Auckland mayoral race: Council finance chairman refuses to back John Tamihere's rates freeze

Monday, 26 August 2019

Meet the Candidate: John Tamihere.

Auckland Council's finance committee head has picked a number of holes in mayoral contender John Tamihere's controversial plan to freeze rates if elected.

Committee chairman Ross Clow says he would not vote for Tamihere's proposal to freeze rates for three years.

The move would see Auckland Council forgo revenue of $260 million, though Stuff's calculations suggest the real impact could be up to $80m less.

Auckland mayoral hopeful John Tamihere wants to freeze rates for three years.

Monday's policy bombshell, announced in a press release sent by Tamihere's campaign team, came with a note – check with Clow, or his deputy Desley Simpson, to see if the rates freeze is possible.

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Auckland Council finance committee chairman Ross Clow says central Government will not pitch in if its sees the council closing off revenue streams.

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Auckland Council's financial strategy and planning general manager Ross Tucker said freezing rates would require full public consultation and a council vote.

Stuff then approached Clow, who called the called the policy 'bold', before saying that Tamihere's pledge worried him.

The loss of three years' worth of rates could have a cumulative impact, Clow said, leading to an eventual spending blowout.

Freezing rates could also mean re-prioritising and delaying projects.

'I'm Labour and I'm supporting the present mayor,' Clow said.

'I'd still work for him [Tamihere], but I probably wouldn't vote for this.'

Clow pointed out Tamihere's policies seemed to be predicated on greater central Government funding.

However, the Government would not look kindly upon Auckland Council if it came hat in hand while cutting revenue streams at its end, Clow said.

The council borrowed based on its revenue, he added, and slashing it would see Auckland Council struggle to borrow what it wanted.

CUTS NEED STAFF AGREEMENT

Tamihere has claimed an additional 1 per cent spend cut across the council and its agencies would balance out the revenue drop on the back of a rates freeze.

The mayoral hopeful pointed to the number of council and agency executives earning more than $200,000 a year as one area for cuts.

However, Tamihere would not have the power to enforce pay cuts.

'Any change to terms and conditions of an existing employee would need to be by agreement with that employee,' head of employment relations Andre Lubbe told Stuff.

'The employment of staff, and negotiation of the terms of this employment, is the responsibility of the chief executive.

'This is undertaken in line with the remuneration policy and all relevant employment laws.'

Clow added the council had already found $500 million-worth of savings during reviews of services provided by the council and its agencies, such as Watercare and Auckland Transport.

The reviews were being conducted under section 17A of the Local Government Act. The council's last budget aimed to look for further savings, which had been programmed into its most recent ten-year plan.