Local Government NZ president Sam Broughton intends to embark on a fight-back against the Government’s most contentious “back to basics” proposal: caps on rates rises. According to the Government’s fact sheet, these are intended “to protect ratepayers from excessive rate increases, and to limit council spending on non-core activities”.
Broughton argues the plans announced last year by Luxon constitute an attack on local democracy – that elected councillors should be accountable to their ratepayers, not to central government. Councils are closer to their communities, he adds, so they understand infrastructure priorities better.
First of all it is simply untrue that it is simply infrastructure that leads to massive rates increases. It is spending decisions by councils in all areas.
A rates cap is a blunt tool, but there is a simple solution to refine that bluntness.
If a Council wishes to increase rates beyond the rates cap, then it has to put it to a referendum of residents with details of what additional projects would get funded. That way ratepayers get to decide what they are willing to fund.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders.
1 comment:
Absolutely. And ratepayers should get a say so about Maori Wards, the money spent on Maori consultation, the relevance of the Treaty at Local Govt level, and, indeed, the desirability and cost/benefit of continued membership to the wayward LGNZ. Things that Broughton and the latter's future, best consider.
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