Local Government Rates Debate Misses the Mark

The current system for funding local government is neither fair nor sustainable UnitedFuture Auckland Issues spokesperson Damian Light said at a recent Auckland public meeting on rates.

“My neighbours in Beach Haven have lived in their home for over 50 years. Now the home in which they raised their children is becoming unaffordable. With fast rising house prices their rates are increasing, but their income isn’t. And they’re not alone” said Mr Light

“It is time we addressed the fundamental issues of the system. This isn’t a simple equation of spend less and collect less.

“This is about going back to the drawing board on the delineation of functions between central and local authorities and how we fund our cities and districts to serve local communities” said UnitedFuture Leader Peter Dunne.

“We need a system that allows councils to grow services and invest in the future without massive rate increases year after year.

“Spreading the sources of revenue will reduce the load on rates and can move us towards a system that recognises ability to pay.

“This isn’t about simply shifting from property tax to other taxes; it’s about taking a completely new approach to how we view local government. Fundamentally we need a better relationship between local and central government. ” Mr Light said.

“We have two problems. Auckland and Christchurch need significant infrastructure and housing investment. While small towns and rural areas have the opposite problem of too few people across large areas and thus authorities struggle to provide essential services.

“While understandable, the current conversation about stopping the rise of rates is the simply the wrong conversation” said Mr Dunne.

ENDS

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