Latest Dave

Is Returning GST To Councils ‘Ultra Left Wing Spin’?

Posted on by Dave Stewart

Mayors and chairs commented to the survey “that a share of the GST revenue generated in their districts should be returned to local government”, saying GST was the “clear favourite” revenue stream of people surveyed.

Southland Mayor Gary Tong told the survey Treasury should “actively look at” the amount of road user charges and GST paid by people in his region, which was then spent in other parts of the country.

Waipā District Council Mayor Jim Mylchreest said councils should get a “share of GST”, particularly the GST paid on council rates as well as a share of GST paid on the development of new sections.

“LAs [local authorities] and developers provide all of the services and take all of the risks and Central Government pockets the GST on every new section created,” Mylchreest said.

Act and National have recently floated similar ideas. National wants to at least explore the idea of councils getting the GST collected on rates, while Act has launched a policy to share half of the GST revenue earned from building a new house with whichever local council issued that house’s consent.

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Article: Bay of Plenty Regional Council Confirms Candidates for 2025 Local Elections

Posted on by Dave Stewart

Source The Bay of Plenty Regional Council has released its final list of candidates for the upcoming local body elections in October 2025. Governance Manager Steve Groom says he is pleased with the diversity and number of nominations received this year, noting that every regional council constituency will now hold an election. “We have more […]

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Article: Councillors tired of being ‘beaten up’ and blamed by central government

Posted on by Dave Stewart

In a statement yesterday, Local Government Minister Simon Watts said some households were getting frustrated by unfair rate hikes during the cost-of-living crisis.

It followed comments at the recent Local Government NZ (LGNZ) conference, where Watts compared councils to children and suggested that letting them do what they wanted might lead to bad choices.

Olds, who attended the conference, told his colleagues and LGNZ representatives that he was disappointed that councils continued to get “beaten up by central government” over things that were out of their control.

Councils had defended rising rates as they were dealing with increased infrastructure costs, unfunded mandates, insurance, and inflation.

LGNZ chief executive Susan Freeman-Greene said tensions between local and central government were “a challenge”, and that councils bore the impact of frequent changes to government policy.

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Article: Calls for ‘department for local government’ to oversee councils

Posted on by Dave Stewart

“There are some steps available to central government such as the appointment of an observer or the replacement of a council with commissioners … but that tends to be used as a last resort and only after ministerial intervention.”

The agency he suggested would be set up like the Public Service Commission, “with the ability to provide early, proactive support for local government and effective advice to ministers when issues arise”

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Article: Govt winds up council reform storm

Posted on by Dave Stewart

“We all want lower rates increases. I want lower rates increases, I know you want lower rates increases, I hear from my community they want lower rates increases. But it can’t be at the expense of our children picking up the tab because of our negligence today.”

The Selwyn mayor tells Newsroom a key problem is councils have few alternatives to raise money.

The best tool the Government could give councils, in his opinion, is to return GST spending on new houses locally. “That would be a game-changer for us,” he says, noting between 1000 and 3000 houses have been built each year in Selwyn over the past five or six years.

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Article: Teen cycles from Whakatāne to Parliament for Māori wards

Posted on by Dave Stewart

After biking almost a thousand kilometres encouraging people to ‘say yes to Māori wards’, a 15-year-old Whakatāne High School student pulled into Parliament’s forecourt with a wheelie.

Jack Karetai-Barrett left Whakatāne on 28 June aboard his Focus Atlas 6.7 gravel bike covering more than 894km to Wellington.

“If I could keep going I would, but school holidays finish soon and I won’t be able to get home in that time,” he said.

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Article: The argument against council rate caps

Posted on by Dave Stewart

OPINION: What do we do about 78 councils, rising rates and the need to improve efficiency and focus on the basics?

Some argue the Government should simply pass a law to cap rates and let ‘the market’ sort itself out. But history tells us blunt interventions often generate unintended consequences.

When councils have focused purely on rate minimisation in the past, they’ve generally cut infrastructure maintenance, inspections and deferred capital investment, contributing to a significant proportion of New Zealand’s $200 billion infrastructure deficit.

Government wants to grow the economy and speed up housing development. Yet, ironically, it needs councils to enable housing growth, through investments in roads, water, transport and other essential services.

Capping rates without addressing the funding model simply kneecaps councils’ ability to invest. Without money, projects don’t proceed and assets deteriorate.

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Article: Capping rates rises would make things ‘worse not better’ – Chris Hipkins

Posted on by Dave Stewart

“Having created a situation where councils are being forced to put up the rates to pay for things like water infrastructure, the government’s now trying to blame them for doing something that they really don’t have a choice but to do.

“Ultimately if the government don’t want councils to increase rates, they’ve got to find another way of funding the water infrastructure that we need.”

Local Government New Zealand president and Selwyn District mayor Sam Broughton said rates capping could be “disastrous for communities” and leave councils without the means to fund essential infrastructure.

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Article: Coalition finds a handy distraction in council bashing

Posted on by Dave Stewart

Councils are getting around 10% of their budgets from Crown grants when in other countries it’s more like 15-20% or more. Or, as the S&P analyst says, “you’re told to do more infrastructure spending, and you’re getting less support”.

This is the opposite of localism and resetting the relationship between central and local government that Christopher Luxon and National campaigned on two years ago. Instead, giving the housing minister the power to override democratically elected council decisions, even if it’s an interim measure ahead of new RMA laws, smacks of subverting the democratic process.

And it’s those changes to the Resource Management Act that the coalition Government is itching to get completed because it presents a compelling reason to get rid of the country’s 11 regional councils.

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Article: Council or bust for community board stalwart

Posted on by Dave Stewart

“I care for our district and I want to see thriving communities for all peoples – and this means making difficult, thoughtful, future-focused decisions within a constrained council budget. These decisions are never black and white. Good decision-making relies on balancing competing priorities for the benefit of all.”

“I have a solid understanding of local government through Community Board work, and through my time on the National Community Boards Executive Committee. We’ve been advocating for community boards to be harnessed and supported to be a more effective tool for better local decision-making.”

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Article: John MacDonald: Capping council rates isn’t a solution

Posted on by Dave Stewart

The other major issue is the whole funding structure for local government. Which is why I think the Government is taking a very narrow approach here. How on earth the Government thinks it could put a cap on annual rates increases without looking at the wider issue, I don’t know. And that wider issue is the fact that local councils are being asked to do more and more under their own steam, without any extra funding to make it happen. Example: the Government wants more tourists coming here, but what about the infrastructure needed to support that growth? The Government doesn’t pay for that. Local councils do.

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Christopher Luxon loves localism, until locals have the wrong opinions

Posted on by Dave Stewart

For a prime minister who is often accused of having no ideology, localism is one thing Luxon deeply believes in. “Centralism over localism doesn’t work,” he told parliament last year. He described centralisation as “a robbery of power and control from local communities.” He reiterated it in his impressively boring speech at Waitangi this year: “We, like you, believe in localism and devolution, not centralisation and control.”

Localism is a belief that unites all three parties in the coalition. It’s arguably the biggest point of difference between this government and the previous Labour government, which made moves to centralise health, polytechnics, water and the public service.

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Despite decades of cost cutting, governments spend more than ever. How can we make sense of this?

Posted on by Dave Stewart

Many of the managerial techniques that have arrived in the public sector over the austerity years – such as results-based pay, corporate contracting, performance management or evaluation culture – have their origins in a budgetary revolution that took place in the 1960s at the US Department of Defence.

In the early 1960s, Defence Secretary Robert McNamara was frustrated with being nominally in charge of budgeting but having to mediate between the seemingly arbitrary demands of military leaders for more tanks, submarines or missiles.

In response, he called on the RAND Corporation, a US think tank and consultancy, to remake the Defence Department’s budgetary process to give the secretary greater capacity to plan.

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Māori wards Explainer – What’s happening and what you can do

Posted on by Dave Stewart

Māori wards and constituencies are vital to local decision-making and have many benefits
for our communities. However, we have to vote in the upcoming local body elections to retain them.

This two-page resource provides trustworthy information on:

Why we have Māori wards and how they work
The key issues now
How our communities benefit from Māori wards
Actions you can take to retain Māori wards

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