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

 

Commerce Commission: Law Change Creates New Climate For Borrowing

Consumers in the market for a loan can expect to see significant changes to lending practices after an overhaul of consumer credit law, which takes effect from Saturday. More>>

ALSO:

Half Empty: Dairy Product Prices Slide To Lowest In Almost Six Years

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in nearly six years, amid concern about the end of European milk quotas, Russia's trading embargo and sluggish Chinese demand. More>>

ALSO:

Oil: Z Energy To Run Multi-Brand Strategy After Buying Caltex

Z Energy says it is committed to running a multi-brand strategy following the acquisition of the Caltex and Challenge! brands from Chevron New Zealand in a $785 million deal... More>>

ALSO:

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news