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23/05/2012

How would you tackle debt?

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Quizzing the candidates in mayoral race

QLDC has a Debt Crisis. The Auditor-General tells Parliament our 10-year plan is “financially unsustainable”. 

QLDC owes $100m – $3571 for every resident – and debt is set to climb to $400m by 2019. What are you gonna do about it, mayoral candidates?

How would you tackle Queenstown Lakes’ huge debt problem?

     
Simon Hayes:
I’m delighted to hear from some current councillors and the mayor that a vigorous review of the council 10-year plan has commenced and significant reductions already identified. This begs the question about the scope of the original drafting of the plan. We must endeavour to establish clear goals for the district and match that vision with realistic and financially-prudent options. Some ‘wishlist’ items shall need to be omitted or deferred until our financial position is more soundly based. Council should endeavour to enunciate realistic goals and not unrealistically raise expectations.
Michael Scott:
Council has already deferred non-essential capital works knowing that the level of debt is unsustainable.  We must however continue with essential work e.g. water treatment and wastewater to satisfy our obligations to Central Government.  We simply need to follow the guidelines set in our 10-year community plan and work with the community to decide what needs to take priority and find alternative funding solutions. It’s time to tighten belts and justify every dollar spent.  Central Government agencies have to do this on a daily basis, our council needs to do the same.
Vanessa van Uden:
There needs to be a two-pronged attack to solve the problem. First we need to cut costs while retaining the very best service we can realistically provide and my local thinktank is a step in the direction of cutting out our massive consultant bills – one task to simplify the process for getting work done. We also need to reinstate competitive tendering of council contracts as soon as possible.  Secondly, we need to investigate alternative means of generating income to reduce the burden of debt on current and future generations – another task for a thinktank of local experts and council.

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