First – They messed up the GST ! Then today, the average rates increase isn’t 9.9% - it’s 12.8% and no one at the NPDC knew ?
Wow – what else can you say (politely) but – Wow.
First – they messed up the GST with it not being included in the rates – around $21 million. (We hadn’t mentioned that as we are waiting 20 days to get some answers to some questions on that).
Then today, the average rates increase isn’t 9.9% - it’s 12.8% - and no one at the NPDC knew ? This was picked up in a review being done by Simpson Grierson after the GST failure.
What have we written about with Financial Competence at the NPDC ?
- In 2022 Deloitte’s gave them the worst review they can give because their basic financial processes are totally inadequate - and still are in 2025.
- They failed their 2024 Annual Plan Audit as the budget did not balance.
- Then the GST was missed
- And now, the extra 2.9% average increase in rates because of an error.
All sorts of things are being said by the media this afternoon – but the bottom line is – the people working in these jobs at the Council – from the CEO – the Senior Manager responsible for this area - and the management staff employed to do this part of council work – are not competent in the work they are doing.
Quoted in the articles- “An assumption about average land value and number of residential properties was incorrect.”.
Holdom states “the validity of that information and the assumptions behind it failed.”
For decades and decades setting of the rates have not failed in NZ. Why have they failed this year at the NPDC? Who is responsible to get this right ?
So the average rate increase now needs to be 12.8% instead of 9.9%.
Our low income homeowners were already struggling with the idea of a 9.9% increase. What about the people who are due to have 18% and 25% increases who are at the top of the average ? How much more are they going to be asked to pay ? What are commercial Ratepayers going to be asked to pay – when many businesses are already struggling with less customers out spending ?
Gareth Green is quoted as NPDC needing structural changes. “The systems and processes relied on have let everyone down.”
Gareth Green and the Senior Management staff are the people who set those systems and processes. Those staff earn significant salaries. As Ratepayers and Renters, who are paying those salaries, we expect that these people have the skills, the knowledge and the competence to do their jobs.
Who is doing a review on whether the people in these positions are up to the job they are employed to do ?
Mayor Holdom has stated “he wants an independent review on all future financial plans.”
We say NO. Why would the Ratepayers and Renters of New Plymouth want an additional cost of someone checking if the people paid to do these jobs have got it right ? If they are not capable of doing the job they are employed to do they should not be there.
The NPDC needs to employ people who are competent and can do their job in these positions.
In the real world – if a Senior Manager – or CEO - had got this many things wrong since 2022 – they would not be in their job.
We pay a considerable sum of money for Audit NZ (a government department) to audit our Annual Plan – how the Long Term Plan is tracking over the last year. It is stated in the news that “Audit NZ signed off the LTP with the incorrect rating assumption.”
More questions need to be asked about this situation. We have already instigated one or two questions about the competence of this Council (outside the region) – we will add to that in coming days - and we will let you know what we hear back.
If you want more nitty gritty detail about all of this - the NPDC agenda for the meeting next Tuesday afternoon is here (around about page 12 they get to the detail on this):
https://www.npdc.govt.nz/media/5pwbiyqo/extraordinary-council-agenda-22-july-2025.pdf
Please share this far and wide.
Questions must be asked about what is going on with this Council. And the community needs to be aware that things are not as they should be.
Posted: Thu 17 Jul 2025