Accountants concerned at salary package

Ruapehu Bulletin, Volume 6, Issue 280, 28 March 1989, Page 2

Accountants concerned at salary package

We were concerned to read recent advertisements for the new Manager's position for the Ruapehu District council at a salary of $90,000 including benefits. It has now been clarified that the salary is a maximum income and will include cash incentive benefits. We are at a loss to understand how these could be calculated. We believe that even this lesser salary package is too high and are concerned that if salaries of this level are to be paid, the effect on rates that must flow through. It follows that if Council is prepared to pay the District Manager a salary to this level then other senior staff such as the Town Planner, Engineer, Treasurer, etc will also be paid salaries in proportion to their responsibilities but it would be safe to assume, not far below. Policy Our concern would be that the Administration Manager's duties would appear to rest largely in implementing policy set down by elected council and ensuring the smooth transition for the amalgamation. As such, this person would hardly justify a salary to a $90,000 level unless his brief is to streamline the administration of the District Council and ensure its administration function does not overburden the ratepayer. When this firm actually administered the boroughs of Ohakune and Raetihi the administration costs were significantly lower compared to per head of population to the administration costs they are now incurring. When we terminated our administration some ten years ago we were employing within the two boroughs approximately three fulltime staff equivalents. The County was also employing three people at that time. Activity in the two boroughs was starting to increase at that time. With the amalgamation and the quieter level of economic activity in the district, we believe that the maximum staff that should today be employed would be five fulltime equivalent administration persons. Savings Clearly, this is not the case. We are greatly concerned with the additional amalgamation that similar savings in administration will again not be achieved

principally because nobody tries to achieve them. This is an ideal opportunity for a radical re-think of the costs of administration to be implemented and that cannot be achieved by merely continuing with an amalgamated status quo. Worth it Therefore if the new District Manager is capable and able to achieve these economies, he will be worth every cent of this apparently high salary. If he merely continues with some form of the present separate administrations being loosely grouped into Taumarunui with the suboffices in the Waimarino and Waiouru, then we as the ratepayers, will obtain no benefit whatsoever from the amalgamation

and indeed as is happening at present, face increase rates because of Council's reluctance to face reality. Unless councillors start with the attitude that savings that can be made must be made and will be made, then increased costs are inevitable. We challenge the Council to bear in mind the economies of the time to run their business prudently and to run it to make a profit. We do not believe that this can be done if the Council is going to pay salaries to this level and not substantially reduce staff. We believe it is time the Council came clean and advise what their staffing and cost structures are going to be.

Peach Cornwall and Partners