PRESS RELEASE
1 August 2012

National's Double Standard: Help for Greece but Not for Kaipara

Conservative Party Leader Colin Craig is calling for the government to intervene on behalf of Kaipara ratepayers.

Mr Craig spoke to a restaurant full of angry ratepayers this week in Dargaville.

“Its shameful to see the Local Government Minister saying that assistance provided will be ‘very limited’. As a country we can commit over a billion dollars to bail out Greece, but are told we can do little or nothing to help our own people.”

Kaipara District Council face enormous problems due to overrunning capital projects, they have $85 million of debt, which when compared to annual income, is a percentage of over 185%. As a comparison, Greece has a percentage of debt versus income of 160%. Already over 10% of Kaipara ratepayers are on a rates strike, and the problem is just getting worse.

“I’m tired of a double standard that sees the Government commit over a billion dollars to help bail out Greece and others, yet they can’t find $85 million as a loan to help our own people” he says.

“The best solution is not a difficult one,” says Mr Craig, “A commissioner needs to be appointed to arrange the retirement of existing debt in favour of a single consolidated loan from government. The repayments can then be scheduled over an extended timeframe to minimise the impact on ratepayers. Additionally, austerity controls should be introduced” he says.

“This solution not only deals with the immediate crisis, but also provides a solution that ratepayers can afford. This is the way debt crisis are being handled internationally. The current hands-off approach by National is only allowing matters to get worse.”

In response to National’s proposed Local Government reforms, Mr Craig says “National are being entirely too timid, and have not understood that Local Government problems are systematic in nature and significant reform is required.”

“Let’s not forget, when it comes to local government, the single biggest disaster is the Auckland Super City that National created, against the wishes of the people”

ENDS