RWSS Investment Risky for Ratepayers

It is of concern that the business and investment case for the RWSS highlights the risk of increased rates for ratepayers.

The case indicates that there may be a shortfall of $3,150,000 in dividend income from HBRIC in the 2014/16 years because these funds are required for RWSS. When taken with the loss of $1,700,000 in annual income following the sale of income stream generated from its leasehold properties HBRC is going to have to make up $6,550,000 in lost revenue in the 2014/16 years.

“This report tells me that there is going to be a significant funding shortfall for the Regional Council which is going to have to be made up by either increasing rates, or decreasing services” said Paul Bailey, Green Party candidate for Napier.

“I am also very concerned that if uptake does not meet target, or if construction costs go over budget, then our port is going to be put at risk. HBRIC has no other assets that it can used to secure debt and if the scheme turns out to be a lemon the people of Hawkes Bay could loose their jewel in the crown” said Mr Bailey.

Press Release to Napier Mail 26/3/14

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