West Coast Regional Council headquarters at Pāroa near Greymouth. The council has a tiny rating base but a huge area, more than 650km long for a region with just 32,000 people. Photo: Local Democracy Reporting/ Greymouth Star
West Coast Regional Council staff have been directed to take action on a debt problem, including outstanding rates.
It emerged on Tuesday the council is carrying significant debt from money owed by government departments. The details, including the amounts, were not disclosed publicly.
However, councillors agreed a detailed three-step policy addressing debt needed more work.
Councillor Frank Dooley, a chartered accountant from Westport, said the draft process was a start.
But he said a suggestion by staff that it would be "unjust to apply" the proposed new debt policy to rates debt before 1 November this year was "not acceptable".
"I just don't agree with that statement - we need to apply all debt collection processes across the board," Dooley said.
"If you are not continuously processing invoices and keeping the debt before ratepayers, we have a problem.
"We can't let debt sit forever … debt has to be paid and we have to have a legal action. If you are asking ratepayers to enter into a repayment plan … there has to be a policy. That repayment plan must be completed within the rating year."
Chairman Peter Haddock agreed.
"I think (the draft policy) is a bit weak. We're running a business here. If you look at other councils, if you are a day over, you get a penalty."
However, it was also a matter to "work with ratepayers" on payment plans, he said.
A distance graphic often included by the West Coast Regional Council with submissions to Wellington illustrating the unique challenges the region has, with 84 percent of its area non-rateable due to Crown administration, and an administration area the distance between Auckland and Wellington. Photo: Supplied via LDR
Councillor Peter Ewen noted an appendix to the discussion paper before councillors extended to "other debt" owed by government departments.
"I'm concerned … they don't pay on time. It's pretty sloppy when government departments can't pay up promptly. This is causing this council quite a few problems," Ewen said.
Dooley said all debtors - no matter who they were - should be treated the same.
Chief executive Darryl Lew said: "A large proportion of our aged receivables are not in the rates category, they're with other debtors ... I would like to escalate our activity on other debtors."
Councillor Allan Birchfield, a seven-term councillor, said the regional council used to receive a list of debtors each month.
"For some reason that has stopped. It was just a list," Birchfield said.
Lew said he proposed returning to that practice.
Ewen said: "Front and centre is the government departments, not the ratepayers of the West Coast."
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air
