Independent Rates Inquiry

Submission to Rates Inquiry
30 April 2007

This is a brief final submission following earlier submissions at two public meetings in Auckland.

Over the past 12 months NoMoreRates has received hundreds of suggestions, comments and stories from groups and individuals representing thousands of ratepayers around the country.

There is a consistent message – the present system of majority funding by way of rates based on property values is neither sustainable nor acceptable.

These messages also include preferences and suggestions for alternatives to rates.

This final submission briefly outlines the overall picture which has emerged over the last 12 months. What Councils Do

The overwhelming call from ratepayers and residents is for councils roles and functions to be redefined and essential or core services to be separately defined and funded. A Future Funding System

Ratepayers are not generally in a position to produce detailed proposals for new forms of funding for local services but they are clear as to the form of tax they would find acceptable.

Essential and ‘core’ services to be defined and funded by any of the following means;-

A citizens tax – poll tax – with central government welfare benefit available. This tax would be set by local councils and increases would be ‘capped’.

Local income tax – collected centrally and funded to councils on a per capita basis.

Increase in GST and distributed by central government on a per capita basis.

Any new services required of local government as a result of central government direction/legislation to be fully funded by central government.

Desirable services to be funded by any of the following;-

User pays at the time of use

Local/regional lotteries

Local/regional Community Trusts – funded by grants, donations, fundraising. Interim Measures

While the overall response is a call for the abolition of the current system, there is acceptance that it will take some time to develop and implement a new system. Meanwhile ratepayers will continue to face rate increases beyond an acceptable or affordable level, and there is a justifiable demand for relief now. The following are interim measures which could be developed, costed and implemented during the next year – and totally in place for the 2008/9 financial year.

• Remove GST from rates. [Could be done overnight]
• Repeal power of general competence from LGA 2002. [Could be done within 6 months]
• Central Government to fully fund all roading except for new roads built by developers in new sub-divisions. [Could be done progressively over next 12 months]
• Public transport subsidies to be fully funded by central government on a basis to be agreed. [Could be done progressively over next 12 months]

While supporters of this campaign are generally residential ratepayers they also include small business owners and rural ratepayers. We believe that our submissions are in many ways along the same lines as the other major ratepayer groups such as Federated Farmers and the various Business lobby organisations.

David Thornton Founder/organiser of NoMoreRates

[NOTE Copies of hundreds of emails confirming the above submission are available to the Inquiry subject to payment to cover costs] Terms of Reference
Click here to view the Terms of Reference Submissions

• Federated Farmers final submission
  Click here to download as pdf
• BusinessNZ final submissions
  Click here to download as pdf
• Submission of Porirua Steering Group
  Click here to download as pdf
• Submission from Fairer Way to Fund Local Govt Lobby Group (Titahi Bay)
  Click here to download as pdf
• Submission Far North District Council
  Click here to download as pdf

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