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

 


OAG report contrasts with justifications for new law

OAG report's findings contrast starkly with justifications for newly enacted local government reform legislation


MEDIA RELEASE


Facts in OAG report good news for ratepayers and communities

6 December 2012

A report tabled in Parliament today by the Office of the Auditor-General states that local authorities are managing their debt effectively and investing in activities that will result in only modest rates rises.

The report, Matters Arising from the 2012 to 2022 Local Authority Long-Term Plans, states that councils’ “direction of travel is positive.”

It notes councils’ financial strategies in their Long Term Plans (LTPs) are characterised by:

• reducing or deferring spending
• stabilising or reducing overall debt.

Regarding rates, it is noted that “the year-on-year movement is on average five per cent (for Auckland Council the average is 6.1 per cent and for all other local authorities the combined average is 4.3 per cent).

“The findings are in stark contrast to the justification for the recent Local Government Act 2002 Amendment Bill, which has just received the Royal Assent. The Bill was introduced in response to a perceived crisis in the way councils manage their finances,” says LGNZ President, Lawrence Yule.

“The sector continually seeks efficiencies and savings and the audit process will always focus a Council’s attention on this approach. This report shows that these improvements are being made.”

Although the report also highlights the challenges facing councils in funding infrastructure, it states “overall, local authorities are planning to live within their means.”

Debt when used wisely can be a way of spreading the costs of infrastructure over a period of time.

“A recent factual report from the economics consultancy, NZIER, stated that local government debt is well below internationally benchmarked maximum levels. This OAG report reinforces the views of economic studies,” Mr Yule says.

“We are pleased that the OAG stated local authorities are preparing financially prudent Long Term Plans. This is evidence that councils are responding to their communities’ needs in a responsible manner.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Mt Eden Prison: Serco Inquiry Extended

A two month delay to the Government investigation into prison fight clubs shows the extent of problems within the Serco circus, says Labour’s Corrections spokesperson Kelvin Davis. More>>

ALSO:

Health And Safety: Late Addition Of National Security Provisions A Concern

The New Zealand Law Society has expressed its significant concerns at the last-minute addition to the Health and Safety Reform Bill of provisions for a closed material procedure for court proceedings where national security is involved. More>>

ALSO:

Rugby And Beer: World Cup Alcohol Bill Passes

ACT MP David Seymour’s Sale and Supply of Alcohol (Extended licensing hours during Rugby World Cup) Bill completed its third reading by 99 to 21... More>>

ALSO:

Gordon Campbell: On The Flag Campaign

So far, the public has treated the government’s flag campaign with something between disinterest and disdain. Most New Zealanders have instinctively seen through the marketing hype involved. More>>

Change For 2017: Local Govt To Decide On Easter Sunday Trading

The Government is to enable local communities, through councils, to decide whether retailers can open on Easter Sunday, Workplace Relations and Safety Minister Michael Woodhouse announced. More>>

ALSO:

(And Targets Worse Than Australia's): Foresters Abandoning Emissions Trading Scheme

The Government’s gutting of the Emissions Trading Scheme has caused foresters to leave and emissions to rise, says Labour’s Climate Change spokesperson Megan Woods. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news