Whangarei and Kaipara council leaders will hold
discussions on Wednesday to consider a merger following Kaipara's $90
million debt.
Kaipara District Council has been put on notice by
Local Government Minister Nick Smith over several issues, including the
debt and the illegal collection of $9.5 million in rates for the
Mangawhai community wastewater scheme.
Former Kaipara councillor
Bill Guest has taken an advertisement out in a local newspaper calling
for the council to resign, and Dr Smith has told the council to sort
itself out.
Far North Mayor Wayne Brown has called for Northland
authorities to consider amalgamations, suggesting Kaipara be split
between Whangarei and the Far North.
Kaipara Mayor Neil Tiller was
not in favour of a merger with the Far North but said a deal with
Whangarei which didn't involve splitting the current Kaipara district
was worth considering.
A Whangarei District Council spokeswoman confirmed talks between the two councils would be held on Wednesday afternoon.
Dr
Smith has given Kaipara until the end of April to sort out a way
forward over financial reporting, debt management and infrastructure
funding, rating and issues over the Mangawhai wastewater treatment
scheme.
"There's no question that the Kaipara District Council's in pretty serious pickle," he told Radio New Zealand.
"I
am not ruling out the pretty potent powers, albeit in my view they are a
last resort, and that is replacing the council with commissioners, but
my strong preference is for that community to sort out its own woes."
Dr
Smith said Whangarei ratepayers wouldn't have to pay any of Kaipara's
debt if there was a merger, but Kaipara ratepayers could benefit through
other efficiencies.
NZN