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

 

(OCR) Increase Will Mean Council Rate Increases

8 December 2005

Reserve Bank Official Cash Rate (Ocr) Increase Will Mean Council Rate Increases Next Year

Statement from Association Chairman, David Thornton

The latest rate increase by Alan Bollard will flow through all sectors of the economy and will add significantly to local government costs.

This will mean bad news for ratepayers next year.

Local council rates have, in recent years, been increasing at about twice the inflation rate - partly to pay for additional spending and partly to reflect inflation.

And there is worse to come.

Early next year councils will be producing 10- year plans which will reveal huge increases in expenditure - especially on basic infrastructure such as roads, sewerage systems, and fresh water supply -plus, in Auckland at least, public transport.

This expenditure will ultimately be funded from rates - to meet the costs of interest and capital repayments.

Rates are a tax - a form of wealth tax based, for the most part, on the estimated value of the family home.

Rates take no cognisance of income or ability to pay. Nor do they accurately reflect the value of services supplied to individual households.

A Government-appointed 'task force' of bureaucrats is supposedly working on finding alternative funding sources.

Judging from an earlier Treasury report the work being done by the task force is in fact to find additional funding sources.

Such an approach can only result in councils actually increasing their spending - rather than undertaking a fundamental appraisal of what local councils should and should not do and who should pay for it.

[A final report from the task force will be released either late this month or early in the New Year].

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Budget 2022


At base, the political biffo back and forth on the merits of Budget 2022 comes down to only one thing. Who is the better manager of the economy and better steward of social wellbeing – National or Labour? In its own quiet way, the Treasury has buried a fascinating answer to the “who’s best at running an economy during a crisis?” question, at page 57 of the Fiscal Strategy section...
More>>



 
 

Government: Helps Supermarket Shoppers Get A Fair Deal
Urgent Budget night legislation to stop major supermarkets blocking competitors from accessing land for new stores has been introduced today, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>


Budget 2022: A Secure Future In Difficult Times
Budget 2022 will help build a high wage, low emissions economy that provides greater economic security, while providing support to households affected by cost of living pressures... More>>

ALSO:

Budget: Climate Investments Provide Path To Economic Security
The Government is investing in New Zealand’s economic security by ensuring climate change funding moves away from short-term piecemeal responses and towards smart, long-term investment... More>>

ALSO:



National: Jacqui Dean To Retire From Parliament In 2023

Waitaki MP Jacqui Dean has announced that she will not be seeking re-election at the 2023 election. “I have advised the President and Leader of the National Party that I have decided not to put my name forward... More>>

Classification Office: Following Decision To Ban Manifesto The Buffalo Mass Shooting Livestream Is Now Banned
The livestream video of yesterday’s mass shooting in the United States has now been banned, Acting Chief Censor Rupert Ablett-Hampson announced this morning. The decision follows on from his decision yesterday to call in and ban the ‘manifesto... More>>

Borders: New Zealand Poised To Welcome International Students Back
New Zealand is fully reopening to international students and the Government is committed to help reinvigorate and strengthen the sector, Education Minister Chris Hipkins said today... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels