Concern rising over local council debt

Official figures for the year ended 2012 showing local authorities rising debt levels are a cause for serious concern, the Employers and Manufacturers Association says.

"The message about saving more seems to have fallen on deaf ears in our local councils," said Peter Atkinson of the EMA.

"New Zealand's local councils debt overall got markedly worse last year after running operating deficits for five out of the past six years.

"Statistics New Zealand figures show councils' spending exceeded their income by $700 million in the year ended June 2012, the largest operating deficit since 1993.

"This is not a recipe for sustainability.

"Yet councils increased their income from rates that year by 3.7 percent, and from other charges by 6 percent, both figures over double the rate of inflation.

"Business is concerned about the trend. We need to know what plans councils have to address their rising debt levels."
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