The cost of the super city

The Herald has put together an estimate of the cost of building the Auckland super city – $81 million and rising.

The figure is made up of $34.4 m for the Auckland Transition Agency, $26.5 m for the new water company, and $20.1 m worth of work being done by the Councils.

My guess is this is the tip of the iceberg. It includes only $17.5 m for managing the information technology change over. Industry estimates put the bill at many times that, but the Transition Agency has decided to put in place a much cheaper work-around and leave the job of integrating eight IT systems for the Auckland Council. How many other integration projects will be left for the Auckland Council to implement and pay for?

My prediction? The final cost will be closer to the upper end of the Royal Commission’s projections: $240 million.

The only thing we know for certain is that Aucklanders are going to pick up the tab for this. They didn’t ask for it but they are going to pay for it.

There is a two year moratorium on rates increases, but like the moratorium on asset sales this is a device to protect the Government from political fallout until after next year’s election. When the full size of the debt being dumped on Auckland is revealed, and when rates start to spiral, it won’t be pretty.

And by the way, why is it that a full year after John Key announced his plan to “Make Auckland Greater” his Government will not give Aucklanders any kind of projection of the costs of the transition?

It is no wonder Rodney Hide didn’t return the Herald’s messages about this story.