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

 


Business Groups Welcome Funding Review

Business Groups Welcome Funding Review

Local Government New Zealand’s announcement that it is reviewing local government funding will be welcome news for ratepayers, said Michael Barnett, Chair of the Local Government Forum, a group of business organisations with a keen interest in local government policy.

Mr Barnett was commenting on LGNZ’s announcement at its first quarterly briefing on Local Government Performance and Outlook.

“The business community has long been concerned about the over-reliance of property value rates to fund local government.

“Modern local government is broadly empowered in terms of its role and responsibilities yet it is restricted to a narrow, archaic funding base made up of property value rates and per property charges.

“Property value rates bear no relationship to either a person’s relative ability to pay, or use of a service. Rates prevent communities from truly assessing the costs and benefits of council activities. For many businesses, this means a heavy tax on a key asset to pay for all manner of community services many of which they may rarely, if ever, use and have very little say over.

“The last serious attempt to look into local government funding was the 2007 Independent Inquiry into Local Government Rates, also known as the Shand Inquiry. It was an honest effort but few of its recommendations have been adopted either by central or local government.

“We acknowledge that the Government’s Better Local Government should result in a more efficient local government sector and slower growth in council spending, rates, and debt than might otherwise have been the case. However, the reforms have not addressed the funding of local government in a meaningful way and rates will continue growing as a proportion of local government income, especially as demographic change creates intense pressures on councils.

“It is therefore timely to take another look at how best to fund modern local government and we congratulate LGNZ on its initiative. The business community is very keen to be part of the conversation”, concluded Mr Barnett.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news