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THE NATIONWIDE CAMPAIGN TO REFORM THE COUNCIL RATING SYSTEM

Media Release   16th January 2009

Statement from David Thornton on SuperCity speculation

London Mayor model not suitable for Auckland unless major funding is provided by central Government.

The current speculation that the Royal Commission might recommend a single mayor and council Auckland, similar to the style of London local government, ignores the totally different funding arrangements applying to local governemnt throughout Greater London.

No new government structure for Auckland can be introduced without clear funding arrngements in place.

In London there are thirty-two London Boroughs, each with its own council and mayor.

In most cases the Mayor is elected from within the council although a few Mayors are elected by popular public vote. {There is also the historically separate City of London which has a Lord Mayor elected from among its Court of Common Council]

All these councils levy their their own ‘Council Tax’ [equivalent to rates] and pay a small levy towards the budget of the Greater London Assembly and the Mayor of London.

However the bulk of the budget for the Mayor of London  and the London Assembly is supplied by central government [the taxpayer].

Such a system here would require a massive change in local government funding to which our central government currently provides about 12% of council funds, with the balance raised largely through local and regional rates and charges for services.

If the Royal Commission does opt for a ‘London’ solution for Auckland it will need to address this funding problem – without a clear and affordable funding plan any new governance structure would be doomed to failure.

And if the current rating system remains in place local ratepayers might well see rates spending decisions taken at regional level – with the real danger that demands for local facilities and services will become a lottery.

ends

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