Labour Commission do own costing of Super City

Frustrated by the Government's refusal to say how much it would cost to implement and run the proposed Auckland super council, the Labour Party commissioned an economist to do the work.

It found each of Auckland's ratepayers would have to pay $750 in implementation costs and as many as 817 people would lose their jobs.

However, on an annual basis the Government's proposal would cost less than what was proposed by the Royal Commission.

Labour MP Phil Twyford said it approached party member Rhema Vaithianathan, who sought to stand in Mt Albert, to do the costing work.

The Auckland University public economics lecturer used the Royal Commission's modelling on costs and adapted it to include the Government's changes.

"Dr Vaithianathan estimates the transition costs of the Government's plan will cost ratepayers between $574 and $753 each - with the lowest projected increase 34 per cent more than the Royal Commission's model," Mr Twyford said.

Job losses would range from 539 to 817 as a result of the merger - the lowest projected increase was 57 per cent higher than under the Royal Commission model.

Mr Twyford said the Government should say what its costings are.

He said by centralising functions the government model would be cheaper on an annual basis but offered the least level of local influence.

"It is denying Aucklanders not only the right to a referendum and the right to proper consultation based on the full story - it is selling them a second-class structure, which removes the local from local democracy and the cost of that is immeasurable," Mr Twyford said.

In Parliament when asked about costing on uniting the various Auckland councils into one structure, ACT Local Government Minister Rodney Hide said they would be "minuscule" next to the $2 billion cost of the current councils and there were bound to be savings because there would be fewer mayors and councillors.

- NZPA