Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Local Government funding: Not broken but will need help

The New Zealand Productivity Commission today released its draft report on local government funding and financing arrangements. It is the most substantial look at these issues since the 2007 Shand report.

In releasing the draft report, Commission Chair, Murray Sherwin said “The current framework measures up well against the principles of a good funding and financing system for local government. It is clearly separated from the central government’s tax base which is an important feature. It is relatively simple and economically efficient. It also provides a high degree of flexibility for councils to shape how they raise their revenue.

“Councils can make better use of the tools they already have access to, and there is room to improve organization performance, transparency and decision making that will help to relieve cost pressures.”

Murray Sherwin noted that “While this inquiry was initiated in response to a perception that rates have become less affordable over time, the Commission found no clear evidence of that. Rates, overall, have broadly kept pace with population and income growth over the past 3 decades, but have not become relatively more burdensome.

“However, even with a robust funding base, there are important areas where local governments will need assistance in the future.”

Rising sea levels and more intensive rain events threaten local government infrastructure, especially roads and waste/storm water infrastructure. These risks are very large, but not evenly distributed across the nation. There is a case for establishing mechanisms that assist in sharing the cost of research and policy analysis, and spreading the financial risk that would otherwise be unmanageable for the most affected communities.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Other stress points include coping with the rapid growth in tourist numbers, especially in smaller communities; and providing infrastructure to accommodate, in some cases, rapid population growth and, in other cases, small, static and ageing populations. Local government is also struggling to cope with new standards and requirements passed from central government. For instance, meeting health and environmental standards in the three waters sector is a major challenge for many councils, and the Commission makes the case for significant reform of the sector.

This draft report makes 30 recommendations to deal with the evident stresses and to better align council and ratepayer interests. These aim to support high-performing local government, which is critical to community wellbeing.

This is a draft report and the Commission is keen to capture reactions to its analysis and proposals. Submissions can be made until 29 August. The final report will be released on 30 November.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.