Ratepayers in the firing line if Labour/Greens win election
Ratepayers in the firing line if Labour/Greens win election and start CRL
NoMoreRates has no allegiance to any political party but the election promise by Labour and the Greens to make an immediate start on the Central Rail Link would be an absolute disaster for Auckland ratepayers.
Labour suggest a 50/50 funding split for the capital cost between Government and Council, while the Greens promise a 60% funding from the Government.
These proposals mean 40% or 50% needs to be funded by the Council – a task Mayor Brown has found unachievable after 4 years of trying.
Without other funding options the Council would need to borrow up to $1.6 billion to meet its share of the expected final cost of $3.2 billion.
Interest and repayment on this funding would be met from rates.
Such huge additional lending will take the Council close to, or above, its prudent limits on borrowing and interest – and the Credit Reprting Agencies will certainly question Auckland credit ratings.
On top of that, an early completion of the project, without the necessary passenger numbers, will need massive fare subsidies, paid for by ratepayers.
This Labour/Green policy promise, supporting Mayor Brown’s obsession for the CRL, will lead to rates rises of a level not seen for many years.