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Scoop
24-05-2025
- Business
- Scoop
Staffing Costs At Hawke's Bay Councils – Are They Reasonable?
The wage bills being racked up by councils around Hawke's Bay look high, but they're hard to contextualise and it would be hard to argue what an acceptable amount is, a business expert says. Figures, attained by Local Democracy, show five Hawke's Bay councils spent in total more than $434 million dollars on people costs in 2024. However, the figure will be higher than that as some councils withheld contractors and/or consultants costs. Napier City Council, in a bid to save $3 million in labour costs for the 2025/6 financial year, is now reviewing its structure with a proposal to reshape its operations, which will affect more than 100 of its 785 jobs. Hastings District Council has fewer permanent staff and spent $39 million on staff salaries in 2024, but its contractor and consultant bills were significantly higher at $241m. Napier City Council spent $97m, the vast majority of that on staff salaries, with $24m going to contractors and consultants. In Central Hawke's Bay, spending on staff wages and consultants was just under $8.5 million (no cost for contractors was provided). In Wairoa, the cost of wages was just over $7 million (in its case no details for contractors or consultants were provided). At the Hawke's Bay Regional Council people costs were just over $42 million. No information was given for contractors. The average salary of a Hastings District Council worker in 2024 was $82,864 and in Napier it was $92,829. The cost of staffing at Hawke's Bay councils has been in the spotlight for years. During a push for amalgamation it was noted by supporters of a singular council for the region that rivarly between neighbouring territorial authorities could drive up the cost of recruiting and retaining council staff. Savings on people costs are also part of the reason Hawke's Bay councils have opted for a region-wide Local Water Done Well model as their preferred option in ongoing consultation with the public. Chief Executive and Principal Economist at Infometrics and one of New Zealand's leading economic commentators Brad Olsen said it was hard to contextualise what was a reasonable price for ratepayers to pay for staffing. Olsen said there was a tendency to 'vilify' contractor and consultant spending. 'But I don't think that's always warranted and is often a fairly surface-level concern. 'I don't think people with concerns about contractor and consultant spending really want this to be cut to zero if it meant no roading or water infrastructure investment. 'There's a clear and ongoing focus from councils to focus on delivering value for money, but costs for delivering council services continue to rise too, often above the rate of headline household inflation. 'Although headline consumer prices have increased 23% since the end of 2019, Infometrics analysis of Stats NZ capital cost data shows that the cost of delivering transport infrastructure has increased by an average of 25% over the same period, and delivering water infrastructure has seen a 32% cost increase.' Olsen said contractors did what couldn't be done in-house and plenty of that would have been required post-Cyclone in Hawke's Bay. 'The scale of work can differ considerably between councils, and makes comparing spending levels challenging. 'For context, Hastings District Council's Annual Report 2023/24 shows $169m in capital funding, while Napier had $35m, with the difference in spending size driven by the size and scale of the infrastructure task and area covered by territorial authorities,' Olsen said. Hastings Hastings Council, as of June 2024, employed 517 permanent and fixed-term full-time and part-time staff (headcount) with a full-time equivalent of 478 on an average salary of $82,864. It paid $241m for the 23/24 financial year ($141.8m capital expenditure/$100m operational) to contractors and consultants including those involved in capital projects (things like road and bridge builds, demolition, three waters pipe facilities and networks) plus operational, a broad range from security services to key asset maintenance services, to expert and legal advice. A spokesperson for the council said almost $46m of the operational spend was directly attributable to Cyclone Gabrielle, as was $56.3m of the capital spending. The council is not planning any large-scale restructuring of its organisation in 2025. CEO Nigel Bickle's remuneration for the year ending June 2024 was $435,880. Council says in October 2024 it agreed to a pay increase for Bickle from July 1, 2024, however, he declined it. All mayors' salaries are set by the Remuneration Authority. Hastings mayor Sandra Hazlehurst was paid $166,910 for 2024/25. This expires on June 30, 2025, when the authority will replace it with another determination. The most recent mayoral pay increase was July 1, 2024, (when it was increased to the current amount). Before that, there had not been an increase since 2022. Napier Napier City Council employed 785 people with an average wage for full-time staff as of February 28, 2025, of $92,829 including some who work 42.5 hours per week. ($43.46 per hour). In 2024 it paid $24,449,562 (including GST) to 448 different suppliers for consultancy and contractor services. The council says it relies on a diverse range of external contractors and consultants to support the delivery of essential services and infrastructure to the community. 'It includes critical areas such as roading, water services, and waste management, as well as specialist expertise for projects where it is more cost-effective or practical to engage external providers rather than maintaining in-house resources year-round. 'This approach ensures we can respond flexibly to project demands, access specialist skills when required, and maintain value for money for our ratepayers. The spending reflects the scale and complexity of the services we deliver, as well as our commitment to ensuring high-quality outcomes for the community. 'We monitor and manage contractor arrangements to ensure they deliver strong value and contribute effectively to our service delivery goals.' The council supported regular (formal) working-from-home arrangements. When working from home on a regular basis, it is generally expected a maximum of two days per week (60% working in the office and 40% working from home) will be agreed on. Its chief executive Louise Miller, who was employed on March 13, 2023, was paid $384,000 for 23/24 while mayor Kirsten Wise was paid $160,000 for the same period. Central Hawke's Bay Central Hawke's Bay District Council, as of June 30, 2024, employed 92.5 full-time staff at an average wage of $84,288. Seven were externally funded and there were 10 vacancies. For the calendar year 2024 it paid eight consultants a total of $640,000 including GST. A council spokesperson said they were doing the work like ordinary staff, and CHBDC paid them directly. 'We also have contractors employed, but these fall under contracts and we don't have direct oversight of the number and how much they are paid. This includes the mahi to look after our water services, plants and reserves and roads.' Chief executive Doug Tate's salary was $257,852 at June 30, 2024. Mayor Alex Walker's salary is $119,272. Wairoa Wairoa District Council employs 89 staff, with an average wage of $82,340. It said it would only provide information around its costs for consultants and contractors if required to under the Local Government Official Information Act (LGOIMA). 'Given the amount of resource required to process it, we have decided to charge for making the requested information available'. The first hour was free, but then the charge to collate the information would cost $38 for every half hour of work, estimated at four hours. Local Democracy Reporting declined the offer. Mayor Craig Little was paid $116,979 for 23/24 and for 2024/25 $121,307. The CEO's salary for 2024 was $215,000. Former CEO Kitea Tipuna resigned in April and Malcolm Alexander is now the interim chief executive. Regional At the Hawke's Bay Regional Council there are 311.6 full-time staff (as of June 30, 2024) with an average pay of $96,776.34 - this includes the executive leadership team's salaries. In 23/24 HBRC spent $12,220,706.45 on consultants. This excludes professional (legal/audit etc.) fees and contractors and is only for external consultants. No information was given for contractors. Chief executive Dr Nic Peet's current salary package is $356,536 while its chair Hinewai Ormsby's salary package for 23/24 is $148,043.
Scoop
23-05-2025
- Entertainment
- Scoop
Māoriland's Cannes Film Festival Win Takes Ōtaki To The World
One of Kāpiti Coast's most celebrated cultural organisations won a prestigious award at the Cannes World Film Festival earlier this week. Recognised in the Economic and Social Impact category, Māoriland's win is a testament to the kaupapa-driven work the organisation champions from its homebase in Ōtaki. Supported by Kāpiti Coast District Council's Major Events Fund, the Māoriland Film Festival has grown into Aotearoa New Zealand's premier international indigenous film festival, attracting thousands of attendees to the district every year. Kāpiti Coast Deputy Mayor Lawrence Kirby says the Council is thrilled for Māoriland and their head of content Libby Hakaraia. 'Māoriland's kaupapa is very much about the mana (essence) and manawa (heart) of its community, connecting indigenous creativity in our district, across the country, and globally,' says Cr Kirby. 'Beyond its annual film festival, Māoriland also host events, exhibitions and year-round educational programmes that foster youth creativity, supports Māori screen practitioners, and strengthens our local creative economy. 'What we already knew about Māoriland the rest of the world does now too.' Kāpiti Coast Economic Kotahitanga Board Chair Neil MacKay says Libby Hakaraia has shone a light on the creativity at Māoriland Hub on the global stage. 'This well-deserved award is true recognition of Libby's vision and perseverance and what has been built at Māoriland,' says Mr MacKay. 'Kāpiti has been listed in the Top 5 nationally on the Infometrics Creativity index, dubbing us as one of New Zealand's creative centres. There is no mistaking that we have an abundance of creatives in our district and should take pride on this global achievement.'
NZ Herald
22-05-2025
- Business
- NZ Herald
Staffing costs at Hawke's Bay councils - are they reasonable?
While Hastings District Council has fewer permanent staff, it spent $241m on people costs in 2024, the most of all Hawke's Bay councils. That figure includes not just staff salaries, but contractor and consultant bills. Napier City Council spent $97m. In Central Hawke's Bay, spending on staff wages and consultants was just under $8.5m. No cost for contractors was provided. In Wairoa, the cost of wages was just over $7m. No details for contractors or consultants were provided. At Hawke's Bay Regional Council, people costs were just over $42m. No information was given for contractors. The average salary of a Hastings District Council worker in 2024 was $82,864 and in Napier it was $92,829. The cost of staffing at Hawke's Bay councils has been in the spotlight for years. During a push for amalgamation it was noted by supporters of a singular council for the region that rivarly between neighbouring territorial authorities could drive up the cost of recruiting and retaining council staff. Savings on people costs are also part of the reason Hawke's Bay councils have opted for a region-wide Local Water Done Well model as their preferred option in ongoing consultation with the public. Chief executive and principal economist at Infometrics and one of New Zealand's leading economic commentators Brad Olsen said it was hard to contextualise what was a reasonable price for ratepayers to pay for staffing. Olsen said there was a tendency to 'vilify' contractor and consultant spending. 'But I don't think that's always warranted and is often a fairly surface-level concern. 'I don't think people with concerns about contractor and consultant spending really want this to be cut to zero if it meant no roading or water infrastructure investment. 'There's a clear and ongoing focus from councils to focus on delivering value for money, but costs for delivering council services continue to rise too, often above the rate of headline household inflation. Advertise with NZME. 'Although headline consumer prices have increased 23% since the end of 2019, Infometrics analysis of Stats NZ capital cost data shows that the cost of delivering transport infrastructure has increased by an average of 25% over the same period, and delivering water infrastructure has seen a 32% cost increase.' Olsen said contractors did what couldn't be done in-house and plenty of that would have been required post-Cyclone in Hawke's Bay. 'The scale of work can differ considerably between councils, and makes comparing spending levels challenging. 'For context, Hastings District Council's Annual Report 2023/24 shows $169m in capital funding, while Napier had $35m, with the difference in spending size driven by the size and scale of the infrastructure task and area covered by territorial authorities,' Olsen said. Hastings Hastings Council, as of June 2024, employed 517 permanent and fixed-term fulltime and part-time staff (headcount) with a fulltime equivalent of 478 on an average salary of $82,864. It paid $241m for the 23/24 financial year ($141.8m capital expenditure/$100m operational) to contractors and consultants including those involved in capital projects (things like road and bridge builds, demolition, three waters pipe facilities and networks) plus operational, a broad range from security services to key asset maintenance services, to expert and legal advice. Advertisement Advertise with NZME. A spokesperson for the council said almost $46m of the operational spend was directly attributable to Cyclone Gabrielle, as was $56.3m of the capital spending. The council is not planning any large-scale restructuring of its organisation in 2025. CEO Nigel Bickle's remuneration for the year ending June 2024 was $435,880. The council says in October 2024 it agreed to a pay increase for Bickle from July 1, 2024, but he declined it. All mayors' salaries are set by the Remuneration Authority. Hastings Mayor Sandra Hazlehurst was paid $166,910 for 2024/25. This expires on June 30, 2025, when the authority will replace it with another determination. The most recent mayoral pay increase was July 1, 2024, (when it was increased to the current amount). Before that, there had not been an increase since 2022. Napier Napier City Council employed 785 people with an average wage for fulltime staff as of February 28, 2025, of $92,829 including some who work 42.5 hours per week. ($43.46 per hour). In 2024 it paid $24,449,562 (including GST) to 448 different suppliers for consultancy and contractor services. The council says it relies on a diverse range of external contractors and consultants to support the delivery of essential services and infrastructure to the community. 'It includes critical areas such as roading, water services, and waste management, as well as specialist expertise for projects where it is more cost-effective or practical to engage external providers rather than maintaining in-house resources year-round. Advertise with NZME. 'This approach ensures we can respond flexibly to project demands, access specialist skills when required, and maintain value for money for our ratepayers. The spending reflects the scale and complexity of the services we deliver, as well as our commitment to ensuring high-quality outcomes for the community. 'We monitor and manage contractor arrangements to ensure they deliver strong value and contribute effectively to our service delivery goals.' The council supported regular (formal) working-from-home arrangements. When working from home on a regular basis, it is generally expected a maximum of two days per week (60% working in the office and 40% working from home) will be agreed on. Its chief executive Louise Miller, who was employed on March 13, 2023, was paid $384,000 for 23/24. Mayor Kirsten Wise was paid $160,000 for the same period. Central Hawke's Bay Central Hawke's Bay District Council, as of June 30, 2024, employed 92.5 fulltime staff at an average wage of $84,288. Seven were externally funded and there were 10 vacancies. For the calendar year 2024 it paid eight consultants a total of $640,000 including GST. A council spokesperson said they were doing the work like ordinary staff, and CHBDC paid them directly. 'We also have contractors employed, but these fall under contracts and we don't have direct oversight of the number and how much they are paid. This includes the mahi to look after our water services, plants and reserves and roads.' Chief executive Doug Tate's salary was $257,852 at June 30, 2024. Mayor Alex Walker's salary is $119,272. Wairoa Wairoa District Council employs 89 staff, with an average wage of $82,340. It said it would only provide information around its costs for consultants and contractors if required to under the Local Government Official Information Act. 'Given the amount of resource required to process it, we have decided to charge for making the requested information available'. The first hour was free, but then the charge to collate the information would cost $38 for every half hour of work, estimated at four hours. Local Democracy Reporting declined the offer. Mayor Craig Little was paid $116,979 for 23/24 and for 2024/25 $121,307. The CEO's salary for 2024 was $215,000. Former CEO Kitea Tipuna resigned in April. Malcolm Alexander is now the interim chief executive. Regional At Hawke's Bay Regional Council, there are 311.6 full fulltime staff (as of June 30, 2024) with an average pay of $96,776.34 - this includes the executive leadership team's salaries. In 23/24 HBRC spent $12,220,706.45 on consultants. This excludes professional (legal/audit etc.) fees and contractors and is only for external consultants. No information was given for contractors. Chief executive Dr Nic Peet's current salary package is $356,536. Chair Hinewai Ormsby's salary package for 23/24 is $148,043.
RNZ News
21-05-2025
- Business
- RNZ News
Economic recovery off to slow start, rural areas buoyed by exports
Rural economies are being buoyed by better dairy, meat and horticulture export prices. Photo: Gianina Schwanecke / Country Life New Zealand's economic recovery has begun with a whimper, rather than a roar, with the momentum coming from rural areas, according to consultancy Infometrics. Principal economist Nick Brunsdon said growth was lower in every region of the country in the first three months of the year. "Rural economies are currently New Zealand's strongest performers, with rural area GDP down just 0.4 percent a year, buoyed by better prices for our dairy, meat and horticulture exports." Brunsdon said economic activity in urban areas, with a concentration of construction, manufacturing, retail and professional services, is still contracting. Auckland and Wellington experienced the sharpest job losses in the first quarter. "The South Island is doing comparatively better on the jobs front, and Otago region leads the pack, with just a 0.2 percent decline in employment." Strong US beef exports and inbound tourism is offset by the uncertainty around the impact of US president Donald Trump's tariffs on New Zealand and its other trading partners. Brunsdon said there "was an irony that as we become more reliant on them (the US market), that makes us more vulnerable". "Connecting back to what's happening in the US, the only real certainty is uncertainty and so we think that could delay our full recovery by up to two years," he said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
1News
19-05-2025
- Business
- 1News
Holiday planning? Here's where your dollar might go further
New Zealand's dollar has become a little stronger against the US in the past month - but if you're looking for a holiday where you can make the most of the exchange rate, that's not the part of the world to be looking in. The NZD has been worth as much as US$0.60 in recent weeks. But based on historical performance, it remains weak. Data from Infometrics chief forecaster Gareth Kiernan showed, at an exchange rate of one dollar buying US58c, the dollar is 12% down on the USD's average exchange rate of the last 10 years and down 17% over 20 years. It's down 12% against the euro over the 10-year period, and against the British pound. But there are parts of the world where the New Zealand dollar is going further than normal at present. Travelling to Australia isn't so bad. The dollar is down 1% compared to the average of the last 10 years, but up 4% over the last 20 years and 5% over the last 30. On a 10-year average basis, the dollar is also up against the Japanese yen, up 9%, Indian rupee, up 3%, Indonesian rupiah, up 2%, and South Korean won, up 4%. It is up 30% compared to a 30-year average for the Indian rupee, 20% for the Japanese yen and 41% for Indonesia. Kiernan said the fact that the strength was limited to a smaller group of countries was due to a few factors. "New Zealand's growth performance over the last couple of years, plus immediate prospects, remain relatively poor, so international investors are looking at other places to put their money where the expected returns might be better. "Secondly, there's a high level of risk aversion and uncertainty at the moment, which typically count against New Zealand as well," he said. "The latter factor might not be helped by our fiscal position, with negative comments from credit ratings agencies last year and close attention being paid to the track back towards balancing the books at next week's Budget. "Our government debt levels might not be as high as many other countries, but we tend to get held to a higher standard because we're relatively small, which adds to the perception of risk." David Coombes, chief executive of House of Travel, said there had been a slight softening in bookings to the US in the last few weeks, and the dollar could be playing a part in that. "Our stores across the country are saying that the current exchange rate, with the New Zealand dollar weaker against the US, is influencing customer destination choices, with many looking to places where their money goes further on the ground." A report from Mastercard analysed exchange rate movements and the number of tourist arrivals from 2000 to 2024 across 24 tourism markets to determine how much of an impact currency movements could have. Across six tourism destinations - Japan, US, Australia, Hong Kong, Singapore and Switzerland - it estimated the change in the number of tourists arriving when the currency dropped 1%. It found the biggest impact was for travel from China to Japan - a 1% depreciation of yen against the renminbi was associated with a 1.5% increase in tourists to Japan. New Zealand visitor numbers only lifted 0.2% in response to the same degree of depreciation and were also less responsive to changes in the USD. "Travellers from Asia tend to be more sensitive to exchange rate fluctuations, as such movements can significantly impact their purchasing power during international travel - an important factor in their outbound travel planning. "In comparison, the long distances between New Zealand and most travel destinations mean that New Zealand travellers may not be able to easily alter their travel decisions based on changing foreign exchange conditions. "Additionally, travellers from more developed markets are generally more influenced by local economic conditions than by FX changes." The Mastercard analysts said the dollar would need to shift by 10% or 15% against another currency to have an impact on travel decisions.
