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REGIONAL AMALGAMATION – SOME $ FIGURES AT LAST

November 12, 2012 November 2012 No Comments

The report commissioned by the three Wairarapa District councils has been released. In this report by local government experts Morrison Low estimated dollar amounts are at last made available to the public. The report is based on data supplied by Wairarapa District Councils and Wellington Regional Council.

Operational costs of both a proposed single Wairarapa district council and those of such a council taking on regional council responsibilities as well were estimated. The costs of the proposed Wairarapa councils were then compared with those for existing authorities with similar populations.

The report assumed the continuing same level of service as are currently delivered across the three Wairarapa and the Regional Council. Likewise current rating levels and forward policies were used.

Due to reduced governance and management costs amalgamating the three Wairarapa councils is estimated to achieve an initial operating surplus of $1.66 million.  Amalgamation should also bring other benefits such as greater bargaining power with goods and service suppliers, improved management and more unified decision-making across the region.

The study suggested that a Wairarapa Council which included the Greater Wellington Regional Council’s Wairarapa activities would result in an annual $8.6 million dollar operating deficit.

However the Regional Council’s figures showing considerably more being spent in Wairarapa than collected locally in rates are questioned. It appears that figures supplied by the Wellington Regional Council do not break down to district level and subsequently the Wairarapa Mayors question some of the Regional Council’s claimed local spending.

The report did not consider the third option, amalgamation as part of a Greater Wellington Council. However as there seems to be little enthusiasm for this proposal among some of the major city councils, which would have to be part of the proposal, there seems to be little likely hood of it going ahead, in the near term at least.

Nevertheless, local government laws are set to change by the end of this year – with rationalisation of councils in the greater Wellington region a government priority.

In a media release the three Wairarapa mayors wrote: “We don’t yet know what shape that will take but what we do know is that Wairarapa people want control over their own destiny, and to retain strong local representation and decision-making.

“Our three councils are now concentrating on what we can control – working on a single district council as a minimum that is achievable, affordable, manageable and makes sense.

“We absolutely recognise the need to be open-minded and work strategically on some issues with neighbouring councils on both our western and northern boundaries. However, it is unlikely to be as simple as becoming a Wairarapa district council and leaving regional functions to Greater Wellington when that possibility depends on reorganisation proposals that might be made by other councils.”

Over the next six weeks the governance review working party representing the three Wairarapa councils will continue discussions with Wellington councils on how they could work together and will consider the Wellington Review Panel’s report due at the end of this month. The working party will then present a final report with recommendations on a preferred option to its councils.
 
Some kind of amalgamation now seems all but inevitable. Having experienced being on a Wairarapa committee where the interests of the South Wairarapa and Carterton were blatantly ignored I am aware of how important it is to achieve a fair, balanced representation on any new body. Our members on the Review Working Party must emphasise that it is more than just about population numbers. South Wairarapa’s great area of productive land and coastal fisheries provide a lion’s share of Wairarapa’s produce. And it is the South which is the hub of the region’s tourist industry. These facts must be taken into consideration.

Mike Beckett

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