INDEPENDENT NEWS

LGNZ reviewing local government funding

Published: Wed 9 Apr 2014 01:45 PM
LGNZ reviewing local government funding
Local Government New Zealand (LGNZ) is launching a review of local government funding, to find a sustainable model for the future as demographic and economic factors continue to change rapidly.
New Zealand councils have a high reliance on property taxes, which is unusual by international standards. The common international approach is for local government systems to have a multiple taxing power, important for both resilience and fairness reasons.
LGNZ President Lawrence Yule confirmed today at the LGNZ April Quarterly Media Briefing that the sustainability of local government funding has become an increasingly important policy issue in the face of rapid demographic and economic change. He advised the LGNZ Local Government Funding Review will identify new funding options and alternatives that can complement councils’ current funding tools.
Mr Yule says many regions are facing the complex challenge of populations which are static or declining and ageing, resulting in lower household incomes and reduced ability to cope with property tax increases and under-utilised infrastructure, with smaller and poorer populations over which to spread the cost of maintenance and renewal.
Other councils are facing major growth pressures to fund large-scale infrastructure investments to meet the needs of future generations and sustain economic growth, with limited funding tools at their disposal. The required growth in funding requirements will place severe pressure on a pure property tax model.
Mr Yule says property taxes may soon no longer be appropriate or sustainable as the sole taxation form for many councils.
“Complementary alternatives are required. Our focus is on developing a strategy and model that is sustainable for New Zealand communities in the long term,” Mr Yule says.
“Examples of funding tools that may be reviewed for appropriateness in a New Zealand context include local income taxes, local consumption taxes, congestion charges, visitor charges and payroll taxes.”
A cross-sector working party will be formed for the LGNZ Local Government Funding Review during April 2014.
*Ends*

Next in New Zealand politics

More people getting into work
By: New Zealand Government
Boost in Whānau Ora funding to keep changing lives
By: New Zealand Government
Kaikōura $10.88 million boost in tourism & business
By: New Zealand Government
Plans to protect the future of whitebaiting announced
By: New Zealand Government
New resource for schools on climate change
By: New Zealand Government
Regulations pave way for quality medicinal cannabis
By: New Zealand Government
Gordon Campbell on a White Island inquiry
By: Gordon Campbell
7000 more young people on the dole under Labour
By: New Zealand National Party
Government failing to get Kiwis back into work
By: New Zealand National Party
Labour's soft line on welfare sees 25,000 more on benefit
By: ACT New Zealand
Benefit numbers continue upward trend
By: Lindsay Mitchell
Dunne Speaks: Turia is Right on Whanau Ora
By: Peter Dunne
Whānau Ora claim must be fast tracked, says Māori Party
By: The Maori Party
$10.98 million of PGF funding announced
By: Kaikoura District Council
Proposed whitebait rules are pitiful, won’t save native fish
By: Forest And Bird
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media