Supercity has year to repay multi-million dollar debt

Auckland ratepayers will have only a year to repay the Government for Supercity set-up costs - budgeted at almost $35 million.

The body set up to manage the creation of the new council, the Auckland Transition Agency, has a self-set budget of $34.36m and has already spent $3.7m.

The process is being funded by Government but the cash will be repaid by the new Auckland-wide council on November 1 next year, 12 months after it starts operation.

The total budget includes almost $6m for elections in October and $7.7m for the agency's direct costs. More than $16m was set aside for professional services, such as consultants.

The figures were approved by the ministers of finance and local government.

Figures provided after an Official Information Act request showed the agency spent a total of $3,688,646 in its first seven months, including $1.48m for salaried staff and contractors and $1.14m on consultants. Staff have spent $35,290 on domestic travel.

The remaining money covered costs such as computing, finances, telecommunications, rent, recruitment and insurance.

Transition Agency chairman Mark Ford said while spending was under budget so far, there were no guarantees it would stay that way because the Supercity was a first for New Zealand.

A report written for the Royal Commission that looked into the Supercity estimated the changeover costs at between $120 million and $240 million over four years.

Ford said the agency was asked by the Government to set its own costs and defended the final figure.

"I think it's a lot of money, no hesitation, but I think it's value for money, and I defend the expenditure as being a lot less than original estimates."

The agency was formed last July and will cease to exist when the new council comes into effect on November 1.