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Tuesday
Sep032013

'Internal Debt'

I mentioned 'internal debt' in my previous post. I believe that the current definition of this as 'non-debt' distorts TCDC's accounts to the point of absurdity. Were it included as 'real' debt, it would place our Council as one of the most indebted in the country, rather than in the middle ranks as Leach likes to brag. It is convenient to ignore it  of course, but the chickens will eventually return to roost - probably during the next iteration of Council. The difference between $3,000 per ratepayer and $5,000 is substantial, and significant.

If elected I will seek an immediate review of this policy - one that has been ignored by Audit NZ and all the other advisors over time. In fact, you cannot even find mention of the $50m borrowed internally in the TCDC accounts - simply in the narrative. It has existed for years, is linked to the borrowing undertaken to pay for the Eastern Seaboard waste-water plants, and distorts the level of debt admitted to when such debt is compared to that incurred by other local bodies.

I have argued consistently for its inclusion as 'real' debt since first elected on the grounds that eventually, the assets that have been depreciated, and borrowed against will need to be replaced, and the money found. All to no avail - it seems pretty simple to my simple mind.  

 

 

 

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