Article: The argument against council rate caps

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

“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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Stop The Steal

Untangling the hidden costs of driving faster past schools

Yet another case of Big Brother Government in Wellington telling local councils what to do with huge costs associated and no funding – yet more of the multi-million dollar rip off that Wellington bureaucrats throw at ratepayers, who they clearly see as a bottomless ATM

“Councillors have been astounded by the inflexible parameters, risks to children and others’ safety, and the potential extra costs of consultation and physical safety enhancements. Auckland Council and Auckland Transport both opposed the Government’s automatic raising of speeds back to 50 km/h but the rule came into force anyway. AT already estimated publicly the road and sign changes could cost it $25m, which the Govt refused to subsidise.”

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