Councillor Challenges Spending as Otago Rates Soar

Otago Regional Councillor Michael Laws has raised concerns over rising expenditure within the region, advocating for significant changes to staffing and budget allocations. Collaborating with fellow councillors and potential candidates such as Gary Kelliher and Nicky Rhodes, Laws aims to establish a unified agenda through their group, Vision Otago.

One of the primary issues highlighted by the group is the perceived excess of staff across the Otago Regional Council (ORC). Laws argues that the current staffing levels are unnecessary and have contributed to substantial rate increases over the years. In June 2023, the Queenstown Lakes District Council approved rate hikes that surpassed the projections outlined in the 2024-34 long-term plan. Homeowners in Wānaka faced a median residential rate increase of 18.7%, while Luggate, Hāwea, and Queenstown experienced increases of 17.6%, 15.3%, and 13.2%, respectively.

Laws pointed out that, unlike the Queenstown Lakes District Council, the ORC has limited responsibilities regarding infrastructure. He contended that the council’s spending on new personnel is excessive. “The Otago Regional Council has very little infrastructure at all,” he stated, adding, “most of the rate increase is connected to more than doubling the staff over the last six years… It’s completely unsustainable.”

He specifically criticized the communications department for employing thirteen staff members, labeling this as unnecessary. An ORC spokesperson confirmed that the budget for full-time equivalent (FTE) staff for the 2023-24 financial year was approximately 352, increasing to 359 by the end of the year.

Despite the increase in personnel and rates, Laws expressed disappointment over the lack of improvement in services for Otago’s smaller regions. “Have you seen any improvement in council services? Have you seen any less rabbits, any less pests? Have you seen any cleaner water?” he questioned.

The ORC’s latest annual plan estimates the total cost of council operations for the year at $140.63 million, allocating 33% to transport, 24% to environmental work, and 23% to regional leadership. The council’s activities in Wānaka include monitoring land, air, and water quality across Lake Wānaka, Lake Hawea, and surrounding waterways.

As part of their shared policies, Vision Otago aims to reduce rates by ensuring staffing levels are appropriate for the council’s needs. This could involve attrition or voluntary redundancy. They also propose discontinuing automatic 5% annual salary increases and optimizing the ORC-owned Port of Otago balance sheet to support significant environmental projects.

ORC Chief Executive Richard Saunders remarked that the current year’s rate increase is smaller than initially anticipated. The average ORC rate increase forecasted for this financial year was 13.8%, but it has since been adjusted to 5.5%. He noted that the reduction was due to cuts in planned public transport upgrades, a reprioritization of environmental funding, and decreased inflation costs.

As the debate around council spending and rate increases continues, the actions of the Otago Regional Council and the proposals from Vision Otago will likely play a crucial role in shaping the region’s financial future and service delivery.