That classic British sitcom, “Yes Minister”, has brought humour into all of our homes and what a time the skilled bureaucrat gave his hapless Minister. Even the fabled “Iron Lady”, Margaret Thatcher considered the programme to give real insights into the inner workings of the public service.
In 2013, under the previous Council, PCC commissioned a financial effectiveness and efficiency review of its operations, led by an independent Accounting firm. With a view to minimising costs, PCC seconded a number of its bright young employees to the Review Team.
PCC were astonished that the Review identified efficiency savings of about $6 million per annum could be achieved by modernising policies, procedures and practices. Ratepayers would have been delighted, but not so PCC. The recommendations of this Review were suppressed to the public, remain largely unimplemented and all of the bright young employees associated with this Review are now gone. Sir Humphrey would be proud.
Our new Council were briefed about the Independent Report and rightly asked appropriate questions. The Porirua Economic Development Group (PEDG) also sought information under Freedom of Information legislation.
The outcome was a presentation to Councillors by PCC Officers. PEDG witnessed the same presentation at a later date. Officers, utilising a confidential Australasian study, endeavoured to show that in many areas, PCC were clearly competitive if not under-funded, stating that “PCC is a relatively efficient council compared to peers (Council’s of similar size and/or location)” The notable exception was in the area of Sport and Leisure, where PCC spends almost three times that of other Councils.
The presentation confirmed what the newly elected Councillors wanted to hear: PCC was financially effectively and efficiently run. There were no major financial risks or exposures, thereby providing the “green light” to spend as desired.
PEDG was less easily satisfied, seeking more information about the benchmarking which appeared to be “too good to be true”! Sadly the study was so sensitive and confidential, that no disclosure could be made of participating bodies (apparently from both sides of the Tasman) nor could the document be scrutinised! Hackles were rising and suspicions aroused with the thought that perhaps “like was not being compared with like”!
The Ratepayers Union and Auckland Ratepayers Alliance have since published the 2017 comparative Review of all New Zealand Councils. The data has been drawn from publicly available sources, such as audited Annual Reports and answers to questions raised under Freedom of Information legislation.
PCC does not fare well. Compared with its immediate neighbours (Wellington City, Hutt City, Upper Hutt City and Kapiti Coast) the average residential Rates are the highest and 12.25% greater than the average. When compared with other urban based Councils with similar populations, PCC is a staggering 20% higher than the average.
This raises doubts over the appropriateness and efficacy of the financial briefing provided to Councillors and suggests that PCC is neither financially effective nor efficient. It poses the question: have our Councillors been misled?
The law specifies effective and efficient financial management. It is up to Councillors to ensure that this is applied through the forthcoming Budget and Long-Term Planning Process. The Ratepayers Union report makes transparent a lack of PCC financial competitiveness and the 2013 Independent Review foreshadows the potential for significant Rates Reductions.
It is time for Councillors to hold Sir Humphrey and his mates to account, to ensure that the current excesses are eliminated and to clearly act in the best interests of the Ratepayers whose interests they have been elected to represent.
Andrew Weeks (For PEDG)