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


Local body tax idea ‘a bit rich’, says Key

Local body tax idea ‘a bit rich’, says Key

April 15 (BusinessDesk) – Prime Minister John Key made it clear he is no fan of a push by the local government lobby to be allowed to raise local taxes other than through property rates, saying the proposal is “a bit rich”.

Local Government New Zealand proposed a new approach to funding local body infrastructure last week, arguing that property rates were becoming an anachronism and could put undue pressure on an ageing population who may have reduced income despite owning valuable rateable properties.

At his post-Cabinet press conference yesterday, Key said that “generally speaking, we’re opposed to that.”

“Our view is that it’s the purview of central government to be able to raise revenue in those forms.

“My concern would be if you started seeing ad hoc bed taxes and sales taxes and all sorts of other things being applied by local government, then they would naturally add cost to the economy and make us less competitive.

“We’d need to see really good justification for why they need so much extra revenue that they can’t currently raise through the rating base,” Key said.

He described as “a bit rich” the argument that there would be more “asset rich, cash poor” elderly home owners with an ageing population, who might struggle to pay rates based on property values.

“There are plenty of mechanisms for dealing with that,” said Key. “They can have a lien against property, they can defer taking their rates, they can have reverse mortgages. There are plenty of ways they could extract their pound of flesh but take it at a time when cashflow isn’t such a problem.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news