Auckland Mayor Phil Goff has hit back at Opposition Leader Simon Bridges’ claims the country’s biggest council “lacks fiscal discipline.”
Transport Minister Phil Twyford has also rebuffed the claims, saying Bridges' comments were “hilarious from someone who left a $9.7 billion fiscal hole in his transport plan.”
Bridges has dismissed the accusation as “pure spin.”
In his first economic speech as National Leader on Monday, Bridges said if the Auckland Council better managed its books, there would be no need for any new fuel taxes.
“Over the last four years, the Council has spent an additional $800 million – $160 million of that is in wages. To me, that is a lack of discipline.”
But, in a detailed response, Goff takes issue with Bridges' comments on the Council’s wage bill.
“While our population has grown by 15% since amalgamation, staffing numbers have risen by less than 0.5% compared to that of the legacy councils. Per capita staffing ratios have fallen.”
He says the Council’s core operating costs over the last few years has risen by around 1.3% – less than the rate of inflation.
“What has risen is the level of infrastructure investment as Auckland has grown faster than most other global cities. That has meant borrowing to build transport and housing assets and to meet the costs of interest and depreciation on that borrowing.”
Auckland Council's acting chief financial officer Matthew Walker says roughly half of the $800 million, cited by Bridges, stems from increases in depreciation and financial costs, due in part to investment in new assets and the cost of servicing debt.
The rest is borne across the rest of the Council, including funding for Auckland Transport, the Port and Watercare operations.
Following Bridges speech on Monday morning, Twyford was forced onto the defensive, issuing a press release just hours after his comments calling him “hopelessly confused.”
Bridges has promised to repeal Auckland’s fuel tax, saying the cost of meeting Auckland’s infrastructure needs can be covered by Government surpluses, existing fuel exercise taxes and a crackdown in “wrong [council] spending.”
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