logo
Invercargill mayor Nobby Clark criticises own council of being too risk averse

Invercargill mayor Nobby Clark criticises own council of being too risk averse

RNZ News2 days ago

Invercargill Mayor Nobby Clark says his council should take more risks.
Photo:
RNZ / REECE BAKER
Invercargill mayor Nobby Clark has hit out at his own council, saying its aversion to risk has resulted in an "eye watering" consultants bill.
His comments follow the organisation revealing it spent more than $7.3 million on consultants in less than three years between July 2022 and December 2024.
Clark said the council's low tolerance for risk meant elected members didn't "run against" advice from management, and management used consultants to "justify" the advice they gave elected members.
"For me, personally, I think the risk should be higher. We should take more risk," Clark said.
"Because at the end of the day, you've got to balance it out against the cost of these consultants, which are eye watering amounts."
Clark said the only way to change the situation was to tell staff not to spend large amounts on advice, and for councillors to accept the risk.
"And if we get it wrong, we get it wrong."
Invercargill City Council was approached for comment but did not respond in time for publication.
The numbers were made public on the back of a LGOIMA request from the Taxpayers' Union, which released the data on Friday.
It showed $2.58 million was spent on consultants for the 12 months to June 2023, $3.23 million was spent for the 12 months to June 2024, and $1.52 million was spent for the six months to December 2024.
The document showed more than 160 companies were used during the two-and-a-half-year period.
Deloitte topped the spending with more than $424,000 for work on reviewing rates, contract compliance, internal audit support, and risk and assurance support.
Stantec was next with a figure of more than $396,000 for support with the Bluff wastewater consent.
LDR is local body journalism co-funded by RNZ and NZ On Air.
Sign up for Ngā Pitopito Kōrero
,
a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Financial hardship cases rise
Financial hardship cases rise

RNZ News

timean hour ago

  • RNZ News

Financial hardship cases rise

The number of Centrix customers in arrears is down 1 percent on a year ago. File photo. Photo: RNZ Households are generally managing to stay on top of their debt, but hardship cases and business liquidations continue to rise. The latest report from credit bureau Centrix showed a marginal increase in the number of customers in arrears to 485,000 in May on the month before, 12.5 percent of the credit active population, but down 1 percent on a year ago. Managing director Keith McLaughlin said the numbers suggested signs of stability, with the prospect of further improvement. "We saw many of the major banks cut interest rates again, which could have an impact on household finances over the coming months." The number of consumers more than 90 days overdue on payments edged lower to 81,000, while mortgage arrears eased to 1.44 percent, a drop of 700 to 21,900. For consumers, arrears for vehicle, personal loans, and credit cards decreased, while buy now pay later arrears were higher. Consumer credit demand increased 7 percent on a year ago, driven by mortgage lending. "This growth was largely driven by an 18.6 percent year-on-year increase in new residential mortgage lending, reflecting heightened market activity and borrowers seeking better rates," McLaughlin said. "Despite this rebound, mortgage lending remains below the levels seen during the 2021 property boom." The report showed an increase of 300 in the number of financial hardship cases to 15,000, which was up 14.4 percent on the year before, with just under half of those related to difficulties in paying mortgages. Businesses continued to do it tough with a rise in defaults and the number of company liquidations at their highest monthly level since September last year, although the annual increase slowed to 27 percent on the previous year. McLaughlin put the increase down to a tougher enforcement policy by Inland Revenue in various sectors. "The construction sector has been hit the hardest - over 750 building firms have gone into liquidation in the past 12 months. "The highest rates of business failures have been seen in residential construction, property development and operations, hospitality, especially restaurants and cafés, and road freight transport." Even so, business demand for credit was higher than a year ago, notably in the retail, hospitality, and financial and insurance sectors. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Household debt showing signs of stability
Household debt showing signs of stability

RNZ News

time2 hours ago

  • RNZ News

Household debt showing signs of stability

The number of Centrix customers in arrears is down 1 percent on a year ago. File photo. Photo: RNZ Households are generally managing to stay on top of their debt, but hardship cases and business liquidations continue to rise. The latest report from credit bureau Centrix showed a marginal increase in the number of customers in arrears to 485,000 in May on the month before, 12.5 percent of the credit active population, but down 1 percent on a year ago. Managing director Keith McLaughlin said the numbers suggested signs of stability, with the prospect of further improvement. "We saw many of the major banks cut interest rates again, which could have an impact on household finances over the coming months." The number of consumers more than 90 days overdue on payments edged lower to 81,000, while mortgage arrears eased to 1.44 percent, a drop of 700 to 21,900. For consumers, arrears for vehicle, personal loans, and credit cards decreased, while buy now pay later arrears were higher. Consumer credit demand increased 7 percent on a year ago, driven by mortgage lending. "This growth was largely driven by an 18.6 percent year-on-year increase in new residential mortgage lending, reflecting heightened market activity and borrowers seeking better rates," McLaughlin said. "Despite this rebound, mortgage lending remains below the levels seen during the 2021 property boom." The report showed an increase of 300 in the number of financial hardship cases to 15,000, which was up 14.4 percent on the year before, with just under half of those related to difficulties in paying mortgages. Businesses continued to do it tough with a rise in defaults and the number of company liquidations at their highest monthly level since September last year, although the annual increase slowed to 27 percent on the previous year. McLaughlin put the increase down to a tougher enforcement policy by Inland Revenue in various sectors. "The construction sector has been hit the hardest - over 750 building firms have gone into liquidation in the past 12 months. "The highest rates of business failures have been seen in residential construction, property development and operations, hospitality, especially restaurants and cafés, and road freight transport." Even so, business demand for credit was higher than a year ago, notably in the retail, hospitality, and financial and insurance sectors. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Review into Whānau Ora Commissioning funding terms of reference released
Review into Whānau Ora Commissioning funding terms of reference released

RNZ News

time12 hours ago

  • RNZ News

Review into Whānau Ora Commissioning funding terms of reference released

Photo: RNZ / Mihingarangi Forbes Terms of reference for a review into Whānau Ora Commissioning funding have been released. The review will be led by Doug Craig, director of the RDC Group consultancy, who recently investigated concerns raised about Manurewa marae. Te Puni Kōkiri set up the independent investigation last week after reports Te Pou Matakana Limited spent up on an ad campaign urging people to switch to the Māori electoral roll, and Pasifika Futures Limited put $770,000 towards the Moana Pasifika rugby team. Concerns have also been raised about contracting decisions and conflicts of interest by a Pasifika Futures senior executive. The review will examine funding plans and Outcome Agreements, conduct interviews with the agencies, and gather advice from public agencies and the Auditor-General on best practice use of public funding. It will report back on: However, the review cannot comment on the competence of individuals involved, "except to the extent this related directly to contract management, or determining any disciplinary matters". The two agencies' commissioning contracts expire today, with four new commissioning agencies beginning contracts on Tuesday. Te Puni Kōkiri policies not related to the review, and the contracts held with Te Pou Matakana, Pasifika Futures, or other agencies are also out of scope. Interim reports will be provided every week, starting this Friday, 4 July - and a final report will be delivered to the ministry for review and comment. The Secretary of Māori Development may then release the final report or a summary of findings. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store