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Industry support for greater share of GST to councils

11 September

Phil Goff welcomes infrastructure industry support for greater share of GST to councils

Auckland Mayor Phil Goff says a poll conducted for Infrastructure New Zealand indicates the industry is supportive of his call for the government to return the GST Aucklanders pay on rates to Auckland Council.

“According to Infrastructure NZ, 74 per cent of the industry supports local governments receiving a share of existing national GST,” Goff said.

“For three years I have been calling on the government to return the GST that it charges on rates—which is essentially a tax on a tax—to Aucklanders to be invested in infrastructure to support growth.

“Given Auckland’s contribution to New Zealand’s GDP and the fact we’re projected to receive 55 per cent of the nation’s total growth over the next decade, this would seem a fair step to take.

“Such a move would increase Auckland’s revenue by $270 million a year, further broadening the revenue base to take pressure off ratepayers and more fairly share the cost of growth.

“We need to invest to support our growing requirements for infrastructure, but we can’t expect ratepayers to bear the full brunt of these costs. New funding mechanisms are badly needed.

“I welcome Infrastructure NZ members’ support for expanded local government funding options to enable councils to meet growing infrastructure costs, and I reiterate my call for the government to consider all options.”

ENDS

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