NoMoreRates.com

13June 2012

MEDIA RELEASE

[statement from David Thornton]

Too many controversial items in new Local Government Bill

Local Government Bill needs to be split to concentrate on new fiscal controls to be placed on council rates, debt and expenditure

The government may have made a big mistake by including too much in the proposed new Local Government legislation which narrowly passed a First Reading in Parliament yesterday by 61 votes to 59.

The new Bill contains proposals for introducing measures to limit council expenditure, debt and the level of rate rises. The Bill also provides for direct Government intervention at an early stage where it becomes apparent that a council has problems staying within prescribed fiscal limits.

Ratepayers around the country have been screaming for years for this type of legislation in response to the huge rate increases imposed by many councils.

Ratepayers in Kaipara District would love to have had this type of legislation in place. So to would residents of Dunedin and many other councils where profligate spending has produced the need for unsustainable rate demands.

But this new Local Government Amendment Bill also contains changes to the way council amalgamations are carried out and these changes have provoked political outrage from opposition parties in Parliament who claim the Government is killing local democracy. And there is certainly cause for concern in some of the provisions in the Bill.

Another controversial element of the Bill is the redefining of the purpose of Local Government

The Bill also includes proposals for all Mayors to have the same power as the Auckland Mayor, but many ratepayers and residents have yet to be convinced that this type of Super Mayor is necessarily a good thing.

At least the Bill has now gone to Select Committee which means ratepayers and residents will have the opportunity to show their support or otherwise for the various parts of the Bill.

The Select Committee and the Government might be well advised to break this Bill down into two parts – one to deal with the issues of prudent financial controls and ministerial intervention, and the second to deal with re-organisation issues and Mayoral powers.

This would allow ratepayers to concentrate their efforts, and the minds of the Select Committee, on the real issue for them – bringing rate increases under control.

ends

© Scoop Media