Tuesday, October 20, 2009

Effects of Govt's latest transport changes (Dave's report to Council Transport Committee, October '09)

The Government’s September announcement of transport funding streams for the next 3 years – made through the NZ Transport Authority – will cause Hamilton City serious funding shortfall problems in some areas of transport delivery.

There are significant bus fare increases being brought in as a direct result of cuts to previously indicated bus operational subsidies, and also the proposed axing of a number of cycling and walking projects we had approved in our LTCCP over the next 3 years – again as a result of direct cuts to subsidy funding that was previously available.

The Government has made available only a 3% cost increase to EW for bus services in the current year – when normal costs for existing services (i.e. no new services included) are predicted to rise by 7%. Future years will receive no increases at all. As a result EW is proposing to increase main bus fares from December 2009 by between 12% and 30%, with further significant increases being planned for July 2010 and July 2011. None of the planned new services will be able to be introduced, including connections to new suburbs, and some existing services are under threat.

The shortfall in the amount needed to meet the normal bus operations EW had predicted for Hamilton is only a few $million over the next 3 years, while at the same time $billions of new money has been allocated for s State Highway upgrade that will help Hamiltonians reach the Auckland Motorway traffic jam 5 minutes earlier. The fantastic growth in bus patronage that Hamilton has experienced in the last 5 years will be in jeopardy as a result of this short-sighted policy.

More than half of our planned cycleway and walkway/cycleway projects over the next 3 years will have to be either delayed or completely scrapped as a result of no subsidy money at all being made available for them. It is likely that all of the projects we do undertake over this time will be through 100% ratepayer funding.

At the same time, the community transport work, such as the organisation and promotion of the successful walking school buses, has only received guaranteed funding for the current year, with nothing yet allocated for the following two years and a review into that whole area of work being conducted.

It is reasonable for Governments to cut their cloth according to their means – if you haven’t got the income, you have to be financially careful. But to significantly increase spending in the very largest area of expenditure, while hacking at the rats and mice that in some communities – like Hamilton – can make a real difference is, as the old adage suggests: “penny wise and pound foolish.” The Government’s spending decisions show a philosophical bias that will make it very hard for Hamilton to implement its transport strategies, and will cost us in the long run.

Thursday, August 20, 2009

Sky City to give half its profit increase to community & sports groups (Yeah, right!)

Sky City’s $2.5 million Hamilton Casino profit increase in the year just completed has given rise to a call from a gambling issues lobby group for the community to “get a significant share of the windfall.”

GamblingWatch co-ordinator Dave Macpherson said the 7% local profit increase “ought to generate considerable extra support for local community and sporting groups who are really feeling the pinch of the economic recession – but knowing Sky City, it probably won’t help them beyond the cost of a new car if they’re lucky!”

“A reasonable person might think that Sky City could afford to give half is extra gambling profits back to the community from which the money had been earned,” he said.

“Think what the Waikato region could do with an extra $1.25M in the next year – maybe doubling the food supplied through every foodbank in the region, or keeping the costs of gym and field hire at the 2008 levels for all kids sports teams, so more youngsters could afford to play sport, meeting the Government’s plans to increase sporting participation among the young?”

Mr Macpherson pointed out that Sky City’s licence only required it to give a “miniscule proportion” of its $38.9M Hamilton profit back to the community – somewhere between two and three hundred thousand dollars per year.

“This amount is less than the grants going to the community from one single pokie bar in the same city.”

“We would like to think that Sky City would see it had a responsibility to significantly support the community when it was doing well – but we are not holding our breath!”

“However, in the interests of giving everyone the benefit of the doubt, I challenge Sky City management to focus on giving, rather than profiting, during this economic recession.”

Mr Macpherson said the same calls applied to all other Sky City-controlled casinos around New Zealand – In Auckland, Christchurch, Dunedin and Queenstown.

“Their 13% group profit increase to $115.3 million gives Sky City a perfect chance to show what a good corporate citizen they are in several parts of the country.”