ARC chief spurns $40,000 work car

The new chairman of a council that faced a "rates revolt" has turned down the offer of a $40,000 car with the job, saying it would clash with his promise to work for budget cuts.

Auckland Regional Council boss Mike Lee is entitled to a council-paid vehicle for business purposes. The council offered to buy him a new car as part of its fleet maintenance programme.

Mr Lee said he had made a personal decision to show he took his promise on budgets seriously.

"I've been calling for council staff to make economies. It's a case of leading by example."

He will use his own car on council business, saving the council $40,000 in capital spending and nearly $18,000 in operating costs in the 2005-2006 budget.

Mr Lee said the council faced escalating costs for public transport on one hand and increased sensitivity from the public about high rates demands on the other. He said councillors were mindful of public concerns.

The previous chief, Gwen Bull, lost her Manukau seat after a rates hike of up to 600 per cent for some properties in 2003.

As a member of that council, Mr Lee had a base salary of $20,000 a year. In his new role, the salary is $133,735.

Chairmen using a work car usually have 20 per cent of the value of the car deducted from the salary, said council secretariat director Dr Ewen Hutchinson.

Mr Lee and councillors are entitled to the official mileage allowance for work travel. But often they car-pool with officers if they have council business out of the city.

The ferry service to Mr Lee's home on Waiheke Island is not subsidised by the regional council.