Coronavirus: Auckland Mayor Phil Goff open to pay cut

Tuesday, 7 April 2020

Auckland Mayor Phil Goff announces Auckland Council facilities will close (video first published in March).

Auckland Mayor Phil Goff says he's prepared to take a cut of 10 per cent or more to his $296,000 salary, as the council prepares a budget hit by coronavirus impacts.

Goff said Auckland Council was already shedding contract and temporary staff, and there was a freeze on recruitment.

'I'm absolutely willing to cary my share of the burden on that, and I think our executive leadership team is as well,' Goff told RNZ.

Auckland mayor Phil Goff is happy to take a pay cut

The mayor's comments came at a time of year when the Remuneration Authority normally unveils the salary increases it allows local body politicians.

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Goff gave no detail about how a cut to his own salary, or others might occur.

'I'm talking to Government about that, there's some talk of a uniform policy across the country, at the very least a pay freeze,' said Goff.

The mayor said at a time of increasing unemployment, with some people finding it really hard, 'those of us on better incomes have to take our share of that sacrifice as well.'

Stuff understands discussion is underway at executive level at Auckland Council, and across other local bodies about whether a salary response is appropriate.

Auckland Council will finalise its annual budget over the next two months, and is already taking a revenue hit with the loss of dividends from its 22 per cent shareholding in Auckland International Airport, and an expected fall in building-related fees, and income from its own facilities.

Goff rejected a call from lobby group the Auckland Ratepayers Alliance, and its parent the Taxpayers' Union, for councils to freeze rates.

Local bodies, unlike the Government, are not allowed to borrow to cover operating costs, only for capital works.

Rates in Auckland make up only half of the revenue that the council runs on.

'Income will be sharply down, and the level of people seeking postponements of rates will be up,' said Goff.

'For those people suffering genuine hardship, we will bend over backwards.'

Auckland Council is due to raise general rates by an average of 3.5 per cent from July, one of the lowest rates rises proposed by local bodies, before Covid-19 had an impact.

The council is already working through restructuring to reduce the number of staff positions by up to 350.

The chief executive Stephen Town is due to end his term at the end of the financial year on June 30, and the chief financial officer Matthew Walker leaves this week for a new role at NZTA.