30 August 2007

Rates Inquiry report welcomed

Kapiti Coast’s Mayor Alan Milne has welcomed the rates inquiry report and says it fairly identifies a significant range of the problems facing local government in its efforts to provide infrastructure and services to ratepayers.

“We need to remember that the report is a series of suggestions to Government and they and we will need to review the impacts and the implications.”

Mr Milne said it was likely an incoming Council would want to workshop the various ideas but they would also need to be ready to respond to the ideas the Government selected to take further over time.

“The report’s proposals would benefit some while significantly disadvantaging others,” Mr Milne said.

“The principle of cost recovery through direct charges which the report endorses is one the Kapiti Coast District Council already applies to things such as solid waste, and we are looking at for water.

“However, this Council does not believe in full cost recovery for libraries and swimming pools.

“Being able to rate Government property may be a step in the right direction but not one that will provide significant benefits for the Kapiti Coast District.

“The report also advocates doing away with rating differentials. Kapiti Coast District Council does not apply a business differential but we do have a rural differential and removing that could have significant impacts on that sector.

“We already fund infrastructure through debt and I believe our debt loading is about right. We have never had significant investment holdings as some other Councils do.

“Generally I think we need to wait and see how the Government responds to the inquiry and then we can respond in an effective way rather than trying to second guess which options they may choose,” Mr Milne said.

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