Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Local Government operating deficit unexplained


Media Release 20/1/2000

Local Government operating deficit remains unexplained

The Northern Employers and Manufacturers Association says it was surprised at the defensive responses to their expression of concern over local governments’ finances.

“I would have thought the sudden $100 million turnaround from operating surpluses to deficits would alarm local authorities as it does every other business organisation,” said the chief executive of the EMA, Alasdair Thompson.

“Neither Local Government New Zealand President Louise Rosson, nor ARC Chairman Phillip Warren explained why local authorities have seen their operating surpluses of $54 million evaporate into a combined deficit of $47.2 million in the September 1999 quarter.

“We were not taking a ‘potshot’ at local government and neither is this a mere “blip” as Ms Rosson suggests.

“According to the Statistics New Zealand figures it is part of a trend which has suddenly worsened, giving the largest September quarter deficit since 1992.

“The operating deficit follows an earlier one for the March quarter, 1999,
compared to a $50 million surplus in March ‘98. Likewise, the operating surplus for the June 1999 quarter was very small compared to the same quarter the year before.

“Neither is it correct to claim these deficits were caused by central government requiring local government to book an extra $38 million for depreciation in the September 1999 quarter; they were required to fund this by increasing rates and charges during last year, and did so.

“We are seeking answers from Local Government New Zealand, as business is deeply concerned about the increasing cost of rates and charges.

“We are even more concerned that business differential rating mainly by city councils continues to be used to make business pay a greater proportion of the cost of public goods supplied by councils. Business is subsidising other ratepayers.

“Consequently we are also requesting the review of local government funding commenced by Internal Affairs over a year ago be completed and enacted with urgency.”


Further comments:
Alasdair Thompson
Telephone Bus 09 367 0911
Home 09 303 3951
Mobile 025 982 024

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news