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LGA provisions ignored by parliament


Media Release

Friday 30 November 2012

LGA provisions ignored by parliament

“The latest Local Government Amendment Act is another step toward a command economy" says Democrats for Social Credit spokesman, Heather Marion Smith. “The extra powers vested in central government bureaucracy will only alienate New Zealand's already overburdened ratepayers further” she adds.

Miss Smith scoffs at Labour's complaint that there is no mechanism in the Act to reduce rates when a year ago it supported Rodney Hide's Local Government Funding Agency which locks local bodies into extended borrowing on the privately controlled money markets.

The Democrats for Social Credit Party’s submission to the Bill cited provisions in the Public finance Act 1989 which gives the Minister of finance powers to borrow from any source and on any terms thought fit in the public interest.

“It is criminal that the major parties are ignoring this legislation” says Miss Smith. “With a rapidly growing awareness of financial alternatives, our MPs could soon find themselves in an intellectual backwater when it comes to responsible, nil interest funding for local government."

ENDS


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