Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Forecast Rate Increases Could Collapse Local Govt

Chairman; David Thornton

media release 6 October 2005

Statement by David Thornton following the report in today’s North Shore Times that council rates will need to rise by 6-7% each year for the next eight years to meet a one billion dollar infrastructure bill.

Forecast Council Rate Increases Could Collapse Local Government

The prospect of huge rate increases in North Shore City Council rates over the next 8-10 years will send icy shivers of apprehension down the spines of many ratepayers – especially those on low and fixed incomes.

And the North Shore City scenario is windowed right around the country – huge rate increases to pay for aging or inadequate infrastructure.

In July next year there will be improvements to the Rates Rebate scheme which were announced earlier this year by the government –as part of the Labour party’s election campaign.

The changes were designed to relieve the rates burden on low income earners, superannuitants and beneficiaries

But the increases in rates now being forecast will, almost immediately, wipe out any new benefit from the additional rebates scheme.

On top of the North Shore City Council rates there will be substantial increases in Auckland Regional Council rates to pay for the rising cost of subsidising public transport – notably the rail system – and to meet the cost of public transport infrastructure.

The current rating system based on the estimated sales value of property will not sustain the constant demand for higher and higher rate increases.

The elderly will be the first to suffer –and this is ominous in a society in which the fast growing age group in terms of population is the over-65s.

It is now a matter of extreme urgency that new methods of funding local government must be found which will reflect the individual's ability to pay.

If nothing changes the whole local government system may well collapse.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why The Public Doesn't Always Do As Told, Even In 24 Languages

Today we were told that the Covid vaccines available to New Zealand are both halal and kosher. Good to know. And good to officially recognise that we’re no longer living in a monoculture. Reportedly, the government is putting its Covid messages in 24 different languages on its website. Yet according to its critics that’s not enough. Supposedly, we could have avoided the need for the latest lockdowns entirely if only the government had shown better communications skills... More>>


Government: Next Stage Of COVID-19 Support For Business And Workers

The Government has confirmed details of COVID-19 support for business and workers following the increased alert levels due to a resurgence of the virus over the weekend... More>>


Government: PHARMAC Review Announced

The Government is following through on an election promise to conduct an independent review into PHARMAC, Prime Minister Jacinda Ardern and Health Minister Andrew Little announced today... More>>


Government: Main Benefits To Increase In Line With Wages

All measures of child poverty were trending downwards, prior to the COVID-19 lockdown, across the two years since year ended June 2018, Stats NZ said today. The COVID-19 lockdown in late March 2020 affected Stats NZ’s ability to collect data from households ... More>>

Covid-19: Auckland Back To Alert Level Three After One New Community Case Revealed

Auckland will move to alert level three for a week at 6am tomorrow morning after two new Covid-19 community cases announced this evening could not be directly linked to earlier cases, the Prime Minister has confirmed.
The rest of the country will move to level two.... More>>

NZ Initiative: New Report Highlights How Our Housing Crisis Could Worsen If We Don’t Act Now

If New Zealand politicians thought the housing crisis in 2020 was bad, the worst is yet to come, warns a new report by The New Zealand Initiative. In The Need to Build: The demographic drivers of housing demand , Research Assistant Leonard Hong ... More>>

Parliament: Kiwi MPs Among The “Most Educated In The World”

New analysis of MP qualifications reveals New Zealand’s Parliament is one of the most educated and highest qualified in the world, and significantly more educated than Australia’s. The research, by Mark Blackham of BlacklandPR and Geoffrey Miller ... More>>

The Dig: An Illogical Ideological Struggle

Dig beneath all the trade wars and the arguments to the effect that the USA should not permit China to achieve economic and technological superiority, or even parity, and you find the real reason behind the conflict... More>>




InfoPages News Channels