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Sunday, July 5, 2026

David Farrar: Labour Deputy Leader didn’t know the Government doesn’t pay rates


Wayne Brown interviewed Carmel Sepuloni, and asked her why the Government doesn’t pay rates on land and buildings it owns. Her answer was “I didn’t know that this was the case”.

Amazing that such a basic piece of knowledge was unknown to Labour’s proposed Deputy Prime Minister. I think I have known that for 30 or so years. It is very common knowledge.

The answer incidentally is that the Crown set up local government by statute, so the Crown doesn’t pay taxes to a subsidiary body. It would also create perverse incentives if the Department of Conservation had to pay a massive rates bill on all the national parks it conserves. Then you would have real pressure to reduce, not grow, the conservation estate.

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

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