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

There Is A Field: Reimagining Biodiversity In Aotearoa

We are in a moment of existential peril, with interconnected climate and biodiversity crises converging on a global scale to drive most life on Earth to the brink of extinction. However, our current worldview and political paradigm renders us incapable of responding adequately due to its disconnected and divisive default settings.

These massive challenges can, however, be reframed as a once in a lifetime opportunity to fundamentally change how humanity relates to nature and to each other. Read on The Dig>>

The Dig: Scoop’s Engaged Journalism Platform Launches
The Scoop Ecosystem has grown bigger with the launch of The Dig - a new public interest, in-depth, Engaged Journalism platform. More>>

 

Unscoped Or Missed Damage: Resolution For Canterbury Owners Of On-Sold Homes

People with over-cap on-sold* properties in Canterbury can now apply for a Government payment so they can get on and repair their homes. More>>

ALSO:

Hamilton-Auckland: First Urban Growth Partnership Signed

New Zealand’s first urban growth partnership between the Government, local councils and mana whenua was signed at a meeting of mayors, chairs and ministers in Hampton Downs today. More>>

ALSO:

Vote On Action Next Week: Secondary Principals Walk From Negotiations

“Unfortunately we consider there is no further value in continuing negotiations at this point. The government has not been able to table an offer that will be acceptable to our members.” More>>

Patrol Car Stolen, Glocks Taken: Manhunt In Gore

The driver rammed the patrol car before fleeing on foot with Police chasing, also on foot. The man has then circled back around, stolen the patrol vehicle, which had the keys left in it, and rammed another Police car... Two Police-issued Glock pistols were stolen. More>>

ALSO:

"Shocking And Dangerous": Accused Mosque Shooter's Prison Letter Posted Online

The man accused of the Christchurch mosque attacks has sent seven letters from prison and had two others withheld, Corrections Minister Kelvin Davis says. Corrections has now blocked the accused gunman from sending or receiving mail... More>>

ALSO:

Standing On List Only: Paula Bennett To Run National’s Election Campaign

The National Party is pleased to announce the appointment of Paula Bennett as our Campaign Chair for the 2020 General Election, President Peter Goodfellow says. More>>

Waiver For State Care Inquiry: Historic Abuse Survivors 'Can Speak Freely'

Abuse in state care survivors can take part in the forthcoming Royal Commission proceedings without being bound by any confidentiality obligations to Crown agencies under their historic claim settlements, Minister of State Services Chris Hipkins said. More>>

ALSO:

Trail Trial: Sexual Violence Court Reduces Lead-Up Times And Trauma

An evaluation of New Zealand’s first sexual violence court has confirmed that the approach taken in the judge-led pilot considerably reduces the time that cases take to reach trial. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels