Council merger costs refuted

A group of Western Bay of Plenty residents are determined the Western Bay be governed by one council chief executive by 2016, despite the district council announcing a new chief executive.

The group, including leading businesspeople, plan to make an application to the Local Government Commission to amalgamate the Tauranga City Council and the Western Bay of Plenty District Council within two months.

Bay of Plenty Regional councillor Doug Owens says amalgamation will come at a cost to ratepayers.

Group spokesperson and Carrus Corporation managing director Paul Adams remains confident the application for a unitary authority is the right move.

He says the WBOPDC's announcement of Miriam Taris as its new chief executive on Thursday shows existing politicians are in no hurry to amalgamate.

'The amalgamation has to happen. If councils aren't prepared to move on it themselves then the ratepayers have to do something about it.”

Last week Paul said having two sets of council costs and rules that are not always in-sync is holding back the region's prosperity and future.

Instead, he believes having a unified council will lead to cost savings and alignment of services, rules and regulations, and operational management.

'This is a real win-win for all ratepayers and businesses, who want to see the Western Bay grow and develop into a vibrant community,” says Paul.

But Bay of Plenty Regional councillor Doug Owens is against the move saying it will actually come at a cost of billions of dollars to the ratepayers.

Doug is not surprised that 'frustrated” members of the public want to spur councils into action, but is warning the group to not let self-interest get in the way of what is the best for the Bay.

'Form follows function and it is the functions of local government that must be considered thoroughly before any change is triggered,” says Doug.

'There is no point simply replacing one organisation with another, at significant cost to ratepayers, until this aspect is sorted out first.”

In order for amalgamation to be considered both councils need to look at a regional information technology management system, creating a one consent door for developers, says Doug.

And he adds there should be no tolerance for short-sighted ideas promoting "cherry picking" growth in Tauranga and the Western Bay, potentially leaving the rest of the Bay of Plenty to "wallow in a dismal demographic".

Paul refutes the ratepayer's costs, saying there is widespread support from ratepayers and the business community with the group continuing to build its resources for a strong application.

Local Government Commission advisor Robert Harris confirms an application can be made by any member of the public, body or group in what is a 'fairly logical” structure.

He says an application must explain what the proposed changes are seeking to achieve, and how they will be achieved by the prosed approach.

It must also include a description of potential improvements from the proposal along with information demonstrating community support including a petition.

10 comments

They'll need to fight patch protection

Posted on 16-05-2014 16:22 | By Annalist

I think lots of councillors and maybe staff and contractors will be against any amalgamation. Perhaps they will want to protect their positions and salaries and contracts. Then there's all those Port shares the Regional Council own. If run properly and amalgamated Council for the whole region should save millions of dollars. But that's my only fear, that it will simply be a bigger bureaucracy. If big savings can be 100% guaranteed then I think amalgamation is worth considering.


NO THANK YOU

Posted on 16-05-2014 18:16 | By tabatha

To the team of business men, I presume men, no thank, look at the mess Auckland is in, and I do not mean Len Browns antics, but cost lack of true consultation, these business people see it as a means to expand their boundaries with one council instead of is it three. Who absorbs what debts and problems. Personally it needs to be voted on and the results binding.


Correction Paul

Posted on 16-05-2014 20:00 | By Murray.Guy

Last week Paul said having two sets of council costs and rules that are not always in-sync is holding back the region's prosperity and future.... I think you've been misquoted Paul. You meant to say, or said, "holding back your prosperity". Hopefully enough residents will recognise the further erosion of meaningful democracy and the wealth distribution gap getting wider! To go direct to the LGC in the absence of ANY community consultation, any clear understanding of the issues and outcomes, other than wealth creation, is not very nice from where I'm sitting!


Let's have the whole truth

Posted on 16-05-2014 20:49 | By nerak

Why does the amalgamation have to happen, Mr Adams? Do you really think the ratepayers are interested in deepening the pockets of developers? I don't believe the whole truth is in this article, and heed the warning from Mr Owens re self interest getting in the way.


Get the evidence

Posted on 17-05-2014 07:15 | By IanM

The experiment is running, in Auckland, Northland, Hawke Bay and more. Why not evaluate those experiments before doing the same here as a kneejerk reaction. It is particularly concerning that the amalgamation initiative is being led by a developer whose current success is due to a $60 million subsidy from the Bank of Scotland - the original financier of the Lakes Developers.


It may hold back the prosperity of would be councillors

Posted on 17-05-2014 11:39 | By Councillorwatch

Hopefully enough residents will see its worth a proper look rather than outright dismissal, possibly based on self interest. After all amalgamation would mean less CEOs, hopefully less councillors and less staff. Their chances of wealth creation might be reduced. Would be councillors including those bitter at not being re-elected might not want amalgamation.


Paul who Murray?

Posted on 17-05-2014 14:24 | By Paul Melhuish

Paul who Murray? I comment on here on occasion as Paul but it I didn't make those remarks last week. In fact i am not sure where on this site those comments feature at all? Were they somewhere else?


Paul Melhuish, my comment

Posted on 17-05-2014 18:36 | By Murray.Guy

Paul Melhuish, my comments are a direct quote from the article above, in reference to Paul Adams. Local authority amalgamations, such as that proposed, does NOT mean staff reductions and savings, and while one CEO may replace two, the incoming will enjoy much higher salary with additional senior managers required. The amalgamation of the two CCO's at Tauranga City Council resulted in reduced board members but remuneration costs trebled! Staff remunerations costs have increased significantly! Be aware that while this initial push is for the Western BOP Council and TCC to amalgamate, evidence suggests that this is NOT their ultimate goal, being where the gold is at, The BOP Regional Council and Port of Tauranga shares!


Good councillors could make it work

Posted on 18-05-2014 12:39 | By Councillorwatch

The key to amalgamation being successful and actually saving money would be to elect talented councillors. There would be no excuse to not reduce costs in that case. The bureaucratic Regional Council should be included. I believe the shares in the Port of Tauranga were taken from under the noses of Tauranga ratepayers and given to a regional council that uses the proceeds to pay for stuff as far away as Opotiki. Remember, it's the Port of TAURANGA and its positive and negative effects are felt in Tauranga. Tauranga rate and tax payers should demand the Port shares be vested in the city, not a regional bureaucracy. Look carefully at the motives of those who oppose even considering this proposal. I'm skeptical of it too, but with the right councillors it could be done.


Nice reply Murray....

Posted on 18-05-2014 17:20 | By Paul Melhuish

and I agree on the most part but the point I was making is it is helpful to reference someone specifically using their full name and where you are quoting them from (-; Cheers.


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