Auckland Council paying $45 million for 'communications and engagement'

Saturday, 28 October 2017

Phil Goff under pressure to cut the numbers of 'spin doctors' the council employs.

A leaked, confidential Auckland Council report has revealed the local body is spending $45 million running its various communications departments which employ 234 staff.

Critics have called for the council to tighten its belt and drastically cut the number of 'spin doctors' it employs.

The Auckland Ratepayers' Alliance is calling for Mayor Phil Goff to chop the communications and engagement staff salary bill in half.

The review is a draft of the council's spending in the communications and engagement departments, looking into the salaries and operation costs of staff at the council and five council-controlled organisations (CCOs).

Figures in the review showed Auckland Council itself employed 105 communications and engagement staff with a wage and operational budget of $19m.

Auckland Tourism, Events and Economic Development (ATEED) had 31 communications and engagement staff and a total budget of $12.7m.

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Auckland Transport had more communications staff, 55, but a lower salary and operations bill at $6m.

Regional Facilities Auckland employed 26.5 full-time equivalent (FTE) staff at a total budget of $5m.

Watercare has 8.5 FTE and a budget of $1.5m.

Panuku Development had eight staff with a budget of $1.3m.

The review is one of four 'value for money' studies being undertaken by the council to find better ways to get value from council spending.

The council's chief executive Stephen Town said the $45.6m was the total operating budget for all communication and engagement work including wages across the council and its CCOs.

'A key contributing factor to overall staff costs is the transfer of additional functions into the Communication and Engagement department from other parts of council, such as community engagement and consultation staff. Capabilities such as a design studio have also been built up in house to achieve significant savings through efficiencies and reducing external spend,' he said, defending the cost.

Mayor Phil Goff, who campaigned on tightening the city's excess spending, addressed the reviews, which he instigated, at a meeting with the North Harbour business community in August.

'I'm spending your money,' he said. 'You need to know you're getting value for money in what we spend.'

He said CCOs acted as silos, replicating work, pointing to WaterCare insurance and treasury functions which operated separately to the council's at 'a greater expense'.

'I'm looking for economies by bringing the CCOs together with the council proper,' he said at the time.

'You can not have organisations that are using ratepayers money, under the shield of being at arm's length from [council], that are not spending that money sensibly.'

He said if replicated functions could be amalgamated, 'tens of millions of dollars' could be saved.

The Auckland Ratepayers' Alliance are now calling on Goff to halve the communications salary bill in light of the leak.

'Phil Goff and the current council were elected more than a year ago to cut wasteful spending. Why isn't it happening?' alliance spokesperson Jo Holmes said.

'We're calling on Mr Goff to make a commitment, here and now, to cut the $45 million bill in half.

'That would show that he is serious about fighting for the region's ratepayers, and not the Council's 234 spin doctors.'

Councillor Chris Darby sits on the review team looking into the 'value for money' studies.

He said it was 'disappointing' the information had been leaked as the council was 'leading the interrogation' into the use of public spending.

'I'm hugely impressed with the calibre of people doing these deep dives, they are leaving no stone unturned, this is not just some shallow review to reinforce one's current position,' he said.

'This is a fresh eyes look at various parts of the organisation to ensure we're getting the very best value for spend.'

He said at the next meeting of the team, they would be considering an updated report on the spending.

Town said in a statement on Saturday: 'The Communication and Engagement review notes that Auckland Council is within the mid-point of a central government benchmark as a percentage of total operating costs.'

He said the 'Value for Money reviews are required under the Local Government Act and were commissioned by the Mayor and councillors to look at cost effectiveness and efficiency across the council group. The first four reviews will be reported to the Finance and Performance Committee on 6 November.

'The council will carefully consider and respond to the recommendations in each of the reviews.'

*This story has been updated to state the $45m is the total operational budget, not just wages of the 234 FTE staff.

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