Media statement from Dick Quax

Monday, 12 September 2007

Rates Inquiry Recommendations Applauded

Councillor Dick Quax, candidate for Mayor of Manukau City, said that almost all of the Recommendations of the Rates Inquiry would be implemented in Manukau if he and his Peoples Choice team won election next month. However the Rates Inquiry could have gone much further in recommending restraints on local body expenditure of dubious benefit to residents.

“I note with interest that the Rates Inquiry dismissed the Len Brown proposal for an Income-based Poll Tax as “not worthy of further study”.

Brown proposes replacing rates by sending extra income tax demands to everybody whose address held by Inland Revenue is within Manukau City. This scheme would impact very adversely on families, as each working individual would have to pay the Local Income Poll Tax (including adult children gone flatting but whose official mail is still sent to the family home).

The Rates Inquiry Report instead recommended reducing rates to no more than 50% of local body income. It proposed additional funding from:

• Central government paying full rates on all properties except Conservation Land;

• Increasing the Petrol Tax contribution to local bodies for roading;

• GST funding help for major Storm/Waste/Water Reticulation projects;

• Borrowing for long-term infrastructure instead of short-term balanced budgets.

Other worthwhile local body reforms recommended were –

• Volumetric User Charges for water & wastewater, which encourage conservation;

• Annual Performance Reporting for each investment including CCTOs;

• Standard formats for easy comparison between years and between councils;

• Specific fixed charges (e.g. for Rubbish) replacing Uniform Annual General Charges;

• Capital Value alone used for property-based rates.

“I agree with the Rates Inquiry which does not support local poll, payroll, income, consumption, industry or congestion taxes.”

ENDS

© Scoop Media