Local Government Rates Inquiry Starts Consultation

The local government rates inquiry has started its public consultation with the release of a background document, and public meetings planned at a number of cities around the country.

The panel kicks off a series of forums with councils and the public in Hamilton on Monday 26th February and in Auckland on Tuesday 27th February. It will hold several other forums around the country in March and April.

The panel chair, David Shand, said the inquiry panel wants to lift the level of debate about local government funding by conducting an independent, sound, factual analysis of the issues.

"The meetings are an important part of that, and we have designed them to stimulate discussion about the issues.

"The background document we have released lays out what we think are the most important issues, and includes a list of questions we would like people to consider when preparing their submissions. Fundamentally, we are looking at the wider issue of funding of local government, not just rates. We will look at whether rates are equitable and affordable, and value for money for ratepayers and whether councils are using all the powers of rating flexibility they currently have.

"We want to know whether councils are making enough use of the available, non-rate revenue tools, such as development contributions, user charges and borrowings."

David Shand says the panel also wants to know what other new sources of potential revenue might be appropriate for local government.

"There are a number of other ways councils could raise revenue through local or regional taxes, and we will investigate them to see whether they are practical, efficient and equitable.

"As rates increases are driven primarily by local government expenditure decisions, the panel is also required to analyse the drivers of local government expenditure."

The panel will look specifically at the impacts of rates on land covered by Te Ture Whenua Maori Act 1993, and will meet with Maori at a number of hui. It will also examine whether the rates exemptions that currently exist for certain types of land - such as national parks and reserves, schools, public hospitals and ports - are still valid.

"Funding of local government expenditure is a complex area, and the financial decisions councils make raise many issues of equity and affordability because of the impact they have on landowners. The panel is committed to producing a high quality report for the Government, based on good, independent analysis of the issues."

"We are encouraging people to be constructive in their submissions and look for solutions, as well as identifying problems."

Written submissions are due with the panel by 30 April. The inquiry's background document is available on its website at www.ratesinquiry.govt.nz. Printed copies will be available from its office from 19th February.

The final report is due with the Government on 31 July 2007.

ENDS

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