Editorial: Debt review a must

The residents of Rotorua deserve a system they can trust. Rotorua Mayor Steve Chadwick announced an independent review. Photo / Steven Parker

They say a week is a long time in politics.

Just six days ago, the Rotorua Daily Post reported the Rotorua District Council's debt situation meant we would need 3 per cent annual rates rises until at least 2030, and major city projects deferred.

Readers responded in force, many furious that things were allowed to get this bad.

Some councillors told us they weren't aware of the extent of the debt crisis, but former chief executive Peter Guerin said he did not believe they were completely unaware.

Then, late yesterday afternoon, Mayor Steve Chadwick announced an independent review of the council's financial disclosures.

Mrs Chadwick said the brief would be to investigate the "adequacy of past financial disclosures made to elected members, and those made to the public during long-term plan and annual plan processes".

She wants to know that councillors over the past two years had access to all the financial information they needed for making sound strategic financial decisions, and whether residents had access to enough information during annual planning processes.

It's heartening to see the council respond to public pressure with swift action on an issue that means so much to locals. We've had a huge amount of feedback, no doubt the council has too.

It would be too easy to carry on, promising to take better care in future. But somewhere, somehow, someone dropped the ball.

The residents of Rotorua deserve a system they can trust, and with the reputations of councillors and staff at stake, this review couldn't come sooner. Yes it will cost us, but so will systemic failures.