More Hypocrisy from Central Government
10 June, 2009

Larry Baldock, Leader of the Kiwi Party, today noted that there is one word MPs cannot use in the debating chamber, in reference to their colleagues, and that is the word hypocrisy.

“They cannot even refer to it as the ‘H’ word without the Speaker of the House calling them to account.” said Mr Baldock. “Yet Local Government Minister Rodney Hide’s proposal to make Local Government accountable to their communities through referenda on all non-core spending certainly brings exactly that word to mind!

“One has to ask the question, would Central Government ever entertain the idea of holding referenda on its spending or the raising of taxes in such a democratic way?”

Larry Baldock believes that what is really needed to help reduce the increasing burden upon ratepayers across the country, is for Central Government to change the whole basis of Local Government Funding.

“Review after review has been carried out by former parliaments but no recommendations for major change are ever adopted,” said Mr Baldock.

“What Local Government need is a Minister that will go to bat for them around the Cabinet table rather than being their constant critic.

“Implementing the Kiwi Party’s Local Government polices, such as having central Government sharing a percentage of its revenue with Local Government, would make a major difference.

“Many Local authorities around the world are able to raise revenue from local sales taxes. Here in NZ we have a nationwide tax called GST that is paid by visitors and non-ratepayers as they enjoy services in our local communities, yet none of that revenue is available to Local Councils to pay for those services. It is unsustainable to continue to place the cost of local services and facilities just upon property owners.

“Capping the percentage of Uniform Annual General Charges at 30% of rates further restricts councils from spreading the costs across its community.

“The Central Government practice of ‘clipping the ticket’ by imposing a tax on a tax though charging GST on Rates only further adds to the problem. The Kiwi Party would remove the GST on rates immediately by zero rating them for GST purposes.”

ENDS

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