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3.2% Inflation a Warning to Councils

NoMoreRates
THE nationwide CAMPAIGN TO REPLACE THE PRESENT SYSTEM OF COUNCIL RATES WITH A FAIRER SYSTEM which reflects ability to pay and value for money.


MEDIA RELEASE

Statement from David Thornton –Founder/organiser NoMoreRates campaign.

18 Jan 2008


3.2% Inflation a Warning to Councils to Concentrate on Basics.

Removing Gst Would Bring Short Term Relief.


The latest inflation figures reveal that council rates have risen by 6.7% in the year to December.

This percentage increase is the second highest in the list of items making up the Consumer Price Increase [CPI] – only Petrol has risen at a higher percentage increase.

For several years the Reserve Bank Governor has been warning local councils that rates increases are contributing to inflation and that council spending must be brought under control.

At this time of year councils are well advanced into setting new rates for the 2008/9 year – and some hard decisions on non-essential spending must be made.

Council must concern themselves with the basics –especially water supply and sewerage disposal, both of which are potential threats to the health of residents and ratepayers.

New parks and leisure facilities will have to be put on the back burner until new funding methods are found to replace the present unfair rates system.

Central Government could give some immediate relief by removing GST charged on rates bills.

ENDS

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