Forum calls for Change

Media release
28 September 2007

Forum calls for Change

The Local Government Act must be changed to contain council spending and ease the rates burden, says the Local Government Forum.

The Forum which represents business-related groups seeking efficient local government has delivered this message to the Local Government Commission’s operational review of the Local Government Act and Local Electoral Act.

Forum member Charles Finny said local authority expenditure had gone up by more than 42% over last four years, from $4 billion in 2003 to $5.7 billion in 2007.

“This is a concern for business ratepayers and farmers since this relatively small group pays around half of the total rates paid.

“The increase in council spending has been particularly marked since the 2002 passage of the Local Government Act which gave councils general empowerment and explicit encouragement to promote social, economic, environmental and cultural well-being.

“It is more than coincidental that expenditure has increased at a far faster rate since around 2003 compared to preceding years and there is a great need for councils to focus on their core activities and restrain their spending,” Mr Finny said.

A copy of the Forum’s submission to the Local Government Commission is available on request (e-mail nclark[at]fedfarm.org.nz).

ENDS

The members of the Local Government Forum are Business NZ, the NZ Retailers’ Association, Federated Farmers, NZ Chambers of Commerce, Electricity Networks Association, and the NZ Business Roundtable

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