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


Mayor Statement for Greypower Public Rates Meeting

Statement from Mayor John Law
for Greypower Public Rates Meeting
Friday 11th August 5:15PM

For the last 4 years I have been quite vocal in the need to change the way Local Government is funded.

The fact of the matter is that the rating system is out of date and incapable of funding all the infrastructure requirements that are required in today’s world. The Government over the last year or two has announced extra pots of money to which Local Government can apply for extra funding, for example $1.62billion for transport followed by a further $684million and $500million; $150million for drinking water for villages with a population of 5,000 or less; $35million for wastewater and approximately $150million for economic development. The very fact that these funds are being allocated confirms that the rating system is inadequate.

Councils have to fund for depreciation of the assets, inflation and the cost of borrowing. Borrowings have an intergenerational impact so that today’s ratepayers are not fully impacted upon. These three aspects alone that need funding will account for 10% rate increase for most councils and even then they are virtually standing still because councils need additional funding to cope with the demands on infrastructure from growth.

The problem is that when rate increases are expressed as say a 10% rise that this is an average rate increase and some people may go up 5% and others 25%.

Ratepayers have had enough of this system and we have to challenge the whole process. I am advocating for example that roading is removed from rates. Why should ratepayers be the only people paying for roads? Roading should not come out of rates but go on the cost of petrol so that road users are paying, that would lower our rates by approximately 32%.

In addition, we should increase GST from 12.5% to 15% and then there will be no need for rates at all and everyone in New Zealand through the sales tax system would pay for infrastructure including tourists. Our innovative rates postponement scheme is a very helpful instrument for delaying the impact of rates but really its the rating process itself that must be challenged.

We have been successful in so much as Local Government New Zealand set up a working party with Treasury to look at rates but I don’t believe that the recommendations will be radical enough. As far as RDC is concerned, we are trying to be as efficient as possible but the pressures of being one of the fastest growing districts in New Zealand is making it very difficult for our ratepayers and staff.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


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>>


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>>


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>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news