2 November 2011
Statement by David Thornton

Labour Earthquake Fund Proposal Outrageous

The proposal by the Labour Party that it would fund its Earthquake Fund from a charge on rateable value is totally outrageous as it compounds the effect on council ratepayers of a system which has been widely condemned as unfair.

Council rates are for local services and facilities – they were never intended to be used for funding a nationwide insurance fund for earthquakes.

Ratepayers are already facing substantial rates increases, particularly in Auckland and Dunedin.

In Auckland a total revaluation of all property is revealing the certainty of rates increases of 20% and higher for some ratepayers.

In Dunedin increases of almost 12% are being discussed.

Now Labour’s policy of adding to those rates increases will drive some ratepayers from their homes.

The present rating system of taxing homeowners on ‘desk-top’ calculations of the value of their home is no longer sustainable.

This was pointed out in the Independent Rates Inquiry Report of 2007.

I urge all ratepayers to challenge their Labour candidates and demand that this iniquitous policy be withdrawn.

And I urge all ratepayers Auckland to challenge their property values particularly if their value has increased.

ENDS