It's interesting following the dissection of Auckland local government as central government plucks out the plums and leaves the crumbs for the democratic process.

Now the ratepayers are revolting, but sadly it's too late and the ‘local' is being stolen out of local government. Transport, water, wastewater – all major monopoly infrastructure expenditure items will soon have no direct political oversight (water is already run by Metrowater, a CCO). Instead, they will be run by council controlled organisations (CCO), with directors appointed first by central government and subsequently by councils. Directors are paid director's fees and CCOs can make a profit and could be subject to tax. If CCOs are bundled under one holding company to offset tax losses between one CCO and another, then it is also possible for one CCO operation to cross subsidise a loss CCO. For example, it's easy to make a profit out of water supply. It's a monopoly so you can charge what you like, make a profit, offset it against a loss, like Aquatics, then use those profits to subsidise the aquatics. I highlight these possible scenarios to show how vulnerable ratepayers are to these reorganisations.
Remember Max Bradford's assurances from the last National Government about how we were all going to be better off with electricity reforms? If you don't remember, it shows how easy it is for governments to get away with blue murder.

Privatisation problems
Tauranga will be high on the list for ‘reform' in the future. We have already shown we are capable of ‘reforming' ourselves with our ‘three waters' management (water, wastewater and stormwater) leading the country. In the 90s I was at a conference in Wellington when Richard Prebble and Roger Kerr were advocating privatisation of water supplies. I was opposing this tooth and nail, and was having a verbal sparring match with them from the floor. It brought the house down when Richard Prebble told me that under this scenario Tauranga would only need 12 workers to run our water plan and I was able to tell him that it would be a great leap forward seeing we were currently running it with six workers. This is what we could face in the future; theft of assets paid for by ratepayers and presently run on a cost only basis. Introduction of any other models, a la Auckland lays the way open for massive cost increases (director fees, tax, profit, cross subsidisation) and no direct political control. The promoters of course will say that councils can control it with Statements of Intent etc, to which I would respond, 'yeah right”, where monopoly essential services like three waters and roading are concerned. This is a different subject from any amalgamation of Bay of Plenty councils – it is very important we retain absolute control of monopoly infrastructure to prevent funding rorts.

Rates politicing
At full council, the draft annual plan budget resolution passed on eight votes to three. This is a draft only, seeking your comment via submission. The resolution includes a clause noting all elected members didn't support each issue, but supported the plan for purposes of public consultation. Put simply, it's a proposal and nothing is set in concrete. It's also required by law to be done within set timelines. It was therefore very surprising that three Pick 6 councillors voted against the proposal going out for purposes of public consultation and called for a division. Catherine Stewart in a short comment said, 'It was insulting, city debt is at its limit and I won't be supporting it.”
Obviously very surprised, Mayor Stuart Crosby replied, 'and a lack of understanding”. Murray Guy and Hayden Evans, also voting against, uncharacteristically didn't speak to their opposition. It's election year so of course this sort of thing goes on. By calling for a division as they did, each member's vote is recorded, thereby creating a paper trail proving that they opposed rate increases which makes great election mileage. Unfortunately the rates horse has well and truly bolted the stable as was acknowledged when the full council unanimously voted for the 10 year plan last year, which outlined rates increases of about 40 per cent over the next three years. Flood damage, soaring depreciation on revalued assets, debt reduction and Indoor Sports Centre for instance, all approved unanimously, now require funding as per the 10 year plan so it's a bit rich trying to back track now. Incidentally, of the $397.8 million public debt, $106.7m is funded internally by reserves. $100m is non rate funded. $15.1m impact free funded so whilst we're up there and finances need careful management, it's not out of control as some would have you believe.

A waste workout
At strategy and policy committee elected members heard about government's plans for ‘waste management and minimisation'. Once again it's all on council's with no implementation of ‘product stewardship' from central government. This is where government legislates for creators of packaging to take responsibility for it. For example, glass soft drink bottles used to be recycled by manufacturers then overnight they went to plastic, so every time you biff out a plastic soft drink bottle, one and a half or two litres of plastic and air gets exported at your council's cost to an expensive landfill. In the Bay, 95,000 tonnes of solid waste gets trucked to Hampton Downs (near Hamilton) each year and 43,000 tonnes gets diverted (mainly a successful composting operation). Ratepayers pay over $2 million through rates or $40 per household to fund the likes of abandoned vehicles, unpaid rubbish collection, loan payments on the transfer stations – all of this on top of your own rubbish collection costs. It's viewed as a cost of keeping the city clean.

Keeping safe
Wayne Moultrie drew Councils attention to lawlessness down at Papamoa Domain. Cretins congregating cause major problems so the Papamoa Domain will now be closed 10pm–6am. It's rule by anarchy, but what else do you do when police say they haven't resources to cope. Like the unsavoury incident where a good citizen got beaten up by a group of teenagers at Fergusson Park.
Hayden Evans eventually jumped from the joint road safety committee before he was pushed. His drink-driving conviction is only part of the story. The mayor had received complaints about Hayden's inappropriate behaviour at the committee which was causing major concerns. Bill Grainger stepped in as council's new representative on joint road safety.