2 mins to read

Vic Crone promises deep spending cuts for 'bloated' Auckland Council

Four key council areas Vic Crone wants to fix.

Sally Lindsay
Tue, 26 Apr 2016

See also: Crone's council spending cuts not enough – Ratepayers Alliance

Auckland mayoral aspirant Victoria Crone is promising big savings if she is voted into the top job.

Ms Crone has announced what she calls “fiscally responsible commitments lifting council performance in four areas: keeping residential rates low; cutting waste; reducing staff costs; and controlling debt."

The former Xero New Zealand managing director says as a start she will reduce staff costs by 5-10% over the next three years and cap staff numbers at existing levels, saving up to $80 million.

“It’s concerning that every year for the past three years the council has exceeded its staff budget by more than $50 million."

Ms Crone says she will cap average residential rates increases at 2% every year for the next three years, deliver at least $500 million in savings with a focus on reducing back-office waste and lead a line-item review of council spending.

“If the council isn’t being cost-effective, timely and smart with its spending, it’s downright outrageous to expect more from ratepayers.”

She says any additional operating surpluses will be prioritised toward paying down debt faster than forecast.

“I understand even with minor changes in interest rates, the council could breach the 12% interest payments to revenue cap under its current debt management strategy. I’ll ensure the council is repaying debt above the current plan target and will impose a review of this strategy to better protect Auckland’s interests,” Ms Crone says.

“The council can be a high-performing organisation that delivers real results for ratepayers and is ahead of the game and to get there and it starts by getting the basics in order.”

Follow NBR on Facebook, Twitter, LinkedIn and Instagram for the latest news and free on-demand audio from NBR Radio.

Sally Lindsay
Tue, 26 Apr 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Vic Crone promises deep spending cuts for 'bloated' Auckland Council