Councils should move quickly to phase out rating differentials

Councils don't need to wait for Government legislation removing rating differentials from the Local Government (Rating) Act - they can act immediately and show they really support local business, said Auckland Chamber of Commerce chief executive Michael Barnett.

He was commenting on the recommendation from the Local Government rates Inquiry that rating differentials be removed from the Act.

"It is welcome news that the Rates Inquiry has reinforced the extensive examination of the case for business differentials over the last few years and come to the same conclusion that they lack any principle rationale and are unfair, unjust and antiquated," said Mr Barnett.

The Auckland Chamber has long argued to Auckland councils that if they are serious about 'walking the talk' when claiming to support local business, then they would apply a strict value for money criteria to all services.

"Candidates for the forthcoming local elections will be expected to make it clear that they support the early phase out of the rating differential, if they are to win the confidence of business voters."

To encourage councils to act, early government commitment to change the Act to make rating differential illegal would be welcome, said Mr Barnett.

The Chamber also supported as "common sense" the recommendations that councils make greater use of borrowing to service capital projects and shift its charging more to user pay.

ENDS

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