Councils were warned yesterday they would not find it easy to get financial assistance from the Government to ease fears of having to struggle under a mountain of infrastructure debt.
Acting Prime Minister and Minister for Finance Bill English, in Queenstown, threw cold water on the hopes of a group of five councils, including the Queenstown Lakes District Council, for financial assistance to offset increasing debt burdens.
"It is not going to be easy to get money for local body infrastructure projects.
It is a hard road ahead," Mr English warned, when interviewed by the Otago Daily Times.
QLDC, as one of five "growth" councils alongside those of Tauranga, Rodney, Western Bay of Plenty and Hamilton, commissioned a report on how to plug funding gaps, possibly through Government grants or loans.
Earlier this week the QLDC, in its 10-year council community plan, raised concerns that at the end of the next decade debt would almost treble to $413 million, prompting plans to postpone $187 million in spending.
The QLDC needs more infrastructure spending because of the region's population growth prospects, but the relatively small scale of its ratepayer base makes borrowing necessary.
Part of that spending will be on a Government directive covering water quality improvements, which councils must comply with.
On the water issue, Mr English said both local and central government had infrastructure needs and "had to work together".
Mr English said representations should be made directly to Local Government Minister Rodney Hide.
Water quality was likely to remain an issue for some time regardless of a council's individual growth prospects.
Also, the poorest would be required to raise funding to comply with the Government directive.
Queenstown Mayor Clive Geddes said earlier in the week while it was important to work within current legislation, talks would be ongoing with the Government on ways to mitigate future funding risks.
