Uncertainty as spending on 'reboot' suspended

Mayor Craig Little. Photo / Glenn Taylor

Spending on key projects in the planned "reboot" of Wairoa was suspended at an extraordinary meeting of Wairoa District Council on Friday night.

Mayor Craig Little and chief executive Fergus Power were disappointed with the decision.

"You can't rescind this document," Mr Little said, brandishing a copy of the council's annual plan.

"It's just not done."

Mr Power said afterwards that the effects of the decision were "potentially catastrophic" for Wairoa's transformation plans.

But councillor Chris Joblin said a functional review had shown the council was on "shaky ground" and some councillors wanted to put a hold on things "essentially for three months".

"We just want to put the handbrake on until we know where we are going," he said.

Seven projects, valued at $929,000 and approved in the annual plan process, have had their funding suspended until councillors have:

• Considered and determined actions related to the findings of a functional review of the council.

• Received the audited annual report for the year ending June 2014.

Received a financial report, including statement of position, for the first quarter of the current financial year.

Among the projects for which funding is suspended are Marine Parade public toilets and Whakamahi Beach enhancement, each estimated at $250,000, and provision of student computers, estimated at $9000.

The first two are cornerstone projects of the drive to transform the district, and the third is linked to planned internships under which overseas students would work with the council.

Also suspended, on the same terms, are items of unplanned capital and operations expenditure mentioned in a report to the meeting.

Mr Little tried to have the matter adjourned. The report was not distributed beforehand and councillors needed time to consider it, he said.

Deputy Mayor Denise Eaglesome-Karekare and Min Johansen also favoured an adjournment, but they were outnumbered.

Councillors Hine Flood, who presented the report, Chris Joblin, Benita Cairns and Mike Bird voted for the motion arising from the document.

At the monthly meeting on Tuesday, Benita Cairns had called for an extraordinary meeting of the council to discuss "the future of Wairoa".

Mr Little said he would enforce standing orders, and reminded councillors of time limits for speaking.

Ms Flood said the purpose of her report was to look at whether budgeted spending was appropriate in light of the functional review, which - at a budgeted cost of $40,000 - had identified "priority focus areas" that were being dealt with.

She noted that in the annual plan, the council approved spending on Whakamahi Beach enhancement, Marine Parade toilets, the i-Site refit ($40,000), future office accommodation ($250,000), office fit-out ($50,000), signage ($80,000) and student computers.

Since that process, the council had also spent on unplanned items, mainly in relation to matters raised in the functional review.

A human resources manager (at an estimated cost of $100,000), a new Tier 2 management role (the Maori relationships manager, cost unknown), ongoing governance/management workshops, continuing engagement of EquiP (the Local Government New Zealand "centre of excellence" for advice to councils), and the establishment of an audit/financial risk committee would have an unexpected impact on spending, she said.

"It must be acknowledged that the council, in its haste to get things done, has raced ahead focusing on investing in new projects before establishing its overall current position as identified in the functional review," she said.

Her recommendation became the motion, seconded by Mr Joblin and carried by the meeting.

Denise Eaglesome-Karekare said the aim of all the projects affected by the resolution was to move the community forward. Wairoa needed a boost.

Mike Bird said councillors had asked more than once about information on spending. "It hasn't been given to us, so I worry very much that we could be going in over our heads."

Mr Little said everything went through the annual plan; his door was always open, and the chief executive or finance manager could answer queries.

"I can assure the community that all finances are in order, but perhaps some clarification is required."

- Gisborne Herald