Council sticks to money making activities policy

Ruapehu Bulletin, Volume 9, Issue 425, 25 February 1992, Page 3

Council sticks to money making activities policy

The council should not be setting up new businesses of its own but should continue to operate add-on revenue generating activities to help offset some of its overhead costs. This was the decision of the Ruapehu District Council last Friday after discussing the issue of council 'revenue generating activities'. The matter was put before the council by the general manager, Cliff Houston, after a number of Taumarunui business people expressed objection to the setting up of a colour photocopy service at the Taumarunui Public Library; the sale of shrubs from the council' s Taumarunui nursery; and the establishment of Ruapehu

Construction Limited. "The assertion has been made ... that Council should not compete in areas where service may be provided by a private business," said Mr Houston in his report on the matter. "In the current climate when some of the initiatives are being subject to public criticism, a clear statement of policy in-' tent from the Council would be appropriate if a departure from current practice is desired," he asked. Mr Houston said there were a number of peripheral and 'logical addons' to existing council services which made money for the council to help offset the overhead costs of some activities. He cited the library

example, where the provision of the colour photocopy service was popular and lucrative and also increased floor traffic in the library, which in tuni led to increased use of other services. "If the services were not provided ... (it) would lead to increased operational costs for the council," he said. Mr Houston apologized to councillors for the embarrassment his decision to set up the colour photocopier service had led to. He said he did not regret the decision and believed it was a sound one, but agreed that better consultation with councillors and the public would have helped avoid the Taumarunui furore.

"Never in my wildest dreams would I have picked that the purchase of a colour photocopier would cause such a reaction," he said. "I did not think it was a matter for public contention." He said none of the council's revenue generating activities were stand-alone businesses. Councillors said they felt there was a need to keep rates down so such add-on activities were needed, but that the council should not be looking to set up standalone businesses. They felt the problem had occurred because of a lack of consultation. "I think we have the right balance at the moment," said Cr Doug Bennett. "We are under pressure to keep rates down and at the same time provide the necessary services."

"If the GM came up tomorrow with a scheme and said "this will make money for the library" I would say 'go for it' - the libraries are at crisis point and they need help if they are to survive," said Cr Ellen Gould. There was some debate over whether such decisions should be taken to the council table, with Cr Cosford suggesting a resolution whereby any expansion of services or any new services be decided in consultation with council. "My brief is to operate the council's activities according to the general policies set by the Council, I've got the message about consultation. If you (passed that resolution) you would be saying 'I have no further scope to make decisions'," said Mr Houston.