If you knew anything about TCC you would already know anyway. Mayor Tenby Powell stated it regardless so hence the desire to hike rates which then allows more borrowing and spending. Is that at all prudent as New Zealand heads to a recession?

TCC debt heads for records levels, rates are the highest in New Zealand and the extensive range of frivolous spending surges forward as if there was no limit. However, the TCC debt is actually a lot worse than acknowledged even by the Mayor. Included in the rates paid currently is some $50-million annually towards asset replacement. That sum is called ‘depreciation reserves', as at 30/6/2019 there was $132.2m collected and unspent. That money has not been put aside, instead it has been used to reduce debt… Result, at 30/6/2019 TCC reported $458.6-million on debt but that should be $590.8-million.

Result, at 30/6/2019 TCC say it's debt ratio is 176 per cent with a limit of 250 per cent (last-year 225 per cent) but when corrected for the above and other short-comings (per Standard&Poors) it is actually 263 per cent and set to rise a lot more soon. The numbers look to be fudged to allow the relentless borrowing to continue and that will only force rates up even more.

I Stevenson – Tauranga