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Ed Said - 5.3 million steps forward

 

dadYes, it’s official and, to my mind, an important step forward.

While there was scant evidence of action since papers were filed in late 2014, there were obviously things happening behind the scenes or at least around the board table. The Auditor General’s office has agreed to a settlement with Kaipara District Council for a sum in excess of $5.3 million following it’s ‘failure to adequately perform its responsibilities’ in regards to the Mangawhai wastewater scheme.

I believe that this is something of a precedent though doubt that it will necessarily open the floodgates for other councils looking to blame some person or some body for their own poor management.

On one hand, given that the costs ran in the area of $30 million over budget, this settlement could be seen as small potatoes. On the other hand the two parties joined mediation conducted by a retired High Court judge and agreement was reached. No doubt there will be ongoing discussions in the street as to the pros and cons of the decision with some seeing the payout as an admission of guilt by the OAG but Its not hard to see some positives in this.

Without even bothering to sharpen my pencil I would imagine there is probably a saving to ratepayers of $1million-plus, were the matter to proceed to court. Furthermore, at the very least it is a defining point and while it’s certainly not the end of the story as the remaining amount is still to be serviced at least it is one page in the saga which can be turned.

Already some amusing comments have arisen like “so we’ll now get a drop in our rates?” plus suggestions of how it should be used or allocated.

We know a drop in rates will not be happening. We also know that, as Mangawhai grows, the wastewater system also needs to grow with it as does all the other infrastructure, especially that relating to traffic flow and control. From a Council point of view the delegation of money depends on priorities and priorities differ widely from east to west and from varying sectors of the community. If it were me, I would treat it like I never had it and take the $5m off the total debt. Rather simplistic I know, but that reduction, small as it may be, is an investment in itself.

While the rates saga must now work its way through the court process and towards conclusion I would like to think this settlement is but one small step, but still a forward step towards a more balanced Kaipara and one in which we can confidently put in the hands of a new Council come election time in October.

Just my opinion and I welcome your response.

Rob

info@mangawhaifocus.co.nz

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