Government Rates Review
Friday, 25 August 2006
Local Government New Zealand to work with the Government on the independent rates inquiry
Local Government New Zealand’s President Basil Morrison has welcomed the Government’s intention to conduct a principled and comprehensive inquiry into rates.
"I am reassured by the independent nature of the proposed inquiry, free from some of the more extreme solutions expressed recently, such as rate-capping", he says.
"An independent inquiry provides an opportunity to fully investigate the funding issues affecting local government and it allows us to represent the views of our member councils. The issues surrounding rates and various rating systems are complex and require a comprehensive evaluation free of political influence."
The government inquiry is supported by Palmerston North Mayor, Heather Tanguay who is pleased with the decision. There has been much discontent throughout New Zealand about rates this year with many Councils facing rate rises in double figures much of it due to infrastructural and deferred maintenance Mayor Heather says.
Our Council has always taken a balanced view of asset renewal but it is expensive as is evidenced by the current work of renewing 90 year old pipes", she says.
The average ratepayer in Palmerston North is paying an approximate increase of six percent for the 2006/2007 financial year.
Local Government New Zealand is pleased this inquiry will also consider the work of the joint Central Government/Local Authority funding project. From a local government perspective any review must respect the fundamental principles of local democracy:
- the accountability of locally elected politicians to their voters should not be undermined
- the autonomy of local government to respond to community preferences in a flexible manner must be respected
- local leadership and the role of local government in future economic development of New Zealand must be respected.
"We look forward to working with the Government on the inquiry’s terms of reference", said Mr Morrison.
Local Government New Zealand is the national voice of all 85 councils of New Zealand.
