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Business Chamber response to Productivity Commission

Commenting on the Productivity Commission draft local government funding and financing report, Auckland Business Chamber head Michael Barnett noted that the Commission favoured the ‘benefit principle” – i.e., those who benefit from a service should pay for its costs.

The Commission also noted that issues of fairness and equity arise from differential rating, a long-standing concern of the Chamber.

Other notable points in the report included the suggestion that Special Purpose Vehicles (SPVs) are a financing option to help councils nearing their debt levels to invest in development in a way involves debt sitting off a council’s balance sheet.

Value capture and user charging would help growth ‘pay for itself’ was among other positive suggestions for a change in how local government to better handle funding growth infrastructure.

The Chamber will make a detailed response to the Commission.

© Scoop Media

 
 
 
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