Media release

21 July 2015

Auckland’s Mayor wants action on fairer rating

Mayor Len Brown says the Local Government Funding Review, released this morning by Local Government New Zealand (LGNZ), backs up his view that it’s time for government action to make the ratings system fairer.

“I have been saying for some time that the current model is intrinsically unfair and we need to pursue more equitable options that better reflect the complex funding challenges councils are facing.

“Aucklanders are feeling the burden of rates and I welcome this review to find more sustainable funding options for the future. This review is a very useful contribution to the much needed debate.”

Len Brown says a government review panel in 2007 also stated that new sources of funding would be needed by 2017 but nothing happened.

“We’re almost at 2017 and so we’ve done enough talking, it’s time for action.”

Len Brown says the present system is not good for anyone – not good for councils, communities or central government.

The review recommends alternative funding options for increasing community demands on services and infrastructure and incentives to drive economic growth including:

· road user charges, targeted levies and fuel taxes

· a plan to advance special zones for growth

· simplifying the rates rebate scheme

· charges and taxes on visitors

· reconsidering limits on community amenities funded through development contributions.

Local Government New Zealand will now work with the government, business and their communities to develop the ideas put forward in the hope they can be “put into practice with appropriate speed and urgency.”

Ends

© Scoop Media