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

 

One positive for business in Productivity Commission report

One positive for business in draft Productivity Commission report

Source: EMA

--

The EMA is pleased the Productivity Commission’s draft Local government funding and financing report recommends doing away with differential rating for business, and giving councils tools other than rates to raise revenue.

EMA chief executive Brett O’Riley says business has always paid a disproportionate share in rates in Auckland through the differential - more than double the residential rate - and this recommendation more fairly targets those that benefit most.

The EMA has never supported the argument that councils use to justify the business differential, that unlike households they can claim back GST paid on rates and claim rates as an expense to reduce their income tax liability.

Mr O’Riley says the EMA agrees with the Productivity Commission report that high-performing local government is vital for community wellbeing, and that good performance by councils should be incentivised to ensure the best outcome for everyone.

"We agree that there should be more transparency in the way local councils raise their revenue, and that with the key role they play in enabling productivity more measureable outcomes and accountability is needed," he says.

In particular in Auckland, new funding tools are needed to address cost pressures created by infrastructure to support rapid urban growth - otherwise the current social and economic problems will continue to create inequalities.

"Special Purpose Vehicles to help finance new development seems to be a logical solution for councils at their debt limits, and we have seen an excellent example of this in our region with the Milldale development at Wainui," says Mr O’Riley.



"That seems to be a really good model for the future, but we must ensure that as well as infrastructure basics such as electricity, water and roading, we make sure everything that makes a housing development into a true community - parks, walkways, cycleways, access to facilities and services - are also factored in."

The EMA will now formulate a detailed submission for the Productivity Commission on the draft Local government funding and financing report.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Emission Statement: No New Coal Boilers For Fonterra

Fonterra is shaving eleven years off its coal target, as it announces a new commitment to reduce its reliance on coal. More>>

ALSO:

Long Time Coming: Soil Turned On Waimea Dam

After almost 20 years of planning and a 'gruelling' process to keep the project on track, the Waimea Community Dam, one of the Tasman District's largest-ever projects, is now under way. More>>

Where's My Drone Pizza: Govt's Drone Plan 'Will Help Economy Take Off'

The paper Taking Flight: an aviation system for the automated age sets out the Government’s vision for how drones can be better integrated into the current transport system to develop a thriving, innovative and safe sector. More>>

ALSO:

Up 17.% In June Year: Fuel And Rent Drive Inflation

The consumers price index (CPI) rose 0.6 percent in the June 2019 quarter, due to higher prices for petrol and rent, Stats NZ said today. More>>

ALSO: