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

 

Gordon Campbell: On Bank Scandals (And Air Crashes)

Last month, the Australian Securities and Investment Commission (ASIC) filed proceedings against Westpac over activities that have some distinct echoes of the Libor scandal. More>>

Budget: Health Funding Must Keep Up With Need

NZNO: “The nursing team has been doing more with less for years. It’s getting to the point that we’re really worried about our colleagues, our patients, our jobs and the level of health care available for people in our country." More>>

ALSO:

Emissions Inventory: Time For The Government To Do The Right Thing

It’s time for the National Government to step up and do the right thing to reduce climate pollution as data shows New Zealand’s greenhouse gas emissions are higher than ever, the Green Party said today. More>>

ALSO:

Budget 2016: More Partnership Schools To Open

Seven new schools will join the eight Partnership Schools already open, along with further new schools opening in 2017. “The growth of this policy is a reflection of the high level of interest from educators and community leaders,” Mr Seymour says. More>>

ALSO:

No Correspondence With English: Did Brownlee Make Up Sale Of Navy Ships ‘On The Hoof?’

Having revealed that several Royal New Zealand Navy vessels have not left port in years, New Zealand First is now asking the Minister of Defence to prove he did not come up with the idea of selling HMNZS Taupo and Pukaki until the media asked him. More>>

Housing Plans: Labour- Abolish Auckland Urban Boundary
The Government should rule out any possibility of an urban growth boundary in Auckland Council’s Unitary Plan if it is serious about fixing the housing crisis. More>>
Greens - State House Solution
The Homes Not Cars policy allows Housing New Zealand to retain its dividend and, in addition, would refund its tax, to spend on the emergency building of around 450 new state houses. More>>

ALSO:

Houses And Taxes: Post-Cabinet, Pre-Budget Press Conference

The Prime Minister said that the pre-budget announcements showed that his Government is “investing in a growing economy”. He re-affirmed the National Government’s commitment to lowering personal tax rates but that any such change must fit with the fiscal reality of the time. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news