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

 


Local Government Bill passes, but funding must be next

30 November 2012

Local Government Bill passes, but funding must be next

Federated Farmers welcomes the passage of the Local Government Act Amendment Bill, but more must be done to contain and reduce the rates burden, Federated Farmers local government spokesperson Katie Milne says.

“The passage of the Bill is good news for ratepayers. Since 2002 rates have increased an average of 7 percent per year,” Ms Milne says.

“This growth is unsustainable and to rein it in councils and communities need better guidance and clarity on local government spending priorities.

“The Bill does this by changing the purpose of local government away from its activist, open-ended job description towards something more like what most people think local government should focus on: local infrastructure, local public services and local regulation.

“However, the Bill really just tinkers at the margin and will only go part of the way to containing and reducing the rates burden.

“What‘s needed now is funding reform, which so far has been the missing element of the Government’s work.

“It is well known that rates fall heavily and inequitably, with farmers being particularly hard hit. Far too many farmers pay more than $20,000 per year in general rates to fund activities they barely use or benefit from.

“What is perhaps less well understood is that funding policy also affects councils’ regulatory performance, especially when central government makes laws for councils to enforce, but does not provide any resources. The incentives are all wrong.

“We also think limited funding options are a factor in housing affordability, for example when councils impose high development contributions that push up the costs of sections.

“The burden of funding local government must be spread more equitably and that means moving away from the over-reliance on a 17th century system of property value rates and finding new and better tools for councils operating in the 21st century.

“Federated Farmers has always been up for this debate. With growing concern about housing affordability we sense the time is right to make some progress,” Ms Milne says.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news