Getting councils to focus on their core business
Getting councils to focus on their core business
Auckland Council must focus on its core business after the water crisis highlighted Auckland’s failing water infrastructure, says ACT Leader David Seymour.
“In the face of a critical council infrastructure deficit, the Central Government should do a deal with councils: stop funding silly stuff, and we will give you access to the funding sources you need.
“At present the Central Government tightly constrains councils sources of revenue.
“No wonder Auckland has a housing shortage when the council cannot afford the infrastructure it already has, let alone what is needed to grow the city.
“The problem is limited revenue sources. Currently, if the council needs more revenue it must rate existing properties harder. Some Auckland residents pay $35,000 in rates, to put out the same wheelie bins as everyone else.
“ACT has proposed that half the GST on new construction go to the council where the construction takes place. This policy would give councils a depoliticized source of revenue, plus an incentive to consent more housing.
“In return, councils would be required to stick to their core business, such as providing roads, sewers, and wastewater.
“Auckland Council shouldn’t be extravagantly spending $37 million on a water park in Wero, $26 million a year on marketing and communications, and $500,000 on a new slogan for the city – especially while infrastructure crumbles.”
ENDS