Super City staff costs $91m a year lower

The Herald reports:

The Super City will open for business on November 1 with 1223 fewer staff than the existing councils and their business units, leading to a $66.5 million cut in the annual wage bill.

The agency designing the Super City has trimmed staff numbers from 9430 staff a year ago to 8207. …

The agency said staff numbers would drop by another 300 when people employed to bed down the Super City completed their work by July 2012.

This would lead to a $91 million overall reduction in the wages bill to $513 million by mid-2012.

This is good news for Auckland ratepayers. Obviously not great for those losing their jobs, but reducing costs on ratepayers will lead to greater economic growth and more jobs in the private sector.

The chances of cost savings from fewer staff leading to lower rates appear remote.

None of the main Super City mayoral candidates or political tickets are promising lower rates from the savings and efficiencies expected from the reforms.

As well, setting up the Super City has cost $200 million, which will be borne by ratepayers.

Which is around the first three years of lower staff costs only. After that rates should be lower than what they would have been under eight different Councils.

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