Doubts remain over unitary plan

Wairarapa leaders are still unconvinced of the viability of a unitary authority for the area despite a report out yesterday backing the option.

The Wairarapa Governance Review Working Party commissioned the report by accountants MartinJenkins after public calls for more feedback on the party's preferred option.

The study includes an analysis of the potential impact on rates of losing the $8 million difference between the regional rates collected from Wairarapa residents and the Greater Wellington Regional Council's spending in the district, which is the so-called "Wairarapa subsidy".

The removal of unnecessary costs, increased dividends from the Port Company, the impact of the impending sale of forestry cutting rights initiated by the regional council, and other changes expected to result from a separate unitary authority for regional council functions, are projected to cut the subsidy from $8 million to $4.2 million.

"On top of this, the Wairarapa can reasonably anticipate efficiencies in the region of 3 per cent of its operating expenditure as a result of merging its three councils," the report says.

"When combined with the adjusted subsidy figure, we estimate that under a unitary Wairarapa council, the notional funding deficit sits at approximately $2 to $2.5 million over and above current long-term plan projections."

The report was presented to councillors and stakeholders yesterday at the Frank Cody Lounge, Masterton.

Bob Francis, of Wairarapa Development Group, was still unconvinced about the size and sustainability of a unitary authority. "There certainly will be some need to look at the figures."

Gary Caffell, of Masterton District Council, questioned whether a unitary authority would "pass the test" when it came to local government commissioned criteria. The consultants were confident it would.

Ray Stewart, of Sustainable Wairarapa, asked if it would be the only chance to comment on the report. "As a stakeholder, our members have been waiting to get all this before making a decision," he said.

Those at the meeting were concerned about funding for public transport, in particular trains, under the proposed structure, although the report says: "it is not an issue that is impacted one way or another by either of the two governance options".

It states any deficit that may arise can be managed by either a phased increase in rates over several years, or no additional increase in rates but a re-prioritising of existing plans, or by funding the deficit from debt to be repaid from the healthy forecast surpluses sitting in their current long-term plans.

The report also says a Wairarapa Local Board, as proposed under a Super-city administration, would only control 5 per cent of the budget.

It says the social and economic links between Wairarapa and the rest of the Wellington region do not provide a rationale for co-governance of the areas.

"There is a significant risk that under a Super-city option the voices of the 40,000-strong population of the Wairarapa will be drowned out by those of the 450,000 people in the Western Area," the report says, referring to the other councils in the region.

"This risk is all the greater given the values, preferences and lifestyles of the large metropolitan community of Wellington are likely to differ from those of the ... Wairarapa."

The working party is inviting public comment on the report and the Wairarapa councils meet next month to continue discussions.