NoMoreRates

The nationwide campaign to replace the present system of council rates with a fairer system which reflects ability to pay and value for money.

Media release 14 March 2012
New legislation needed to limit councils ability to increase rates above specified limits.

Councillors to be held liable for breaches of increase limits
[Statement from David Thornton]
Ratepayers across the country are increasingly angry at the level of rates being threatened as a result of over-spending and over-borrowing by many local councils.

Promises that Local Government Minister Nick Smith is investigating possible changes to the Local Government Act to place curbs on rates and council spending are welcome news – but such changes need to be strong enough to give ratepayers total protection from the current unfettered ability of local politicians and their army of bureaucrats to dig deeply into the pockets of ratepayers.

NoMoreRates is asking Nick Smith to introduce urgent legislation which would include the following key points,

• Place a limit on rates increases to the Rate of Inflation, as measured in the CPI, and to a maximum of 3%.
• Redefine the essential services local council must provide, and introduce rules on how non-essential services are to be funded.
• Withhold Government funding from Councils which breach limits, and hold elected members personally liable for any breaches of limits.
• Review the Report of the 2007 Independent Rates Inquiry to develop alternatives to rates as the main source of council funding.

NoMoreRates has been at the forefront of calling for local government reform and believe that the current unrest among ratepayers is a unique opportunity to bring councils back under strict financial control.

There is much talk among ratepayers calling for a ‘rates revolt’ and in some places that may happen – such action has been tried before and brought some respite as shown in the Auckland Ratepayers Rebellion of 2003/4, the campaign which resulted in lower Auckland Regional Council rates and lead to a change of council at the following election.

During that Ratepayers Rebellion more than 140,000 ratepayers withheld all or part of their rates – that represented one-third of all ratepayers in the Auckland Region.

However the situation in local government throughout the country is far too serious for such actions alone – what is needed is the firm hand of Parliament to bring in changes that will lead to new attitudes in local councils based on living with the means of ratepayers.
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