Far North public debt trends down

The Far North's public debt is tracking nearly $16 million below expectations as a result of cloth-tightening initiatives in the face of the tough economic conditions across New Zealand.

Mayor Wayne Brown now expects external council debt to be close to $112 million at the end of the current financial year (June 30), down from earlier projections that public debt would reach nearly $128 million this year.

"This lower level of debt will track through into the 2011/12 Annual Plan  which means in 12 months time our external debt will be down from earlier projections of $126 million to around $120 million," he said.

However the figures could not yet be set in concrete. The end of year figure for this year (June 30) was still dependent on whether or not contracts currently in place were completed over the next few weeks.

"The projected public debt at June 30 next year is also dependent on what capital works remain in the budget after the council deliberates on the public submissions received this year.

"It will also depend on just how much work we can get through over the next 12 months. Historically we have tended to carry forward around $5 million a year in uncompleted works and the debt figure will also move if there is any variation to this pattern," he said.

Mr Brown said the huge change in the current year's projections were as a result of a $4 million better than expected final result from the previous year with the balance of the debt reduction coming from cancelled projects or projects being carried forward.

"I've consistently said that if we can't afford to do the work without increasing debt, then the work will not be carried out. This policy is now finally beginning to bring about the right results.

"Virtually the only capital expenditure from loan funding over the next 12 months will be to meet commitments already made, such as the funding promised to the Te Ahu project," he said.