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RNZ News
16 hours ago
- Business
- RNZ News
New Plymouth District Council credits property owners $3.1 million to fix rates bungle
New Plymouth District Council chief executive Gareth Green. Photo: Taupō District Council / Supplied New Plymouth councillors have agreed to credit residential ratepayers an average of $102 each after a gaffe in its annual plan meant property owners faced a 12.8 percent rates hike rather than the 9.9 percent advertised. At an extra-ordinary meeting on 22 July, councillors decided to try to find $3.1 million in savings to absorb the cost of the mistake. In a chamber filled with members of the New Plymouth Ratepayers Alliance wearing black T-shirts with "Respect Our Rates" emblazoned on them, council chief executive Gareth Green kicked proceedings off with a lengthy apology. "I stand before you today to introduce this paper for your decision making, but more importantly to own on behalf of this organisation an error which has let each of you, the community and ourselves down. "Standing here having to introduce this matter brings me no joy, however, as your chief executive it is my responsibility to own what is a significant failing of this organisation." The residential rates error was discovered as part of an internal review called for following an earlier GST bungle which could've cost council $20 million in lost revenue. The GST mistake - which had been characterised as a "typo" and "cut and paste" error - was corrected earlier this month. As well as ironing out the average residential rates glitch, councillors also corrected an annual plan wording error relating to industrial water use which could've cost council a further $1.4 million in lost revenue. An external Simpson Grierson review, which ran concurrently with the internal investigation, found council lacked financial reporting and modelling capability which "strongly suggests a need for training, and possibly recruitment / restructure and training". Green was not sure exactly how the rates error occurred but said it involved an incorrect assumption about the average value of residential land. "I put it into the context that there was a lot of pressure about getting rates down and being able to keep them down and that potentially could've contributed. "We were going through a restructure process which adds stress and pressure into any organisation and there were a lot of other processes going on nationally and locally at the time. "Just like in the airline sector a plane doesn't crash because one engine stops, it does when a number of things line up and we had a number of things lining up here which created this issue." Councillors had to decide whether to offer the automatic rates remission, go ahead and charge the full 12.8 percent or initiate a Rates Replacement Proposal to increase the commercial / industrial differential rate for 2025/26 which would've required a round of consultation. New Plymouth mayor Neil Holdom. Photo: RNZ / Robin Martin Mayor Neil Holdom's recommended councillors opt for the rates remission. He acknowledged councillor Amanda Clinton-Ghodes for repeatedly raising the issue of risk when council lost two senior finance leaders - one through a resignation - during the restructure period. "Today's meeting is about transparency and finding a way forward. We've published the details of the errors and the external report including a suite of recommendations developed to ensure we are legally compliant and square these issues with the community in a fully transparent manner. The motion before you does that." Deputy mayor David Bublitz said corrosion of the public trust the gaffes caused couldn't be overstated. "The first thing we have to do is restore the trust of the public and we restore the trust of the public by doing what we said we were going to do which is rate them at the right number. "We've got no choice. We then need to ... whoever is back [after the local body elections] ... needs to work hard to ensure that our council is a little bit leaner, a little bit more efficient and a little bit more innovative, so we can make that money back. We have to get it back." Councillor Murray Chong wanted to be done with it and charge the full 12.8 percent. "The real rate is 12.8 percent. That's it. We weren't being honest or we didn't realise we weren't being honest, but it wasn't 9.9 percent at all. "So what do we do? Do we give you a remission or do we face the reality and pay it this year because the reality is because if we don't pay it this year we will have to pay it next year or we make cuts and how are we going to make cuts? We already tried to make cuts." Chong didn't believe $3.1 million in savings could be found before June next year so council would end up borrowing to pay the shortfall. Outgoing councillor Anneka Carlson-Matthews admitted she didn't often agree with councillor Chong, but she wasn't comfortable with lumping more debt on the incoming council either. "To be fair I can't leave in good faith with a $3.1 million deficit for the [incoming] council on our mistake. That doesn't sit well. "All the talk about us being able to find it [the money] and we're going to cut service levels and we're going to reign [spending] in. We reigned it in. "And we heard from the CEO today that part of that reigning it in and restructure - which was great and we saved $10 million - was actually part of potentially why we're in the situation we are now." Carlson-Matthews didn't believe council could find the savings without making significant sacrifices. Councillors voted 13-2 in favour of the rates remission. Rates bills for the first of four quarterly instalments were expected to be sent out at the end of this month as normal. The amount owed showing on the bill would reflect the resolution in adopting the Annual Plan, but an "adjustment" or credit would be applied to each bill to reflect the decision made by the council on 22 July. The credit would be spread across the year.
RNZ News
2 days ago
- Business
- 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
2 days ago
- Business
- 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.
South China Morning Post
5 days ago
- South China Morning Post
Hong Kong district councillor with traffic offence record facing misconduct probe
A Hong Kong district councillor with a record of convictions for traffic offences is being investigated for alleged misconduct by a government-appointed special panel and could be suspended from his duties in the worst-case scenario. Home affairs minister Alice Mak Mei-kuen said on Friday that she had appointed a five-member supervisory committee to investigate the alleged misconduct of Kenneth Yip Kat-kong, an appointed member of the Tuen Mun District Council. In May, the 62-year-old retired businessman was sentenced to 200 hours of community service and had his licence suspended for six months after pleading guilty to dangerous driving in a head-on collision with a taxi in Sheung Shui in August last year. Yip had failed a breathalyser test. During hearings on the case, a court also heard that Yip had previous drink-driving and careless driving convictions from 2017. 'The government places strong emphasis on the conduct and integrity of [district council] members,' Mak said.
Daily Express
5 days ago
- Daily Express
Council tackles illegal dumping at Kimanis Centro, overgrown trees
Published on: Friday, July 18, 2025 Published on: Fri, Jul 18, 2025 By: Sidney Skinner Text Size: Council's workers put their backs into removing the piles of bagged waste near the pump-house. The District Council is trying to prevent illegal garbage dumps from springing up at a commercial centre, off kilometre 15 Jalan Papar-Beaufort. The agency will also step up efforts to maintain the greenery growing on verges under its jurisdiction, including those in the Kinarut area. Advertisement This follows feedback about the rubbish piling up on some vacant land near one part of Kimanis Centro, as well as the overgrown trees along Jalan Mook and Jalan Kinarut Town. A shop-owner bemoaned his inability secure a renter as most of his potential tenants were put off by the mess on the undeveloped land beside his unit. A Kinarut driver, on the other hand, was unhappy about the bamboo groves on the road shoulders around the town. The motorist said some of the bamboo stems had become so long that they could almost touch of vehicles passing underneath. These individuals related their observations separately to Hotline. Their grievances were forwarded to the agency. A Council spokesman said an inspection was made of Kimanis Centro, shortly after it was contacted by the media. 'Our staff confirmed the presence of bagged waste strewn about in different places on the undeveloped land outside the fence of the sewerage pump-house for the property,' he said. He said a team of workers armed with rakes, brooms and spades cleared the refuse a few hours later. An open truck was deployed to facilitate their effort according to him. The spokesman said a sign was later put up to deter litterbugs from continuing to dirty the empty land. 'Anyone caught red handed will initially be slapped with a compound for as much as RM500, under the Uniform (Anti-Litter) By-Laws 2010. 'Repeat offenders, and those who are hard headed, run the risk being penalised legally.' He said the wrongdoers could find themselves RM20,000 poorer, if they were found guilty in court. This was the maximum fine which could be imposed under the By-Laws, according to him. 'Alternatively, they may be required to serve a jail-term of up to one year, or both.' The spokesman was under the impression that 'outsiders' had taken to discarding their refuse near the pump-house. He said a check of its records revealed that there been no breakdown in the Council's collection service. 'Our staff go from shop to shop once a day to remove the garbage generated by each business.' When asked whether a bin-centre could be constructed for the commercial centre, he said the Council was reluctant to have such an amenity put up as it would most likely to be abused by the 'outsiders'. The Council's Enforcement Division had been apprised about what had been transpiring at Kimanis Centro, according to the spokesman. 'Our officers will keep an eye on the commercial centre from time to time to try and nab anyone who disposes of their rubbish indiscriminately.' Where the overgrown bamboo trees on Jalan Mook and Jalan Kinarut Town were concerned, he said the agency would have to determine whether these stretches had been included in its road register. 'Should this prove to be the case, then a preliminary inspection will be made to sort out the details of the tree-pruning effort we will have to make.' He said the greenery growing on those road reserves under the Council's care were not maintained according to a fixed schedule. 'Given the extensiveness of our rating area and a lack of manpower, we are unable to trim the overgrown greenery on a regular basis. 'The trees on our verges are tended to as and when it becomes necessary to do so.' * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
