Unitedfuture Supports Call to Reform Local Government Funding

UnitedFuture leader Peter Dunne is backing calls local government funding reforms.

But he says the wider relationship between local and central government is the more important issue which needs to be resolved first, to better inform future funding decisions.

“It is far too haphazard at present – no-one seems to know where the boundaries lie,” he says.

Mr Dunne says the current rating system is neither adequate to meet local government’s needs, nor fair in every instance.

“At the same time there is often overlap between central and local government activities – housing, economic development and tourism promotion are good examples – with much duplication, and citizens effectively paying twice for the same service.

“It is all somewhat of a muddle,” he says.

Mr Dunne says there needs to be clear definition of the respective roles of local and central government, and that funding lines can be better established once that happens.

“While the various mechanisms suggested by local government are all worth consideration and should not be instantly dismissed as some have already done, the debate about fundamental role and purpose should be had first.

“There is room for more revenue sharing by central government to ensure that citizens do not end paying once as a taxpayer and then again as a ratepayer for essentially the same thing.

Mr Dunne says that the principle of localism, which UnitedFuture promotes, should be the starting point for the discussion.

“We cannot go on sweeping the matter under the carpet, as we have been doing effectively since the abolition of the Provinces in 1876,” he says.

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