Thursday, February 22, 2007
Good afternoon everyone. I'd like to thank your president, Tom Slinn, for the invitation and opportunity to speak to you today.
This is my third “State of the City” address to Grey Power. Meeting with Grey Power is an important, ongoing commitment that I look forward to every year.
Grey Power is a strong and effective advocate for the interests of older residents in our community and we appreciate the work that it does.
Being mayor of this wonderful city is indeed an honour and privilege. As I enter the final year of my first term, I wonder how it has gone by so fast.
Today I want reflect on the great things we’ve achieved and take a look at what the year ahead holds.
During the past two and a half years we have worked hard to put the city’s finances in order.
When I first spoke to you in 2005 as a newly elected mayor, I said we could keep rates at or just below the rate of inflation.
In retrospect, it was a bold claim considering the number of councils around the country whose rate increases have since outstripped inflation.
The latest figures from Statistics New Zealand found local body rates went up 11 percent between 2005/06.
Councils in some parts of the country hiked their rates by 12, 13, 14 percent and more.
This with seemingly little regard or consideration for the elderly and others on fixed or low incomes struggling to make ends meet.
I was horrified to hear one mayor suggest people should downsize their homes if they could not afford their city’s rates rise.
That’s arrogant and insulting, and I was pleased your Grey Power colleagues up north said so.
Councils living beyond their means combined with poor planning, leading to big rate increases, shouldn’t result in people being pushed out of their homes.
Hutt City has swum against the tide by bucking the national trend of big rate increases through sensible and prudent long-term planning.
For the past two years we have held rate rises below the rate of inflation – which, in real terms, is a rates reduction. This will continue this year and every year after that to 2016.
This has partly been achieved by keeping debt down.
Today the debt is $76 million. We plan to significantly reduce this. In fact, debt would be fully repaid by 2016, except that Council has budgeted $25 million in 2015-16 for additional infrastructure investment.
This will drastically reduce the millions per year we currently spend paying interest on debt. Just think what could be done with this money instead?
Reducing debt and cutting interest costs means we can invest more on infrastructure in the long-term and have the ability to fund unexpected big ticket items without ratepayers carrying the can.
I’m confident we are on the right track, with the latest economic data showing Hutt City’s economy continuing to perform well.
For the year ending March 2006 GDP grew by 4.4%, twice the national rate; jobs grew by 3.6%; the number of business increased 2.5%; productivity increased 0.8%, compared to a 1.3% decrease the previous year; and GDP per capita grew by 4.5%, compared to 1.2% nationally.
These figures reaffirm the growing strength of our economy, and our ongoing economic strategies. For it to continue, we must remain focused.
I should add that putting the finances on a sure footing has been achieved without cutting services. On the contrary, the quality of services has never been better.
This was recognised last year when the Council won the prestigious New Zealand Business Excellence Silver Award, only the second local authority to achieve that level of success in 15 years.
Nor have we neglected maintaining and improving infrastructure in the city.
In fact, we have invested millions more on infrastructure, like flood defences.
Living on the most densely populated floodplain in the country means people and property are in constant risk from flooding. The devastation caused by the floods of 2004 and 2005 were reminders of the threat we face.
One of my key election pledges in 2004 was to reduce the danger of flooding.
I’m proud to say I, along with my council colleagues, are delivering on that promise
Over the next 10 years we propose to invest $33 million to limit the effects of flooding - a 320 percent increase from that budgeted three years ago.
That includes projects at Waiwhetu, Opahu, Gracefield and Black Creek, where flooding has had the most effect. The city’s entire stormwater system is also being upgraded.
Complementing these projects is Greater Wellington regional council’s $78 million flood management plan.
But physical works like stopbanks and pumping stations are only part of the answer.
Last year we became the first council in the country to adopt Readynet, an online database that collects site details, maps and emergency contact information from schools, rest homes and other community groups for emergency services to access.
The service allows rescue and emergency services to arrive at a disaster site already prepared with all the information they need to know about it.
It can’t stop an emergency like flooding from occurring, but it can make the job of containing the emergency and rescuing people from it so much easier.
The most vulnerable in our city community, the elderly and children, will in particular be more secure with Readynet in place.
The distressing scenes we saw on television, in New Orleans, with people stranded in rest homes, because nobody knew they were there, would not have happened with such a service in place.
The past couple of years have been typified by positive progress and growth. So what does 2007 hold for the city?
Only a few days ago the New Dowse opened, one of the most exciting events in our city for many a year.
The Dowse has been transformed, with new gallery spaces on two levels, a new learning centre, a cafe & gallery shop and multi-purpose spaces available for functions.
It is now the most cutting edge art museum in the country, an important cultural asset for Hutt City and the Wellington region, and a major tourist attraction.
Positively resolving the Eastbourne issue will be high on the agenda.
I’m the first to put my hand up and say the relationship between Council and Eastbourne since amalgamation has often been less than satisfactory.
The breakaway bid presents an opportunity to discuss their grievances and begin the process of healing so that we can move forward as a city – together.
Safer communities remain a key focus of my mayoralty. Crime last year rose slightly, however it was the lowest increase in the Wellington region.
We will continue our war on graffiti and urge more action to be taken on boy racers flouting the law.
My regular meetings with the city’s police chief, Inspector Bruce Dunstan, give me great confidence the local police are doing an excellent job, despite being under-resourced and under pressure.
I make no apology for lobbying the Government hard for our fair share of the promised 1000 extra police promised under the Labour-New Zealand First confidence and supply agreement.
Gang-related drug crime, home invasions and domestic violence must be curbed - more police on the beat will help make our communities safer.
Last year saw the future of community boards put under the microscope by the Representation Review, which was carried out as required by the Local Electoral Act.
The consultation feedback we received from the review convinced me of the need to retain the existing community boards, as well as the need for community representation below council in other parts of the city.
Because of that, I instigated the
Review of Community and Council Support project to investigate how the council can better support community boards and those areas of the city that do not have them.
I look forward to recommendations from the review being released shortly.
Last week the Council hosted a ground-breaking workshop attended by over 200 residents designed to encourage greater community input in Council’s decision-making process, and therefore the future direction of the city.
I say ground-breaking because while popular overseas, I understand it was the first time a community participation workshop like it has been tried in New Zealand. We are leading the way, creating a new level of democracy with direct participation from ratepayers.
The workshop was the first step towards developing a closer relationship between the Council and the community it serves through increasing and improving the Council’s dialogue and engagement with the community.
I want to see more of this type of thing happening in our city, more opportunities for people to have their say on the direction of, and issues facing, the city. I want people to feel that their views and opinions are valued and taken into account when the Council makes decisions which affect them, their neighbours, and the City.
This year will see the rollout of a fibre network providing better, faster and cheaper internet broadband to businesses, community groups, tertiary providers and schools, thanks to a $2.7 million grant from the Government to Smartlinx3 which has fast tracked the project.
Broadband is critical if our economy is to remain competitive in an ever-increasing digital age. Without it, we would struggle to retain businesses or attract new ones.
Work on the Wellington Regional Strategy will continue. Generally-speaking, I think the strategy is positive for the region. It’s important to plan ahead and have a vision or goal for sustainable economic growth.
However, if the strategy finishes in not reducing each others costs, but instead loads another administrative layer on ratepayers then I am not for it.
Extra costs are a concern for areas like the Hutt Valley who are loath to support the concept if the costs of being part of it keep going up and up. We are working through this issue and I hope a resolution can be agreed.
There will be further progress on a transport network, with work on the Dowse-Petone interchange starting, and the council will advocate for safety improvements work on State Highway 2 and the upgrading of State Highway 58.
Elderly residents can look forward to the establishment of an Older Persons Advisory Group early this year.
The purpose of this group is to provide the council with liaison and feedback from elderly residents and to promote greater awareness and understanding of issues that concern them.
Late last year a similar group for people with disabilities was established by the council in partnership with the Upper Hutt City Council and the Hutt Valley DHB.
As well, the Council will run a number of events and activities catering towards elderly residents, with the ‘Get Going – Life begins at 50’ programme being but one.
The Council continues to support a number of elderly focused groups and organisations through its Community Development Funding programme. Those who have benefited in the past include Age Concern and the Capital Seniors Charitable Trust.
Of interest to you will be a remit I plan to take to the next Local Government New Zealand AGM calling for the Government to increase Rates Rebate levels.
Should it pass, as did two remits I proposed last year calling for tighter controls on fireworks sales and more funding on transport infrastructure, then Local Government New Zealand will
lobby the Government for changes which would significantly benefit thousands of elderly ratepayers.
On the topic of Rate Rebates, I urge those of you who haven’t applied but might be eligible to do so.
The Government estimates 4,720 ratepayers in Hutt City are eligible, but when I checked with our financial officer a couple of days ago only 2,113 had taken advantage of the scheme. The total value of these rebates was $955,000.
It’s not too late to apply – applications close at the end of June.
Recently I floated the idea of a new all-weather athletic track at Hutt Park, with the feedback being mostly positive.
It would provide the likes of Commonwealth Games champion and local hero, Nick Willis, first-class facilities for training and competition, and it would attract visitors to our city making it good for the economy.
There is much to do before the track becomes a reality, not least convincing my council colleagues of the merit of my proposal, followed by public consultation.
However I can only see it proceeding if we could attract significant outside investment, as I don’t want ratepayers having to foot most of the bill.
Before we know it, it will be Community Plan time again. This year will be steady as she goes, with a continued focus on strong financial management.
That might sound boring, but getting the fundamentals right is vital to the economic, social and cultural wellbeing of the city.
I strongly urge you as individuals and as an organisation to make a submission when the Draft Community Plan is released for public consultation, because I believe it’s important for residents to have their say about the future direction of our city.
And, of course, this year is the council elections. I hope people see fit to re-elect me so I can continue the progress we have made during the triennium.
As I conclude the final “State of the City” address of my first term, I again have to tell you what an honour it is for me to have this job.
I’m feeling very positive about the city’s future, we have a lot of things going on which make our city a great place to live, work and play – or as our billboards say, “The place where you can have your Pavlova and eat it too!
Thank you once again for inviting me to speak with you.