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

 

New Plymouth Council’s 2020 Vision

Council’s 2020 Vision

Prudent reinvestment of proceeds from the recent sale of Powerco shares could enable New Plymouth District Council to abolish general rates by 2020.

Chief executive Rodger Kerr-Newell says the Perpetual Rates Reduction Fund (where the Powerco proceeds will be held) can provide increasing annual returns, enabling the council to remove the current level of general rates within 16 years.

Mr Kerr-Newell says: “We’re setting our sights high on this one but when you do the maths it’s definitely an achievable goal.

“At present general rates make up around $45 million per year – some $20 million from investment income and about $25 million from ratepayers.

“Our advice, and we have some of the best available in the country, is that the Perpetual Rates Reduction Fund is capable of producing gross earnings of 10.65 per cent per year.

“On the $259 million Powerco proceeds, this would achieve a return of more than $26 million in the first full year of investment – i.e. a $6 million surplus on our current $20 million investment income.

“This $6 million would be added to the fund and, assuming we maintained the same levels of return going forward, this surplus would increase year on year.

“By 2020 we could have a fund of $590 million – and this is the point at which, if the council chooses, it would no longer need to ask the ratepayer for the annual $25 million worth of general rates money.”

John Armstrong, chairman of New Plymouth Equity Advisors Limited, the council’s investment advisory body, says: “This is a very worthy objective and a goal that in the present climate is eminently achievable.”

NOTE: This news release refers to general rates. Uniform annual charges (UACs) for water, refuse and sewerage services would still apply. Currently these charges are $209, $43 and $270 respectively.

More… A typical ratepayer, paying his/her current general rate plus all three UACs, is now paying overall rates of around $1,250 per year. Therefore, using current figures, removal of the general rates would see their total annual bill cut by almost 60 per cent.

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Supreme Court: Worksafe Decision On Whittall Pike River Prosecution Unlawful

The question in issue on the appeal was whether WorkSafe New Zealand acted to give effect to an unlawful agreement of this nature when it offered no evidence on charges against Peter William Whittall for breaches of the Health and Safety in Employment Act 1992...

The Supreme Court... has found that the decision to offer no evidence was made under an unlawful agreement to stifle prosecution. It has granted a declaration to that effect. More>>

 

Cullen To Chair: Tax Working Group Terms Of Reference Announced

Finance Minister Grant Robertson and Revenue Minister Stuart Nash today announced the Terms of Reference for the Tax Working Group and that the Group will be chaired by Sir Michael Cullen. More>>

ALSO:

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>

ALSO:

Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>

ALSO:

Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>

ALSO:

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election