The Variable Estimates of the LGC

What confidence can citizens have in the cost and savings estimates published in the draft proposal?

The graph below shows how three estimates have changed considerably in the documents the LGC has published.

Chart of estimates from the LGC - 2014, 2016, 2017

The LGC published documents in 2014, 2016 and 2017 in relation to reorganising local government in Wairarapa. Those documents showed the following information:

  • the estimated IT costs to integrate the three councils IT systems into one
  • the estimated financial benefits of amalgamation
  • the transition costs (which comprise the IT costs plus other costs)

IT Costs

  • 2014 $25.5m - based on the mid-point of estimate of $21m-$30m from a study conducted by Deloittes
  • 2016 $10m - based on an estimate produced by the LGC working group
  • 2017 $2.3m - based on a report produced by Morrison-Low February 2017 from quotes received from the supplier of the core system used by the councils (MagiQ)

Savings

Transition Costs (less IT)

Note: A future blog post will examine the 2016 Consultation documents and detail the sources of the 2016 figures.

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