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16 November 2006

MEDIA RELEASE

Opposition to Bed and Airport Taxes, to Pay for World Cup Stadium, Will Put Pressure Straight Back on Residential Ratepayers

While it is not surprising that the Travel industry should oppose any new taxes on their businesses, that industry must accept that it is their businesses which stand to gain financially from visitors to major events at a stadium.

Those same visitors, especially in large numbers, add pressure on to the local infrastructure which has largely been paid for by residential ratepayers.

Travellers out of Sydney are taxed at the airport to pay for that city’s Olympic Stadium at Homebush – surely New Zealand can do the same.

The government has already signalled it expects local government to make a reasonable contribution to the cost of a Waterfront stadium.

A higher level of contribution would reportedly be required for an Eden Park upgrade.

To avoid imposing a greater burden on ratepayers the government has offered to introduce bed taxes and airport taxes which would be made available to local councils.

The alternative to such taxes is likely to mean hefty council rates increases on top of the already high increases forecast for the next ten years.

It is grossly unfair to expect residential ratepayers to pay for venues for professional sport and commercial entertainment – especially when the amount each ratepayer would contribute is calculated on the value of their homes.

ENDS

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