The concept of the Tragedy of the Commons relates to the days when farming villages shared common grazing lands for all of their livestock.  Wealth related to the number of cattle, sheep etcetera that one owned.  And since the grazing land was “free” it cost the individual villager very little to add an extra cow or sheep; everyone shared in the cost of maintaining it.  So the incentive was for everyone to add as many animals as possible until at some point the land became over-grazed and would support nothing.... and everyone lost their livelihood… the tragedy of unwise use of the commons through failure to collaborate for the common good through the pursuit of individual agendas.

Are we about to experience such a tragedy in Whangarei District as a result of the Council’s proposed Annual Plan and its cumulative affects on our future well being? First let’s take a quick overview of the 2007/2008 proposed Annual Plan:

There is a 10% increase over the Long Term Council Community Plan (LTCCP) in expenditure for paying interest on public debt; an increase to $8.2 million over the coming year.  This debt is further expected to increase another 24% by the end of the 2007/2008 year to sit at $124 million for which increased interest must be paid in subsequent years.  Fixed assets (property) sales are projected increase from $2 million to $5 million to cover part of the budget.  However, funding annual budgets out of fixed assets can only result in future financial problems due to reduced future income from rents… a direct parallel to the over-grazing of the commonly held pasture.  This is further aggravated by the fact that the commonly owned investment properties are currently recorded at a value of $42.5 million rather than the overly optimistic $52.2 million stated in the LTCCP.  Budget surplus is scheduled to decrease from $6 million to $3 million dollars thus providing even less cushioning for contingencies such as the recent flooding.  With investment property income projected to decrease by 15% and ratepayer cost of services expected to average a 14% increase, it is clear that the burden of operating costs are shifting more and more onto rate payers’ shoulders. 

Incomes are not rising at the same accelerating rate of increase as the burden being shifted.  Many people are on fixed incomes.  With the present process of putting more and more onto ratepayers’ shoulders there will come a tipping point at which they can bear no more, just as the common pasture becomes over-grazed, leaving people with a damaged infrastructure and severely diminished prospect for continued well being.

What is the solution to this ongoing problem?  We can learn from other communities that have recognised and addressed it!  In the long term, for example, Wanganui has planned for rate rises over the next 10 years to be no more than the rate of inflation, projected to be about 3% this coming year.  Mayor Michael Laws admits that it requires some tough decisions, but realistically speaking it comes to a point where “there are areas we can’t justify… It may be desirable but it’s not essential.”

And for the forthcoming 2007/2008 year, here are my thoughts, based on Council’s currently proposed Annual Plan:

20/20 Vision – CBD

High Priorities - Essential

• Stormwater Recent flooding of CBD in March storm (second time this has happened) – highlights the need to address stormwater as a high priority, and should not be deferred due to budgetry constraints, as happened this year.
• Wastewater rehabilitation/Renewals, CCTV & smoke testing contract: Recent flooding of CBD in March storm (second time this has happened) – highlights the need to address Wastewater rehabilitation/Renewals as a high priority, and should not be deferred due to budgetry constraints, as happened this year.
• Alterations to Walton Street – first priority should address the left-turn into Pak’N’Save carpark which obstructs traffic turning into Walton Street from Dent Street.
• Northern Regional Council building at Town Basin continues to stand empty; this needs to be turned into a revenue-producing property, or the building should be sold immediately.
• North-bound traffic obstruction on Dent Street. Need for a second north-bound lane on Dent Street, from Walton Street to the intersection.

Low Priorities – Desirable, but not essential:

• Make it easier to walk and bike to relieve traffic; maintenance of footpaths: improving the surfaces of footpaths and the transition from footpath to road; consider removing street furniture from them, for the benefit of those using push-chairs, wheel-chairs, and mobility scooters.
• Put lower priority on Tarewa Road/Walton Street streetscape improvements. Masts and flags, etc. ($850,000 added to contingency fund).

General

• Attention to maintenance of roads - reducing the high number of man-hole covers that are not aligned with the seal.
• Investigation of Pohe Island Road crossing.
• Seek independent review of Quarry Gardens performance before the granting of extra operational grant. Likewise with the delivery of the Clapham’s Clock museum function; this is a National museum with world-class potential for attracting tourists.  Both of these attractions should have long term plans targeting self-sufficiency for funding to relieve ratepayers from the burden.
• Desist with using $200,000 of ratepayers’ money to dredge the Hatea Channel. Concur with NRC’s proposal to investigate likely options to fund this. With a large waiting list for berths, the market would indicate an ability to charge users.
• Council administration – submit that Council urgently explore ways to reduce internal administration costs, eg Maori Liaison Department – is this essential, or desirable?
• Rate rises to be set at a rate that is affordable to residents - it requires some tough decisions, but realistically speaking it comes to a point where “there are areas we can’t justify… It may be desirable but it’s not essential.”
• Debt. 24% increase in debt is outrageous.
• Finally, add funding to investigate when and how it is appropriate to use binding referenda to enhance inclusion of rate-payers in the decision-making process.

With an average 23% rate increase last year and another 14+% plus a 44% increase in separate rubbish collection fees this coming year, it is quite clear that a tremendous burden is being added to the ratepayers’ ability to support the common good.  We must not let the Tragedy of the Commons happen here.  The Whangarei District Council motto of “Creating the Ultimate Living Environment” implies an “ultimately wonderful” place to live, but could turn into an “ultimate nightmare” if we keep on adding animals/projects to an already stressed pasture/ratepayer capacity to sustain long term common well being.