1 00:00:01,200 --> 00:00:03,560 Speaker 1: So the government has issued its first report card for 2 00:00:03,640 --> 00:00:07,680 Speaker 1: all our councils. Local Government Minister Simon Watts has released 3 00:00:07,680 --> 00:00:11,240 Speaker 1: a document comparing councils on their rates, revenue, debt and spending. 4 00:00:11,840 --> 00:00:14,640 Speaker 1: Five of our councils have more than twice as much 5 00:00:14,760 --> 00:00:18,120 Speaker 1: debt as the annual revenue. So we've decided to talk 6 00:00:18,160 --> 00:00:20,640 Speaker 1: to one and the one we're talking to is Hola 7 00:00:20,640 --> 00:00:24,239 Speaker 1: for Newer and the mayor of Hotafduer is Mayor Bernie 8 00:00:24,280 --> 00:00:29,160 Speaker 1: Warden Wondon who joins you know, Bernie good afternoons. So 9 00:00:29,240 --> 00:00:32,080 Speaker 1: your debt to revenue number is two hundred and thirteen 10 00:00:32,120 --> 00:00:36,400 Speaker 1: point seven percent, so that's pretty high. And what's that about. 11 00:00:37,520 --> 00:00:41,080 Speaker 2: Yes, look it is high. We actually absolutely acknowledge that 12 00:00:41,159 --> 00:00:44,360 Speaker 2: it is high. And in fact these figures are almost 13 00:00:44,360 --> 00:00:47,240 Speaker 2: out of date. This is at during twenty twenty four. 14 00:00:48,080 --> 00:00:50,800 Speaker 2: Our figure at Durne twenty twenty five is actually one 15 00:00:50,840 --> 00:00:53,479 Speaker 2: hundred and ninety seven percent, so it has come down 16 00:00:53,479 --> 00:00:57,040 Speaker 2: a bit. But look, we still acknowledge that our debt 17 00:00:57,120 --> 00:01:03,040 Speaker 2: levels high and that is probably successive years of either 18 00:01:03,280 --> 00:01:09,640 Speaker 2: underfunding depreciation or having our operating expenses more than what 19 00:01:09,760 --> 00:01:13,520 Speaker 2: we were getting in revenue and then borrowing to cover that, 20 00:01:14,120 --> 00:01:17,280 Speaker 2: and that over a number of years meant that we 21 00:01:17,280 --> 00:01:20,400 Speaker 2: were able to keep rates down, but it meant that 22 00:01:20,440 --> 00:01:22,000 Speaker 2: we had to borrow money to do that. 23 00:01:23,319 --> 00:01:26,399 Speaker 1: As a snapshot of just one year really an accurate 24 00:01:26,440 --> 00:01:31,320 Speaker 1: way of determining whether the council's finances because you have 25 00:01:31,440 --> 00:01:35,640 Speaker 1: hangovers from decades of under investment or decades of under 26 00:01:35,959 --> 00:01:39,240 Speaker 1: revenue raising, is it really actually indicative of the financial 27 00:01:39,280 --> 00:01:40,360 Speaker 1: state that you're really in. 28 00:01:42,520 --> 00:01:44,720 Speaker 2: I think over time it will give us good trends 29 00:01:45,520 --> 00:01:48,080 Speaker 2: taking a snapshot. This is the first time we've ever 30 00:01:48,120 --> 00:01:51,800 Speaker 2: done this, so obviously there will be nuances and contexts 31 00:01:51,800 --> 00:01:54,160 Speaker 2: that will not be able to be readen to the figures. 32 00:01:54,640 --> 00:01:56,440 Speaker 2: I think over a little bit of time will get 33 00:01:56,520 --> 00:01:59,960 Speaker 2: used to this and the tables could provide some real 34 00:02:00,160 --> 00:02:05,960 Speaker 2: useful information. We're not certainly against having this sort of benchmarking. 35 00:02:06,000 --> 00:02:07,800 Speaker 2: I think it's great for the rate payer to be 36 00:02:07,800 --> 00:02:11,799 Speaker 2: able to see where your councils sit and amongst you know, 37 00:02:12,000 --> 00:02:15,560 Speaker 2: comparative group, and I'm sure in time it will prove 38 00:02:15,600 --> 00:02:17,239 Speaker 2: to be very valuable. 39 00:02:17,520 --> 00:02:20,320 Speaker 1: Very good stuff. Now the government's talked about rates caps, 40 00:02:21,880 --> 00:02:24,119 Speaker 1: so you know, is that viable if you've actually still 41 00:02:24,120 --> 00:02:25,600 Speaker 1: got this huge debt you have to service. 42 00:02:27,480 --> 00:02:29,200 Speaker 2: Well, it would be helpful if we knew what the 43 00:02:29,240 --> 00:02:33,320 Speaker 2: detail of the rates capping was. In the places that 44 00:02:33,360 --> 00:02:37,480 Speaker 2: we see rates capping, especially in states in Australia and 45 00:02:37,600 --> 00:02:42,760 Speaker 2: parts of the UK, it has caused some real unintended 46 00:02:42,800 --> 00:02:48,880 Speaker 2: consequences that have meant that services have dropped financially, councils 47 00:02:48,919 --> 00:02:53,520 Speaker 2: have been almost at a brink of going bankrupt. So 48 00:02:53,639 --> 00:02:56,200 Speaker 2: you know, there's there's a lot to understand and unpack 49 00:02:56,240 --> 00:03:00,360 Speaker 2: in terms of rates what rates capping means. So you know, 50 00:03:00,400 --> 00:03:01,680 Speaker 2: we just don't know that detail. 51 00:03:01,760 --> 00:03:04,640 Speaker 1: You Well, Bernie, good luck going forward because you've got 52 00:03:04,680 --> 00:03:06,400 Speaker 1: some big debts to have pay down and you've got 53 00:03:06,400 --> 00:03:07,919 Speaker 1: some big work to do and we wish you only 54 00:03:07,960 --> 00:03:09,720 Speaker 1: the best of lack. And that is Bernie Wanden, who 55 00:03:09,919 --> 00:03:11,560 Speaker 1: is the mayor of honafor Neuit. 56 00:03:12,160 --> 00:03:15,320 Speaker 2: For more from Hither Duplessy Allen Drive, listen live to 57 00:03:15,440 --> 00:03:18,480 Speaker 2: news talks. It'd be from four pm weekdays, or follow 58 00:03:18,520 --> 00:03:20,280 Speaker 2: the podcast on iHeartRadio.