Pacific Waves for 12 July 2025
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RNZ News
10 minutes ago
- RNZ News
New Plymouth rates blunder caused by lack of financial reporting knowledge
New Plymouth District Council chief executive Gareth Green concedes an earlier restructure played a part in the error. Photo: Taupō District Council / Supplied An external review following a New Plymouth District Council rates GST blunder - which could've cost it $20 million in lost revenue - indicates key managers may not have a sufficiently sophisticated understanding of the rating process and its impacts. The Simpson Grierson review found the council lacked financial reporting and modelling capability which "strongly suggests a need for training, and possibly recruitment/restructure and training". Council chief executive Gareth Green conceded an earlier restructure - which saved the district council $10 million - played a part in the error. "That necessitated some significant pressure being applied through the business. "I think that pressure along with other pressure points in the local government sector has contributed to this [mistake] occurring, so certainly the pressure that restructure has applied has had an impact, most definitely." He was instigating another restructure designed to bring more financial and local government experience to council staff. Green said this would result in a "small number of job losses" due to new positions being created. He wasn't thinking about falling on his sword. "I do take full responsibility for this, but I am not tendering my resignation at the current time. "My total focus at this point is leading this organisation through this situation and making sure we can resolve it in the best possible way." The Simpson Grierson review also uncovered two further bungles . It revealed the council hiked average residential rates 12.8 percent rather than 9.9 percent as advertised. The gaffe equated to $102 per ratepayer or $3.1 million. The review also identified an annual plan wording error relating to industrial water use which could've cost council a further $1.4 million in lost revenue. In his report, consultant Jonathan Salter said sophisticated knowledge and understanding of the rating process and rating impacts tended to be the domain of specialist officers with a long-standing understanding of the rating function. These staff were usually intimately familiar with the council's financial reporting and modelling systems, the valuation and rating information database and the district itself, he said. "There appears to have been a lack of capability in these two areas. This strongly suggests a need for training, and possibly recruitment/restructure and training." New Plymouth Mayor Neil Holdom. Photo: RNZ / Robin Martin Mayor Neil Holdom said one reason why he called for an independent review when the GST error was discovered was so council could learn from its mistakes. "I just want to make it clear the councillors - the governance team - made decisions based on information that was incorrect. "Our long-term plan was audited by Audit NZ and they also didn't pick up this error in our rating calculation model." Holdom said the proposed restructure would bolster the financial capability and bring people onboard council with local government experience. The Simpson Grierson report also recommended an independent legal review be a component of the annual rate setting process, and that council not rely on the Audit NZ review alone. Holdom said an extra-ordinary meeting on 22 July would consider a proposal for future annual-plan and long-term plan calculations to be externally peer reviewed as part of a parcel of steps to address the recent errors. Salter also wanted the council to review how it handled documents. "It appears that document management may have been an issue ... the restricted water supply targeted rate issue appears to have arisen from an incorrect 'cut and paste' from another document." Holdom earlier described the GST blunder as a "typo" and a "cut and paste" error. The Simpson Grierson consultant also thought council should consider moving away from an average residential rates model to an overall rates model. "This would be a more transparent and certain disclosure. If there is reference to the 'average' rather than 'overall' rates increase, this concept should be defined." At the extraordinary council meeting on 22 July, the mayor would recommend councillors approve a one-off rates refund to all residential property owners to ensure the average residential rates increase equalled 9.9 percent. That would require council to find $3.1 million in savings elsewhere. Councillors would also vote on amending the rates resolution wording regarding properties on a restricted water flow - usually industrial users - to ensure council was able to charge $418 for each cubic metre of water as intended. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
40 minutes ago
- RNZ News
New Plymouth District Council rates blunder caused by lack of financial reporting knowledge
New Plymouth District Council chief executive Gareth Green concedes an earlier restructure played a part in the error. Photo: Taupō District Council / Supplied An external review following a New Plymouth District Council rates GST blunder - which could've cost it $20 million in lost revenue - indicates key managers may not have a sufficiently sophisticated understanding of the rating process and its impacts. The Simpson Grierson review found the council lacked financial reporting and modelling capability which "strongly suggests a need for training, and possibly recruitment/restructure and training". Council chief executive Gareth Green conceded an earlier restructure - which saved the district council $10 million - played a part in the error. "That necessitated some significant pressure being applied through the business. "I think that pressure along with other pressure points in the local government sector has contributed to this [mistake] occurring, so certainly the pressure that restructure has applied has had an impact, most definitely." He was instigating another restructure designed to bring more financial and local government experience to council staff. Green said this would result in a "small number of job losses" due to new positions being created. He wasn't thinking about falling on his sword. "I do take full responsibility for this, but I am not tendering my resignation at the current time. "My total focus at this point is leading this organisation through this situation and making sure we can resolve it in the best possible way." The Simpson Grierson review also uncovered two further bungles . It revealed the council hiked average residential rates 12.8 percent rather than 9.9 percent as advertised. The gaffe equated to $102 per ratepayer or $3.1 million. The review also identified an annual plan wording error relating to industrial water use which could've cost council a further $1.4 million in lost revenue. In his report, consultant Jonathan Salter said sophisticated knowledge and understanding of the rating process and rating impacts tended to be the domain of specialist officers with a long-standing understanding of the rating function. These staff were usually intimately familiar with the council's financial reporting and modelling systems, the valuation and rating information database and the district itself, he said. "There appears to have been a lack of capability in these two areas. This strongly suggests a need for training, and possibly recruitment/restructure and training." New Plymouth Mayor Neil Holdom. Photo: RNZ / Robin Martin Mayor Neil Holdom said one reason why he called for an independent review when the GST error was discovered was so council could learn from its mistakes. "I just want to make it clear the councillors - the governance team - made decisions based on information that was incorrect. "Our long-term plan was audited by Audit NZ and they also didn't pick up this error in our rating calculation model." Holdom said the proposed restructure would bolster the financial capability and bring people onboard council with local government experience. The Simpson Grierson report also recommended an independent legal review be a component of the annual rate setting process, and that council not rely on the Audit NZ review alone. Holdom said an extra-ordinary meeting on 22 July would consider a proposal for future annual-plan and long-term plan calculations to be externally peer reviewed as part of a parcel of steps to address the recent errors. Salter also wanted the council to review how it handled documents. "It appears that document management may have been an issue ... the restricted water supply targeted rate issue appears to have arisen from an incorrect 'cut and paste' from another document." Holdom earlier described the GST blunder as a "typo" and a "cut and paste" error. The Simpson Grierson consultant also thought council should consider moving away from an average residential rates model to an overall rates model. "This would be a more transparent and certain disclosure. If there is reference to the 'average' rather than 'overall' rates increase, this concept should be defined." At the extraordinary council meeting on 22 July, the mayor would recommend councillors approve a one-off rates refund to all residential property owners to ensure the average residential rates increase equalled 9.9 percent. That would require council to find $3.1 million in savings elsewhere. Councillors would also vote on amending the rates resolution wording regarding properties on a restricted water flow - usually industrial users - to ensure council was able to charge $418 for each cubic metre of water as intended. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
6 hours ago
- RNZ News
Defence Force cuts 255 civilian roles to focus on front-line personnel
(File) NZDF is cutting 255 civilian roles to help it focus on front line personnel. Photo: Supplied / New Zealand Defence Force The Defence Force is cutting 255 civilan roles as part of a restructure. The agency said it is getting rid of 281 filled roles but establishing 276 new ones, meaning five currently filled positions will be axed. The remaining 250 jobs to be cut are currently vacant. The restructure was announced earlier this year , in March, when it was thought the net loss of roles would be about 370. In a statement, NZDF said the changes would help it focus on "maintaining combat readiness and delivering on core military activities". "In making decisions, the NZDF has consulted with staff and unions, and the feedback received has meant some changes that were initially proposed will not go ahead." Further consultation is still underway on alternative proposals, it said. "Throughout this process, the NZDF has ensured that as many staff as possible are placed into suitable alternative positions in the new structure." The Public Service Association said about 10 percent of the agency's civilian jobs were being cut and that the changes would increase already heavy workloads. This would lead to more stress and burnout, and force those in uniform to pick up the shortfall, it said. National Secretary Fleur Fitzsimons said the government was fooling itself if it thought cutting so many jobs was how to build a modern, combat-ready defence force, at a time of rising security risks. She was pleased the government was investing in military equipment and technology , but said it was blind to the fact that civilian defence workers - like engineers and IT specialists - were needed to support this. Fitzsimons said staff were told the tough fiscal environment has forced Defence to make deep cuts in a number of areas, including cancelling some training activities and major exercises; reducing flying hours, sea days and other training, and; pausing property maintenance. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
