Councils opposed to rates capping – Hide will have a battle at Local Government Conference.

Ratepayers do not have bottomless pockets.

Ratepayers across the country are eagerly looking forward to Rodney Hide’s proposals for curbing council expenditure and limiting council rates increases.

The Local Government Minister is due to report to Cabinet by 31st August on the subject of controlling rates and defining councils ‘core services’.

Ratepayers will be dismayed to hear that Mr Hide can expect some tough opposition to rates ‘capping’ from Local Government New Zealand [LGNZ] during its Annual Conference opening tomorrow in Christchurch.

LGNZ has already commissioned and received a report from the New Zealand Institute of Economic Research [NZIER] which claims that rates capping would prevent councils from providing infrastructure and services the community demands.

NoMoreRates founder/organiser, David Thornton, said today that rates have skyrocketed over the last few years and urgent steps are needed to control expenditure and hold down rates. He claims that limiting increases in local taxes is a widely used policy in the USA, UK and Europe and in New South Wales.

The NZIER report concludes “There is compelling evidence …. that rate capping can be highly effective against the single objective of constraining rates increases”.

David Thornton said “That is exactly what many ratepayers are calling for – constraint.

“The Rates Inquiry predicted that the present rating system will be unsustainable within ten years – and that comment was made two years ago. Many councils claim they need more rates to bring infrastructure up to scratch.

“But those same councils have no consideration for the unaffordability of rates for low and fixed income ratepayers.

“Many ratepayers are hoping that Rodney Hide and the Government will stick to their guns and bring in controls over rates because too many councils have failed to recognise that ratepayers do not have bottomless pockets”.

ENDS

© Scoop Media