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THURSDAY 17 JUNE 2010 (3.30PM)

Farmers propose re-rating rates, following Colmar Brunton poll

A Colmar Brunton poll commissioned by Federated Farmers and to be presented to the Minister of Local Government, the Hon Rodney Hide today, is a precursor to the Federation broadening its lobbying approach on local government funding reform.

“The formative thing about local government reform is funding. Unless that is tackled no reform will be successful in the long run,” says Don Nicolson, Federated Farmers President.

“Rates are a substantial economic impact raising around $4 billion each year. That’s more than the combined budgets of Police, Corrections and the Ministry of Foreign Affairs and Trade.

“Given the responses in this poll were predominantly urban, urban New Zealand shares Federated Farmers views about the need for reform.

“Local government’s current funding model effectively sees the ‘landed’ being inequitably lumbered with its cost. There’s a real desire for change including widespread urban disenchantment with the status quo.

“We see funding reform as the hinge on the door to wider reform. It’s only when funding is logically and fairly applied that you get rational decision making about the type, quality and quantity of service provision.

“All people should pay equally for equal access to people services. Using property values as a proxy for rating must stop.

“Federated Farmers believes there will be better community engagement and buy-in with councils, if the funding is rationally tied to service delivery.

“While some will argue rental payments cover rates this is indirect at best. In a renters market it becomes a charge against the landlord.

“Right now there are tens of thousands of people for whom services are provided locally, who have no concept as to the real cost of that service provision.

“Federated Farmers believes a re-rating of rates is possible and is desired equally in town and country. We were genuinely surprised to see such a strong urban desire for reform,” Mr Nicolson concluded.

COLMAR BRUNTON POLL SUMMARY
• Only 32 percent of New Zealanders think their local council provides them with value for money for the services they use.
• Only 33 percent of New Zealanders (including only 40 percent of non-ratepayers) think rating on property is the most appropriate way to fund local council.
• But when given options for funding local government, 56 percent of New Zealanders still think that a property value rate paid by property owners is a ‘very acceptable’ or ‘acceptable’.
• Meanwhile, 52 percent of New Zealanders think that a uniform charge paid by all adult residents is a ‘very acceptable’ or ‘acceptable’ and 51 percent think that increased use of user charges is ‘very acceptable’ or ‘acceptable’.
• GST and income tax were less supported options, with only a minority (41 percent and 42 percent respectively) considering these options to be ‘very acceptable’ or ‘acceptable’.

The ‘council rates’ questions were included in the Colmar Brunton Online Omnibus (24 February to 3 March 2010). Around 1,000 New Zealanders aged 18 years or over were interviewed. The maximum margin of error for the total sample of n=999 is +/- 3.1 percent at the 95 percent confidence level.

ENDS

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