Local Government Statistics Provide Warning for Voters

The release of statistics showing a major increase in local government spending is a timely reminder for voters in next month’s local authority elections according to the Wellington Regional Chamber of Commerce.

“Today’s statistics show a massive increase in local government expenditure of 31% since 2004 - the year of the last election,” said Chamber CEO Charles Finny.  

“This is why peoples’ rates bills are increasing.   The local government sector is expanding and efficiencies have not been great enough to compensate.

“There is a misconception amongst a large part of the community that rate increases are a consequence of the buoyant property market.  Today’s statistics provide the real reason.

“Because local government has a monopoly in the provision of many of its services and because much of its income is guaranteed by legislation, many of its services are inefficiently delivered or overpriced. This is a major driver

“The fact that increasing areas of economic activity are being influenced by local government and that candidates are making extravagant spending promises without giving thought to the consequences makes it more important for people to give careful consideration to candidates’ policies before voting,” Mr Finny concluded.

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