24 Apr 2017

Goff's half year looms with big fiscal hopes still alive

9:52 am on 24 April 2017

Auckland's mayor Phil Goff is approaching his six-month mark in office saying he believes his two big budget ideas will eventually come through, despite opposition.

Left-leaning Auckland mayoral candidate Phil Goff proposes a maximum 2.5 percent average rates rise.

Auckland mayor Phil Goff is approaching his six-month mark in office. Photo: RNZ / Todd Niall

A regional petrol tax and an extra rate on commercial accommodation remain big ticket items on Mr Goff's agenda.

Though the first of the two key budget initiatives for this year, the regional fuel tax, has been rejected by the government, Mr Goff said he was keeping the argument alive, and would push it again once this year's general election is decided.

New transport funding was needed soon, with an interim levy on ratepayers due to expire mid-next year.

"We need a source of funding - the government's talking about a congestion tax - but I've just come back from Melbourne where people are working on the same issues," he said.

"Infrastructure Victoria says a congestion tax would take six to ten years to put in place," Mr Goff told RNZ in an interview on his first six months.

"We need something now because we've got a $400 million a year deficit, even to implement a minimum plan dealing with congestion."

Auckland visitor levy still on cards

The tourism sector is doing its best to sink his plans for a $28 million rate hike on commercial accommodation properties, but that plan too is still alive.

Mr Goff wants the money to cover the cost of staging major events, and tourism promotion, freeing up ratepayer cash to put into much-needed infrastructure.

The tourism sector is against shouldering the entire cost of promoting an industry where the benefits are shared much more widely than just to accommodation providers.

An Auckland QC has written a letter to the council suggesting such a rate might not survive a legal challenge.

The mayor was not impressed: "I don't believe the legal case against doing this is a persuasive case," Mr Goff said.

"Clearly I would not have proceeded with this without legal advice from council lawyers and our legal firm that it is legitimate for council to act in this way."

Past Wellington officials hired

A feature of Mr Goff's mayoralty is his decision to hire key staff in his office from a circle of past officials he worked with in Wellington during a three-decade parliamentary career.

His chief of staff, former Labour leader chief press secretary Fran Mold, has left and been replaced with a former senior diplomat and past Goff associate Taha MacPherson.

Mr Goff said it was a deliberate move not to hire people from within the status quo of local government, when a key part of his role is to extract value and accountability from the council and its family or agencies.

"At times I have been in conflict with the chairs and chief executives of those organisations, there have been battles.

"These are not fiefdoms operating independently of council, they are organisations that need to work effectively, and be held accountable and I make no apology for making that one of the clear objectives of my mayoralty," said Mr Goff.

Attempt to get govt to fund more infrastructure

Mr Goff was still determined to get the government to pick up a greater share of the cost of infrastructure in the country's fastest growing major urban centre.

Investment was needed in a light rail network much sooner than the government had signalled, he said.

Mr Goff hoped Auckland would do well with its bid for a large slice of the government's $1 billion Housing Infrastructure Fund - aimed at accelerating the rate of new home building.

It is an important issue, but one that is unlikely to deliver political dividends in the short-term.

Mr Goff's first major test will be the outcome of this year's annual council budget in June.

He is committed to rate rises on average not exceeding 2.5 percent, and needs to get his contested accommodation rate hike through in some form to avoid embarrassment.

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