Council “savings” questioned

By Laura Kvigstad, Auckland

Auckland Council’s latest performance report shows savings of $95.7 million, exceeding the annual $90 million target. Of the total, $61.5 million was from ongoing cost reductions, while $34.2 million was from one-off expenditure reductions such as project delays. The performance report said the target “was exceeded due to a strong focus on cost reduction in the current financial circumstances”, but Councillor Christine Fletcher wasn’t buying it.

“I realise that it is a difficult time, a transitional time and the way council staff presented today is quite clear, except on one point – the way that we characterise project delays as somehow contributing to our savings targets,” Fletcher said.

Fletcher raised the same issue last year and said that while it may seem pedantic, she was concerned that the way savings were presented, distorted council’s financial position to the public.

She asked why delays were used to meet the saving’s target.

Financial and business performance general manager Nicola Mills said project delays resulted in one-off savings.