Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


New Legislatiion May Cost Ratepayers Millions


New Legislatiion May Cost Ratepayers Millions In Lost Revenue.

Statement from David Thornton

NEW TRANSPORT FUNDING LEGISLATION MEANS A REDUCTION OF $129 MILLION OVER NEXT THREE YEARS IN FUNDS FOR TRANSPORT AND STORMWATER.

Ratepayers in the Auckland region are about to be ripped off by new legislation which comes as part of the so-called 'Transport Package' of additional funding from the Government.

When the Government announced on December 12 its $1.6 billion 10 year funding plan to help solve Auckland's traffic problems it also stated that funding was conditional, on new governance arrangements for Auckland.

That legislation, the Local Government (Auckland) Amendment Bill 2004, submissions on which close today, includes, according to ARC tax advisers, provisions which could reduce, by millions of dollars, funds available at the moment from Infrastructure Auckland [IA].

IA's income dividend from its 80% shareholding in Ports of Auckland is currently not subject to income tax. Under the new legislation, these shares are transferred to the new Auckland Regional Holdings [ARH], making Ports of Auckland a subsidiary of ARH - whose dividends would not be exempt from tax.

In addition the new legislation requires that the ARC needs to spend only 85% of its income from ARH on transport and stormwater - as compared with the current situation where 100% of net income is for transport and stormwater.

The tax situation and the 85% rule, together, mean that over the next 3 years a substantial amount of transport funding will be lost to Auckland.

Infrastructure Auckland's current Long-Term Funding Plan forecasts dividends from Ports of Auckland of $263million over the next three years - only $134 million of which will be available for transport and stormwater - a net loss to ratepayers of the region of $129 million, or almost 50% down on what would have been available from Infrastructure Auckland under the present structures.

This would be a raw deal for ratepayers who might have to make up for this loss with higher rates.

This loss must be prevented by changes to the Bill during its progress through Parliament.

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Wellington: Predator Free Capital Plan

Wellington City Council (WCC), the Greater Wellington Regional Council (GWRC) and NEXT Foundation, today announced a joint collaboration to make Wellington the first Predator Free capital city in the world. More>>

ALSO:

Gordon Campbell: On Judith Collins’ Efforts At Self Correction

Thousands of prisoners currently in prison may be entitled to an earlier release than expected – and compensation – because Corrections has incorrectly calculated their term of imprisonment. Unless of course, the government buries its mistakes by changing the law and retro-actively getting itself off the hook… More>>

ALSO:

More Justice & Corrections

Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news