The Plan They Did Not Listen To

Much of the comment about the ARC rates fiasco centres on three specific elements,

The government ‘theft’ of $670 million a year from fuel excise – the ‘Petrol Tax’

Expenditure levels of the ARC

The funds held by Infrastructure Auckland – which is owned by the regional ratepayers.

Our proposal to the ARC incorporated these three elements.

The following is the relevant extract from my address to the ARC last Wednesday 13th August.

“You could , if you really wanted to, set a rate of say 10% higher than individual ratepayers paid last year.

You do not have raise the $104 million you budgeted for in your Annual Plan.

You don’t have to carry out every proposal in your Annual Plan – look at Section 96 of the LGA.

Say you were to trim $12 million from your expenditure.

Then you asked central government to release another $12 million from the petrol fund.

Then borrow $6million or get a grant or an advance from Infrastructure Auckland.

That is one way of covering the gap of $30 million which might be required if you lowered rates across the board this year in a rate resetting exercise..”

The solution is still available – and should a Commissioner be appointed by the Minister to replace the ARC we would urge that this solution be adopted.

Meanwhile we will re-submit the proposal to the ARC in writing [although their deafness may be compounded by their blindness] and to the other interested parties, the Ministers concerned and Infrastructure Auckland.

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