Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

LGNZ reviewing local government funding

LGNZ reviewing local government funding


Local Government New Zealand (LGNZ) is launching a review of local government funding, to find a sustainable model for the future as demographic and economic factors continue to change rapidly.

New Zealand councils have a high reliance on property taxes, which is unusual by international standards. The common international approach is for local government systems to have a multiple taxing power, important for both resilience and fairness reasons.

LGNZ President Lawrence Yule confirmed today at the LGNZ April Quarterly Media Briefing that the sustainability of local government funding has become an increasingly important policy issue in the face of rapid demographic and economic change. He advised the LGNZ Local Government Funding Review will identify new funding options and alternatives that can complement councils’ current funding tools.

Mr Yule says many regions are facing the complex challenge of populations which are static or declining and ageing, resulting in lower household incomes and reduced ability to cope with property tax increases and under-utilised infrastructure, with smaller and poorer populations over which to spread the cost of maintenance and renewal.

Other councils are facing major growth pressures to fund large-scale infrastructure investments to meet the needs of future generations and sustain economic growth, with limited funding tools at their disposal. The required growth in funding requirements will place severe pressure on a pure property tax model.

Mr Yule says property taxes may soon no longer be appropriate or sustainable as the sole taxation form for many councils.

“Complementary alternatives are required. Our focus is on developing a strategy and model that is sustainable for New Zealand communities in the long term,” Mr Yule says.

“Examples of funding tools that may be reviewed for appropriateness in a New Zealand context include local income taxes, local consumption taxes, congestion charges, visitor charges and payroll taxes.”

A cross-sector working party will be formed for the LGNZ Local Government Funding Review during April 2014.

*Ends*

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election