economics. Council has a role in keeping our local economy working too.

We intended spending nearly $250m next year on infrastructure ranging from the Waiari Water Treatment Plant, so we can end water restrictions, to sewage plant upgrades, to new road projects like the Papamoa East Interchange. These provide local employment and build a better city. However, we're forecasting up to a $70m reduction in revenue due to COVID-19; made up of reductions in building fees, other fees such as the pools remaining closed, and less people able to pay rates.

The revenue reduction is significant because we're shackled to a debt limit of no more than 250 per cent of our revenue. This could force us to cut the works budget down to as low as $10m right at the time when our community is crying out for jobs; worsening the recession locally.

In my view, putting rates up to cover the shortfall isn't an option. We can't add to the pain households and businesses are feeling. In the worst economic event since the great depression we need to be bold. Now is the time to borrow to keep our local economy going.

Increasing debt is prudent because both short and long-term interest rates are the lowest they have been in living memory. It's not just TCC that needs to step up; Regional Council holds $2 billion in assets, largely through its shareholding in the Port of Tauranga. If the worst economic forecasts in 100 years doesn't justify leveraging that investment to create jobs when will it ever?