Pages

Wednesday, October 22, 2025

Ryan Bridge: My thoughts on rates caps


A rates cap is one of those policies that immediately sounds appealing.

Look no further than yesterday’s CPI number. It’s one of your top three inflation feeders.

So, throw a cap on them. Tie their hands behind their backs. Reign 'em in!

Get rid of the hundred-thousand-dollar bike rack here, the million-dollar disco toilets there, the coffee machines for staff over there.

But in practice, how do actually make it work without starving these councils of revenue they actual need to fix the pipes?

I spoke to Ben Bell from Gore yesterday. He said almost 90% of council spending there goes on basics - pipes and roads.

The rest is "nice to haves". Libraries and swimming pools etc.

There’s no club sandwiches as council meetings. They're drinking instant coffee.

And yet, Gore’s rate increases have been double digit or close to it for several years. They’ll be close to double digits again this year.

Despite that, the good people of Gore have re-elected Bell for a second term.

So, we say we want lower rates, of course we do, but the question is what will it cost to us? Will capping them actually hurt us? Our local economies, productivity, efficiency.

Last week, Wayne Brown told me on Herald Now that Auckland could have a ZERO increase next year if it wasn’t for the City Rail Link spending coming online.

It’s a major transport project. It'll, in theory, benefit Auckland and the country. It was paid for by both Jaffas and taxpayers.

If we want lower rates, we could just not run any trains on the tracks.

But is that sensible.

Don’t get me wrong, I’m the first to criticise the big spending bozos who chuck money at dumb stuff.

But most council spending isn’t that.

Most of it is stuff we need.

D-day is looming for the government’s plan to cap rates, and it needs to be a measured response. We need spending on pipes and roads to continue and waste on disco loos flushed down the dunny.

Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.

4 comments:

LNF said...

A good starting point with Council costs / spending is salaries. At a guess Councils are the largest employers in any region, the salaries are higher than other employers and the number of staff could easily be slashed. My other guess is that salaries consume 50% of rates revenue

Anonymous said...

Ryan's usual high standards have dropped here.

It is lazy reporting to use the behemoth train set bill left to mayor brown, as an excuse for the other wallet robbing councils in nz.

The anglo saxon exposed Tauranga Mayor Drysdale is busy with double digit rates rises and increasing tauranga council debt whilst giving $38m of ratepayers property to tribal interests.

It must be thirsty work because drysdale's council spent $470,000 on coffee this year.

Saxon also reports Tauranga Council pays 300 staff over $120000 per annum whilst achieving sloth level productivity.

So come on Ryan, it only took 5 minutes of searching to debunk the rubbish you wrote in this article.

Keep that up and I'll start calling you Jack Tamr.

https://youtu.be/akvHcw4f2XY?si=oULUvgwowLywquMA

Anonymous said...

The ORC appears to have a 5% increase in wages for staff locked in every year. How can that happen?
Staff numbers and costs are responsible for outrageous rates increases.

Anonymous said...

Ben Bell might need to have another look at his financial statements publicly available on their own website. It shows approx 50% of expenditure is on pipes and roads. A quarter is spent on swimming pools, arts, parks etc. and while I suspect a lot of Gore residence would be comfortable with having a pool etc it is not true to say there are no "nice to haves" in the Gore budget.