Graeme Edwards: Taxes Anchored

We have much to thank the ancient Greeks and Romans for - the concept and practice of Democracy is an outstanding example, lasting as it has for many centuries.

Churchill allegedly claimed it to be ‘the least worst form of governance’ and a quick review of other forms  of governance confirms his assertion.

Nonetheless like all great Western ideas it has been subject to abuse and along with its many strengths, has weaknesses. Perhaps the most common weakness is the practice of hopeful candidates for election enticing voters with extravagant promises that they neither can nor have any intention of fulfilling. 

Our current prime minister for  instance promised to reduce immigration into New Zealand which was a hot topic at the time.  On election of course, she walked away from that undertaking. 

A further weakness can sometimes lie in the calibre of the aspirants. The wish to be elected is no measure of likely competence.

Over a lifetime the writer has noticed a propensity for aspiring candidates for the Auckland  mayoralty to promise no rates increase, or at least a minimal increase. The city of course continues to grow and offer more and more services leading to the inevitable consequence in time of funding deficits. Auckland Council has a great asset base but is borrowed to the limit of fiscal responsibility.

Then comes the crunch as councilors search for new ways to pluck further feathers from the golden goose! The most recent is the petrol tax, which sailed effortlessly through.

Buoyed by this success the search was on for further  ideas.

In an act of unparalleled stupidity Auckland Council have proposed a tax on foreign flagged vessels of over 40m in length of  $23 per day per metre in Auckland’s waters.

By way of example a 45m super yacht  would pay a daily rate of $1035 inc GST for anchoring in the Hauraki Gulf - the Waitemata Harbour or Great Barrier Island perhaps - just for the  pleasure of sitting in our waters and breathing our air.  

Of course if these yachts are berthed at the wharves they would pay for the services. 

The marine industry is a huge contributor to Auckland city by way of jobs and revenue. The servicing and vitalling are big revenue earners, to say nothing of the wealthy owners' patronage of hotels, restaurants, care hire and the like.

Given that Council sends officers overseas to attract this business, it beggars belief that the idiocy of such a plan would even be considered, let alone proposed, especially in light of their support for the forthcoming America’s Cup defence.

Two Mediterranean harbour cities have in the past imposed such a charge on foreign flagged vessels with  catastrophic effect on their local economy. They were smartly reversed.

Hopefully with public pressure on the Council a modicum of commonsense will apply and the proposal quietly dropped.

Councilors may even like to remember that the city's motto is "The City of Sails"!

Graeme Edwards is the Chairman of Argyle Estates Ltd.