Big council dept defies overspending prediction

Press, 6 February 1986, Page 7

Big council dept defies overspending prediction

In spite of predictions that the Christchurch City Council will overspend its budget by more than $2 million this year, its big-gest-spending department is confident that it at least will not. The City Engineer, Mr John Ince, emphatically told councillors yesterday that the works and traffic department — easily the council’s largest spender, with a budget of $33 million — would not overspend. Earlier this week, the chairman of the council’s policy and finance committee, Cr Matthew Glubb, predicted that council spending would exceed

the budget by more than $2 million, because of salary increases. The council budgeted for a 10 per cent increase in salaries and wages from November and set aside $1,543 million to cover this. However, the increases were nearer 30 per cent because of the State linkage and would cost $3,569 million for the five months from November to the end of the financial year in March, Cr Glubb said. Cr Glubb made public the overspending in a debate about electricity transfer, saying that the council would need the extra income it had

received from interest, including that on M.E.D. funds, to balance the books. Councillors at the works and traffic committee meeting yesterday asked what provision had been made within that department’s budget for higher salaries. Cr Alex Clark wanted to know what reductions in expenditure had been made to cover the higher wages bill. Mr Ince replied that the department would not overspend on its 1985-86 budget. After the meeting, Cr Clark said he was disturbed that the council’s

committees were not taking immediate steps to reduce or hold expenditure to meet the extra wages costs. “I am deeply concerned that Cr Glubb has publicly commented that the City Council will overspend by approximately $2.25 million,” he said. “But what concerns me more is that in the knowledge of this, council committees are not taking immediate action.” Either Cr Glubb was incorrect or “the Citizens’ council” was acting “most irresponsibly,” he said. Other councillors at the meeting said that they did not know how the works

and traffic department would meet its budget if it had to pay significantly, higher salaries costs. The chairman of the works and traffic committee, Cr Maurice Carter, said that a report on the effect of the higher salaries on the council’s budget would be presented to Monday’s policy and finance committee meeting. , That meeting was the place to discuss it, he said. “Then why has Cr Glubb already made a public statement about it?” asked Cr Clark.