30 March 2006

Rodney Hide's Council Rates 'Capping' Bill Gives A Glimmer Of Hope To Ratepayers

Rodney Hide's Members Bill aimed at 'capping' council rate increases relative to the level of inflation will give some hope to ratepayers across the country - particularly as many councils are forecasting significant rate increases over the next ten years.

Because of property revaluations taking effect this year many ratepayers in the Auckland region will find they are facing substantial increases from both their city council and the regional council.

The Local Government [Rating Cap] Amendment Bill deals only with the level of inncrease which councils may apply in any year.

The Bill does not deal with the root of the problem which is that levying taxes on the basis of estimated property values is no longer sustainable.

A report on alternatives to rates as the prime source of local council funding was promised last year and is now long overdue.

Meanwhile I am urging all parties in Parliament to support a First Reading of the Bill so that it can go to a select committee where ratepayers and interest groups will be able to have their say on a wide range of rating issues.

ENDS

© Scoop Media