Eric Ness: The 4% Rates Cap — Now We Find Out What Councils Really Think Is Essential

For years the council rates debate has followed a familiar pattern. Council announces another increase, ratepayers choke on their coffee, and council explains that everything costs more. Insurance is up, interest is up, construction is up, infrastructure is ageing, roads need repairing and pipes need replacing. Much of that is true.

But there is another part of the story that gets less attention. Councils are also doing far more than they used to.

Eric Ness: Labour, The Greens and Wellington's most popular $10.5 Billion

There is a wonderful new expression floating around election-year economics: headroom. It sounds reassuring. Spacious. Comfortable. The sort of thing a real-estate agent mentions just before you discover the ceiling slopes down to one and a half metres.

Labour says it has almost $10.5 billion of future operating allowances still unallocated. Barbara Edmonds says that gives Labour room to deal with whatever comes next. Labour also says its announced programme fits inside the existing $2.4 billion Budget operating allowance and that the books return to surplus.

Excellent. Except quite a few people already seem interested in the spare room.