MEDIA RELEASE

21July 2015

[Statement from David Thornton]

LGNZ funding review is more about councils spending more rather than helping ratepayers to pay less.

The report of the Local Government Funding Review is fortunately quite brief, not surprising as it is, in the main, a re-statement of issues and proposals covered in various reviews carried out over the last 15 years.

This review, from Local Government New Zealand, is clearly aimed at shifting a good slice of central Government income into the hungry purses of local councils.

Ratepayers will have no problem in applauding demand that the Government should pay rates on all Crown land. That should bring in a fortune to councils from all the schools, universities, and other, education establishments within their borders.

But central Government is then faced with making up for that extra cost which is likely to be detrimental to the whole education budget.

The same applies to hospitals and other ‘medical’ land, and conservation land.

The LGNZ report is basically a grab for more government money but with rates still as the ’cornerstone’ to fund local councils.

The glaring omission is any proposal to deal with the rating system itself, which almost everyone agrees is unfair and potentially devastating for low-income household.

The LGNZ report is more about councils spending more rather than helping ratepayers to payless.

ends

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