Media Advisory
2 August 2007

Re: Council submission to Local Government Rates Inquiry

Recent media reports about a proposal for a Real Estate Transfer Tax in Manukau city have given the impression that the council is moving to put such a tax in place. This is incorrect.

The proposal was contained in a submission the council made in April to the Local Government Rates Inquiry. The Inquiry Panel was put in place by the Government in response to public concern about the level of rate increases outlined in Long Term Council Community Plans nation-wide, and public submissions were made on possible alternatives to rates funding for territorial local authorities.

Manukau City Council’s submission to this inquiry contained several options for alternative funding, and ways to reduce the burden on ratepayers. These included:

- A Real Estate Transfer Tax. This could be structured in a variety of ways, such as in tiers of charges, and a minimum threshold to reduce the burden on owners of lower-value homes. Buyers, sellers or both would be responsible for the tax.

- Government fully fund schools for all utility charges, including wastewater

- Rating exemptions be re-examined (e.g Crown land), with a view to all land being fully rated, and any rate concessions be based on the circumstances and following consultation with their local communities.

- Where services are transferred to a council-controlled organisation, the cost to ratepayers for those services is included in the calculations for rates rebates

- The basis for allocating the Local Authority Petroleum Tax is reviewed to something more appropriate than rate revenue, and the total petrol tax take is used for roads.

- The Regional Council (or the Greater Auckland Council) is responsible for funding MOTAT and the Auckland War Memorial Museum and any other facilities that are agreed to be regional facilities.

- The Crown is liable for development contributions on the same basis as other developers

The full submission is available on the council’s website, www.manukau.govt.nz.

ENDS

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