Millions of savings targeted in Auckland Council cost cutting

Wednesday, 1 November 2017

Four Auckland Council reviews show a 'very significant amount of money' could be saved, Mayor Phil Goff said.

Auckland mayor Phil Goff promises cuts to the council's 234 communications staff and more savings to come.

On Monday a 'value for money' review of the communication and engagement team at Auckland council and its related Council-Controlled Organisations was leaked showing it was acting inefficiently without a masterplan.

Phil Goff expects Auckland Council's communications and engagement group to slash 15 per cent off its annual operating budget over the next three years.

It is one of four 'value for money' reviews underway and Goff said on Wednesday they show the council can identify a 'very significant amount of money' too be saved.

$373 million is identified in 'potential savings' over the next 10 years from the four government mandated reviews covering domestic waste water services, three waters, investment attraction and global partnerships, and communications and engagement.

'I don't think we have spin doctors, but we are statutorily obliged to consult with the public,' Auckland Mayor Phil Goff said.

'Further integration, joint procurement and capital planning' across the Auckland's three water services could save another $300m, Phil Goff said.

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Auckland Council's waste review indicates a shift from domestic to commercial and industrial waste reduction. (file).

But much of the millions identified, which comes to just over $37m per year, require services amalgamation, cutting operating budgets and user-pays.

Communication and engagement

Goff expects the council's PR groups spread across several council organisations to slash 15 per cent off its annual operating budget over the next three years 'potentially' saving more than $54m over 10 years.

Marketing and communications to the public needed reassessment as low levels of public engagement with Aucklanders indicated the current approach might not represent 'good value for money', he said.

The group employs 234 staff, Goff said 'as a result of the budget cut there will be fewer staff'.

'We've got a high attrition rate in communications at the moment , about 20 per cent, that indicates the organisation is not working in a way that people feel is optimal,' Goff said on Wednesday.

Goff denied the council was employing 'spin doctors'.

'I don't think we have spin doctors, but we are statutorily obliged to consult with the public'.

Water

Called 'three waters', the water, wastewater and stormwater review said $13m could be saved immediately by combining water and stormwater service maintenance and operations.

'Further integration, joint procurement and capital planning' across the three services could save another $300m, Goff said.

There's a 'clear intention' to eventually roll the three services into one organisation, he said.

The council is 'probably talking about $6 to $7 billion of capital expenditure' like pipe purchasing it can negotiate bulk purchasing savings off.

As an example, bulk insurance purchasing across council had bought council $1b extra natural disaster cover for no extra cost, Goff said.

Investment attraction and global partnerships

The review recommended council agencies involved needed to better coordinate while some free services provided to private sector firms could now cost.

Better 'outcome measures' were needed to gauge the council's investment attraction and global partnership efforts.

Waste

Operating cost reductions saving $165m since 'super city' amalgamation show the council's domestic waste reduction plan is working, the report said.

The business case for council's waste strategy needs to be 'broader' while shifting focus from domestic to commercial and industrial waste reduction must be considered.

Just the start

Finance and Performance Committee deputy chairwoman, councillor Desley Simpson, said the first four reviews, which are part of a rolling review process, are 'baby steps'.

'We'll get significantly more savings. This is a great way to show to Aucklanders we're committed to getting our house in order before asking them for any more money.'

The committee will debate the reports on November 6.