Interim Changes To Local Government Rating System Needed Now Whileâ Mid To Long Term Solutions Developed And Implemented

Longer Term Solution Must Include`Review Of What Councils Do.

In its final submission to the Rates Inquiry the NoMoreRates campaign has called for interim measures to deal with current problems rising from the present unfair rating system.

“These interim measures could be developed, costed and implemented during the next year – and totally in place for the 2008/9 financial year” David Thornto states in the subnmission on behalf of the campaign.

The measures are;-

• Remove GST from rates.[Could be done overnight]

• Repeal power of general competence from LGA 2002. [Could be done within 6 months]

• Central Government to fully fund all roading except for new roads built by developers in new sub-divisions.[Could be done progressively over next 12 months]

• Public transport subsidies to be fully funded by central government on a basis to be agreed.[Could be done progressively over next 12 months]

The campaign’s submission to the Inquiry states

“Over the past 12 months NoMoreRates has received hundreds of suggestions, comments and stories from groups and individuals representing thousands of ratepayers around the country.

“There is a consistent message – the present system of majority funding by way of rates based on property values is neither sustainable nor acceptable

“The overwhelming call from ratepayers and residents is for councils roles and functions to be redefined and essential or core services to be separately defined and funded”.

In calling for interim measures the  NoMoreRates campaign told the Inquiry

“While the overall response from ratepayers is a call for the abolition of the current system, there is acceptance that it will take some time to develop and implement a new system.
“Meanwhile ratepayers will continue to face rate increases beyond an acceptable or affordable level, and there is a justifiable demand for relief now”.

The submission also proposed long term permanent solutionsfor funding local government other than by rates.

The submission states;-

A FUTURE FUNDING SYSTEM

Ratepayers are not generally in a position to produce detailed proposals for new forms of funding for local services but they are clear as to the form of tax they would find acceptable

Essential and ‘core’ services to be defined and funded by any of the following means;-

A citizens tax – poll tax – with central government welfare benefit available. This tax would be set by local councils and increases would be ‘capped’.

Local income tax – collected centrally and funded to councils on a per capita basis.

Increase in GST and distributed by central government on a per capita basis

Any new services required of local government as a result of central government direction/legislation to be fully funded by central government

Desirable services to be funded by any of the following;-

User pays at the time of use

Local/regional lotteries

Local/regional Community Trusts – funded by grants, donations, fundraising.

The Inquiry is due to report by 31 July 2007

Ends.

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