Super City 'will hurt towns' badly

Small towns around New Zealand may be the unwitting victims in Auckland's Super City plans. Photo / Brett Phibbs

Millions of dollars will be sucked out of towns like Papakura from a centralised Super City buying goods and services in bulk instead of locally, says Papakura Mayor Calum Penrose.

The new Auckland Council might claim financial efficiencies buying from large suppliers, he said, "but they are hitting communities where it hurts most, and right in the middle of a recession".

"Our many local contractors and suppliers stand to lose the income generated by having a local council buying goods and services locally. The Super City is not going to buy printing from 10 or 15 smaller suppliers across the region. Why would they?"

Combined purchasing of goods and services has been put forward as one of the efficiencies for abolishing the region's eight councils and replacing them with a single Auckland Council and 20 to 30 local boards.

Although the local boards will be given flexibility to shape their communities, the Auckland Council is expected to call the shots when it comes to buying goods and services.

The Auckland Transition Agency, the body designing Auckland's Super City, has directed councils to combine purchases of goods and services during the transition period.

Mr Penrose said the council bought a diverse range of services and products locally, from printed material, event materials, sounds and lighting services to fuel and vehicle servicing.

A local company had the main infrastructure maintenance contract and local contractors contributed to an upgrade of the town centre. What's more, council staff shopped locally in the district of 47,000 people.

"I believe the loss of millions of dollars of spending within this community will have a severe impact on some of our suppliers," Mr Penrose said.

"We have advised all our contractors what we believe will be happening late next year [when the Super City comes into being]."

Franklin Mayor Mark Ball said his council, based in Pukekohe, 50km south of downtown Auckland, used local businesses wherever possible for small projects, such as road repairs and printing. There would be some impact from centralising the purchase of goods and services.