Auckland, June 20, 2020
Now that we are in Covid-19 Alert Level 1 and enjoying a return to more normal activity after the long weeks of lockdown, we can celebrate the success of Auckland and New Zealand in halting the transmission of Covid-19.
It was a collective effort that saved hundreds if not thousands of lives, something of which we can all be proud.
Our next challenge will be dealing with the economic fallout of Covid-19 and the lockdowns.
While the earlier than expected move to Level 1 is encouraging, the virus has nevertheless had a severe impact on our economy.
Jobs have been lost and businesses have gone under.
Heavy loss for Auckland
For Auckland Council, it will mean an estimated revenue loss of $525 million in the coming year.
This loss is a result of reductions in non-rates revenue, including the loss of dividends from the airport and port, loss of income from public transport fares and parking revenue, and reduced income from venues and facilities like the Auckland Zoo, Museum of Transport & Technology, and pools and leisure centres.
With the economic downturn, development contribution and regulatory income will also slow.
We have committed to supporting those who are unable to pay their rates because of Covid-19 by allowing them to postpone their rates payment without penalty. While this means a loss of $65 million in revenue over the year, to be recovered later, it is the right thing to do.
We want to give those who have lost their jobs or income a chance to get back on their feet.
Reduced spending
Because there is less money coming in, we need to reduce spending wherever possible.
We have frozen recruitment and staff numbers are likely to reduced, already we have had to lay off more than 700 temporary and contract workers.
Staff and elected members including myself have accepted voluntary pay reductions of up to 20 per cent of salaries.
As a result of these losses, some services will be reduced, and some investment in transport, housing and environmental construction will be deferred for a year.
Continued investments
However, we know Aucklanders put great value on key services such as transport, water, waste collection, libraries, parks and playgrounds and street cleaning, and we are committed to maintaining the services Aucklanders need.
We also want to continue investing where possible in our infrastructure building programme, which provides capital works in important areas such as transport, housing, and the environment, as well as helping to maintain and create jobs and stimulate economic recovery.
Consultation on the Emergency Budget is open until 19 June, and I encourage you to visit www.akhaveyoursay.nz/emergency-budget to have your say.
Water crisis
Compounding the difficulties caused by Covid-19 is the worst drought that Auckland has ever experienced. Lake levels which were up to 90% in October are now down to 44%.
Normally, at this time of year the lakes would be 75% full.
Watercare will soon use emergency powers under the Resource Management Act that will enable it to draw an extra 25 million litres of water a day from the Waikato River.
I have instructed Watercare to explore every avenue to increase water supply to combat the emergency situation that will arise this summer if winter and spring rainfall is not enough to replenish water supply.
With water levels critically low, it is important to save water around the house wherever possible. Please visit waterforlife.org.nz to find out more and for tips on how to save water.
Phil Goff is Mayor of Auckland. He writes a regular column in Indian Newslink.
