More robbing Peter to pay Paul?

Cr Bill Faulkner
Faulkners Corner
www.sunlive.co.nz

Continuing last week's column item about the Bay of Plenty Regional Council's infrastructure fund presented by Regional Council staff, it was interesting to learn the details straight from the horse's mouth.

As noted last week Western Bay and Tauranga ratepayers pay a huge part of the Regional Council's rate take. It is a little disconcerting therefore to learn that of the $200 million infrastructure fund borrowings almost $150 million is committed over the 10-year plan to rivers and drainage and the Rotorua Lakes. All worthy expenditure, no doubt, but there are pressing financial problems here in the Western Bay that could have done with some significant financial assistance too.

It cost $5.4 million in establishment costs to set up the fund. $10,159,691 was used to buy Regency House in Elizabeth Street. The fund pays 5.42 per cent interest to the Perpetual Preferential Shares (PPS). Regional Council charges a margin of 2-2.5 per cent. Any grants made don't pay interest of course. If all this is getting hazy you can be excused.

The situation today is that there is $38 million up for grabs for regional infrastructure and there are $250 million worth of applications. The central part of all this high finance comes back to the Port shares and their value. IF for whatever reason the value of these shares drops, then so does the dividend. Quayside holds these shares, 55 per cent, we were told, and has six directors, three of which are the Regional Council CEO plus two elected members, Paula Thompson and Jane Nees, as noted last week. I also need to clarify from last week's item that directors fees of around $50,000 are only paid to Paula Thompson and Jane Nees. Regional Council CEO May Anne McLeod is not paid as a director of Quayside.

This shareholding means two seats on the Port Company Board and one of these is taken by Regional Council chairman John Cronin, who gets paid directors' fees in 2012 of $51,625. Directors' fees for this directorship are paid by the Port Company.

It is of concern that, in my view, whilst the Tauranga Western Bay ratepayers pay up significantly in Regional Council rates, it is the rest of the region that is being subsidised. Robbing Peter to pay Paul was how I phrased the question. The response from staff was that the politicians had voted for where they saw the greatest priority. It is probably coincidental that Tauranga only has four seats on the 14-seat Council but that may have had a clouding effect on one's view of where the greatest priorities lay? One thing is sure and that is that the Regional Council's activities warrant much closer independent scrutiny from the communities they serve.

When the Regional Councils were created I stood (unsuccessfully) and at that time I said that there was the potential for them to become rampaging financial elephants stomping all over the ratepayers. The voters didn't like that message at that time but may care to reflect on the present day. No, that's not a tout for votes. In the interim the Government has banned a Council electee from holding a Regional Council seat. But it's okay for an MP to be a Councillor as well. How's that for selective democracy?

Projects and Monitoring Committee elected members heard a presentation from Papamoa Progressive Association promoting air raid sirens as the tsunami warning system. It was a slick presentation that unfortunately waivered (no pun intended) and tended towards the emotive aspect at times. That's not to imply support for Council's present preferred tenderer of the Meerkat system. Certainly it will cost ratepayers to change as stage one of the tender is under way. As I've noted before, tsunami sirens will have limited value. If the tsunami source is close to our coast, say the Kermadec Trench, then the tsunami will likely be here before the official warning is issued. This takes about an hour. If it's in Chile or Japan then there will be 6-9 hours' warning. But community demands indicate that sirens are required and that's what is being done. In my opinion Central Government should legislate a New Zealand-wide standard tsunami siren system so everyone will know what it is. Meanwhile, yet another report will be generated back to elected members, summarising all actions, reactions and consequences for yet more consideration. As a bonus it's likely that ratepayers may not be paying for the sirens too.

An interesting aspect of the statistics produced in the monitoring report on wastewater treatment. In August last year 25,035 cubic metres was treated and 35,254 this past August – an increase of 10,219 cubic metres. This was due principally to stormwater entering the sewer lines illegally and accidentally. This is costly stormwater disposal. Council staff are running an ongoing project to track down and eliminate these leakages and you can help by sealing up gully traps and any other entries to the sewer system that are not wastewater-related.

I'm still on about a memorial to Michael Hodgkins, aka Springheel Jack, and his (at least three versions) terrier Angus. Michael and Angus were character features around town in the 50s and 60s. He could be described as ‘eccentric' but he had a brilliant mind and spoke beautifully. He introduced many a school kid to the joys of nature, flora and fauna in an era where if it moved you shot it and if it stood still you cut it down. Michael was buried in an unmarked grave as a pauper but recently the local historic society placed a commemorative plaque on it. I've asked Creative Tauranga for funding help through government grants available for this sort of thing for a mural depicting Michael and Angus. David Bell has come up with photos of some of Michael's drawings he used to do for us kids, but we need a photo of Michael himself. If anyone can help please email me at wrf@clear.net.nz

Meantime I've asked The Weekend Sun to run a background story and print some of these drawings.

This week's mindbender from Winston Churchill. 'Never, never, never give up.”

You may also like....