NoMoreRates.com

Statement from founder/organiser David Thornton.

Crisis approaching for local council funding

Many North Shore Ratepayers Will Disagree With Mayor On Rates Capping.

Few North Shore ratepayers will support their Mayor’s view that there should be no legislation to limit council rate increases – particularly as North Shore City Council recently approved the highest rates increases in the Auckland Region.

Local Government Minister Rodney Hide is currently reviewing the financial provisions of the Local Government Act with a view to giving ratepayers and citizens greater control over council expenditure and the levels of rates increases.

‘Capping’ rates increases to a prescribed formula is one way of doing this.

Many ratepayers throughout the country have long supported ‘rates capping’ as a means of controlling council expenditure.

But what is really needed is to develop alternatives to rates as a way of funding local government – local income tax, local sales taxes, bond issues, turnover taxes on business and even a per capita [poll[ tax.

The 2007 Rates Inquiry made it clear that the present rating system would be unsustainable within ten years, and went on to recommend that rates account for no more than 50% of council income – as against the current levels of up to 68% for some councils

A crisis is approaching for local council funding – and that may force the government into legislating for rates capping, at least until alternative funding sources are introduced,

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