DAVID THORNTON
Writer and commentator on Local Government

[David Thornton is a former member of - North Shore City Council, Glenfield Community Board, Auckland Regional Land Transport Committee. He is currently founder/organiser of the NoMoreRates campaign.]

media release 24th May 2007

David Thornton on water price increases

‘Why should fresh water supply and processing of wastewater become a profitable exercise in order to pay for other council activities?’

Water is arguably our most precious resource – without it we would die.

Now our local councils are increasing the price of water in order to pay for all the other activities our councils get involved in.

Profits from the Metrowater price increase will be diverted to make so-called ‘charitable payments’ to the Auckland City Council.- and that council can spend this money for recreational purposes, roads, cemetries, footpaths, parks, educational facilities and a host of other activites.

Another proposal, that water wholesaler Watercare Services Ltd should pay dividends to the local councils, will mean price increases to every household and business in the Auckland region.

It is claimed that these dividends will be used to pay for stormwater capital projects – and the current funding source for those projects will instead be diverted to meet tansport and roading costs.

The question must be asked ‘Why should fresh water supply and processing of wastewater become a profitable exercise in order to pay for other council activities?’

Water is a precious and life-sustaining commodity and should not be used as a form of general tax to be spent on unrelated activities.

All these new ‘water taxes’ will be in addition to the usual annual rates increases from the local and regional councils.

All this at a time when the Independent Rates Inquiry is supposed to be looking at alternative funding for local government.

These water taxes mean that every time we turn on a tap we will be paying for the general expenditure of our local councils – including the huge increases in staff numbers we have seen over the last five years.

Instead of finding creative ways to make ratepayers and residents pay more, councils must now find ways to cut costs and eliminate wasteful expenditure.

ends

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