The Economic Situation and Wellington City Council in 2009

From: Bryan Pepperell
Sent: Saturday, 28 February 2009 6:54 p.m.
To: Kerry Prendergast; Councillors (Councillors); Garry Poole; Neil.cherry@wcc.govt.nz
Subject: [mailto:Bryan.Pepperell@wcc.govt.nz] THE ECONOMIC SITUATION AND AFFORDABILITY

In last months of 2008 I was giving this warning…

Some of you may be aware of the further deterioration in the global economy with the release of US employment statistics. You are also aware that we are very much connected as a global economy and that there are implications here in Wellington, New Zealand. I personally know of 25 people who lost their jobs in Wellington yesterday. In the last week many people have lost their jobs in Wellington. That will have a devastating effect with knock on effects in the lives of many people before Christmas has begun. As we continue to spend public money on big projects such as the Indoor Sports Centre we make the debt for the ratepayer more difficult to cope with, in particular those who are young as they struggle to keep their jobs and pay the increasing rates and rent burden. No matter how cheap money becomes to borrow, if you don’t have a job, borrowing is not an option.

Now I’m saying the situation is worsening…

From The Market Oracle /2009

“Never before in history have so many investors made decisions based on PHONY data and false headlines. Most in the alternative information arena are fully aware and have reported extensively on the POLITICALLY correct but practically incorrect economic data emanating from G7 governments. This is nothing but PR for public consumption as the real numbers would spawn RIOTS in the streets. So the public are NEVER told the true story as it is too horrible to acknowledge. The public is fed FALSE data.

GDP, inflation, employment, credit ratings, corporate profits, balance sheets and much more have been MANIPULATED to FOOL the vast MAJORITIES of the electorate that can read and write. But many of these same people are functionally illiterate of history, economics, common sense, logic and the critical thinking skills necessary to sift through the FALSE and misleading rhetoric of the mainstream media, public serpents, er … servants and school systems.”

The financial and economic crisis is spreading round the world and wealth destruction is historic. Wellington cannot withstand this financial and economic slump. Ratepayers do not and will not have the financial ability to pay for the expenditure of this council. We should act now and reduce the burden on the ratepayers before it is too late.

TELL US THE FULL COST OF THE INDOOR STADIUM / Writes Keith Flinders

Bryan,

For your blog.

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Why isn't the WCC telling us the rate payers the full costs of this indoor stadium, and trying to hide the truth.

The total cost will be upwards of $65 million, not the $46 million leaked to the press. This from a WCC councillor at the weekend. The cost of road works, land, and other costs apart from basic construction have not been included in the news reports for reasons which one might conclude to be deception.

The running costs will be $6 million per annum, not the $1.9 million Karen Wallace of the WCC told the the press 7 Feb. 2009. If the office of the CEO is unable to do basic sums and be out by a factor of 200 percent, should the ratepayers not be demanding changes there ? What else have they got wrong ?

Get rid of Poole, Wallace, plus one other and the shortfall in recycling costs will be covered.

The costs associated with this stadium project mean that every rateable household will be effectively paying $1,000 for this stadium, or subsidising every adult netball player who uses the new stadium about $1,000 per annum. Netball and other users are paying nothing towards the cost of the stadium nor for the use of it. Ratepayers on fixed incomes who can't afford to heat their homes to a healthy level, or purchase correct nourishment, will be levied on average another $150 per annum for a complex that only a fraction of the population will use.

One can cut back on power usage or food, but frustratingly one can't withhold rates.

Do WCC councillors not appreciate that we are in a recession, but regardless this is now a user pays society. No one subsidises my hobbies, and I don't expect anyone to. The same should be the case with all sport.

In the meantime the Events Centre, erected at a massive cost to the city, remains grossly under utilised. Various existing halls that can be used for indoor sports are also under utilised. Additional indoor courts could be housed in the old Winter Show building, or for a fraction of the price, in empty warehouses leased on very favourable terms. What is wrong with existing outdoor courts available for use 90% of the time even in winter.

Have councillors not looked at alternate options ? Obviously not.

A male city councillor, not Bryan, who phoned me at the weekend said HE THINKS that the contract for the construction has been let. He and the other councillors should know, not think. Perhaps I missed it but I have not seen the project advertised in the Tenders columns. How can a tender for $46 million be let without councillors having signed it off. Direct negotiation with a favoured contractor, if this is the case, gives rise for the thought that the process is open to bribery and corruption.

I wrote to every councillor and the mayor last week calling for the resignation of all who support this unaffordable stadium. I have asked for the Minister of Local Government to sack the entire council if the stadium goes ahead. The stadium is not core business.

Keith Flinders, Karori.

PUT THE INDOOR SPORTS CENTRE ON HOLD - Cr Pepperell

I have consistently warned that we face serious economic times over the last six years. Furthermore I’m of the belief that we are about to take a turn for the worse and that we must face affordability issues in a more urgent way. We are quickly moving into the worst recession in 100 years and are witnessing the complete unwinding of our financial and economic system.

Many economists are forecasting an L shaped recession. What is needed is a crisis approach in order that the citizens survive this difficult period.

I have been approached by many ratepayers who have bluntly stated that while the indoor sports centre is desirable such expenditure must be postponed. The burden of running the city at this time is about to become much more difficult for those who pay the bills. We are spending money that people just don’t have. I have no need to remind you of how much has been lost by the wealth destruction that has taken place. Incomes for many ratepayers have been slashed and investments lost. Living within our means couldn’t be more important at this time.

Over the weekend I attempted to travel to the eastern suburbs and was confronted with serious traffic congestion. The proposed Indoor sports centre will bring traffic to a standstill at peak times and make travelling to the airport and destination points extremely difficult. There will be calls for better roads to deal with the congestion. Even more expenditure will be required. Is that really what is wanted as the oil price begins to rise again?

Bryan Pepperell