Media release 25 May 2007

NoMoreRates welcomes Select Committee inquiry into water rates increases

NoMoreRates welcomes the decision by the Local Government Select Committee to investigate the proposed increase in water rates by Auckland City’s water and wastewater company Metrowater.

This new investigation at a Select Committee will allow the whole question of local government funding to be brought back before Parliament.

The Metrowater increases are being used to make a ‘charitable donation’ to Auckland City Council which will be used to hold down the level of increase in general council rates.

According to the Metrowater constitution those donations can be spent by the council on a variety of activities from new footpaths to parks, recreation facilities and projects such as the Aotea Centre.

The Select Committee should also look at the proposal to allow water wholesaler Watercare Services Ltd to pay dividends to local councils – meaning increases in water costs from that company which will eventually be paid by home owners and business users.

In today’s world of an ever-tightening squeeze on ratepayers it is important for politicians to look at the whole range of costs being foistered on to ratepayers and residents to pay for local government costs.

Water rates, targeted transport rates, development levies, museum rates, buying rubbish sacks, special rates for this or that - all designed to hit the ratepayers and residents pockets from their after-tax income.

And of course central government gains from the GST which is added to all these rates.

NoMoreRates urges the Select Committee to call for public submissions on the whole water rates issues –in particular whether profit from dinking water charges should be used to indirectly fund the whole range of local council activities.

That committee yesterday also considered the rates capping petition, circulated briefly last year by NoMoreRates campaign, and has referred that petition to the Rates Inquiry.

ENDS

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