Hefty price for breakaway move

Consultants have crunched the numbers for the two preferred options for local council reform, and found a unitary authority could face a shortfall of more than $8 million a year.

Wairarapa's three mayors say their focus is now on a single district council for the region.

A report released yesterday by Morrison Low includes financial analysis of two governance options. The "Phase Three" report compares operational revenue and expenditure for a Wairarapa unitary authority - a combined district and regional council - and a Wairarapa district council.

The report showed the unitary authority would have a net shortfall of $10.9 million in the first year. This could reduce to $8.6 million, taking into account savings from amalgamating the district council functions.

Under the second option, a combined Wairarapa district council would achieve an initial operating surplus of $1.6 million because of smaller governance and management costs.

Wairarapa mayors Garry Daniell, Adrienne Staples and Ron Mark said the report raised questions about why so much more was spent on some regional council activities in Wairarapa and what were appropriate levels of service.

"What is certain is that there is uncertainty - especially new funding and rating policies that future councils may put in place. As in Auckland, everything will be up for review," they said.

"Our three councils are now concentrating on what we can control, working on a single district council as a minimum that is achievable, affordable and manageable and makes sense."