Hamilton City Council on notice

Local Government Minister Rodney Hide has put Hamilton City Council on notice. Should progress in addressing the Audit New Zealand’s recommendations be insufficient, the Government will look at a review process that could lead to the appointment of commissioners.

“I am very concerned about the findings of the Audit New Zealand report into the Council’s handling of the V8 supercar races. The report highlighted a number of issues with the Council’s expenditure on the races, governance structures and reporting processes.

“It is crucial for local democracy that ratepayers have confidence in their councils. For that to happen, councils must have the right governance structures and delegations. Councils must maintain transparent and robust decision making processes and act in accordance with the Local Government Act 2002 and other relevant laws.

“I have discussed the issue with the PSA and the local MPs, Tim Macindoe and David Bennett, who share my concerns.

“It was encouraging that Hamilton City Council commissioned the audit report, and that it made the final report public on its website.

“I met with Hamilton City Mayor, Julie Hardaker, Chief Executive Barry Harris and Councillor Martin Gallagher today. The elected Mayor represents the new leadership for Hamilton. She has assured me that the Council is committed to taking action to remedy their practices and restore their ratepayers’ confidence. I support her approach. The entire Council must work with the leadership team to fix the problems. The Mayor has told me that the Council will be looking at options for pursuing any civil and criminal liabilities. I support them in this.

“I have asked the Mayor to report to me on how the Council intends to respond to the Audit New Zealand report and a timeline for action. I and the new Minister of Local Government will be expecting regular updates.” he said.

“Hamilton ratepayers deserve to have this matter fixed, so that we never see this type of failure again.