ZB ZB
Live now
Start time
Playing for
End time
Listen live
Listen to NAME OF STATION
Up next
Listen live on
ZB

Local government funding shortfalls raised in report

Author
Laura Dooney,
Publish Date
Mon, 2 Feb 2015, 11:17AM
Photo: stock.xchng
Photo: stock.xchng

Local government funding shortfalls raised in report

Author
Laura Dooney,
Publish Date
Mon, 2 Feb 2015, 11:17AM

Updated 5.49pm: Local Government New Zealand has released the first part of a report addressing funding shortfalls in local government.

The discussion paper details the findings of a major funding review that started last year.

President Lawrence Yule says councils spend around 10.5% of all public expenditure, but only raise 8.3% of public revenue.

He says a growing number of councils face financial challenges - as demand for infrastructure and services rise.

One of the solutions it's proposing includes co-funding on projects that have significant local and national benefit.

Spokeswoman Penny Webster says water meters are a tool which get people very upset - but puts water back in the control of ratepayers.

"If you're an elderly couple and two of you are in the house you might do washing once a week, if you don't have a dishwasher, why should you be subsidising the people down the road who have a dishwasher and are doing washing every day?"

Green MP Eugenie Sage says new ways of raising revenue, such as motorway user charges and regional fuel taxes, deserve to be considered by the Government.

"We think there needs to be a real look at alternative revenue sources for local government so it doesn't have to just rely on rates and user charges."

Business NZ chief executive Phil O'Reilly says it's valuable to have all sorts of ideas on the table to fund local government.

"It's quite important that we have the right debate about what local government should be doing in terms of the relationship with central government, and then how do we fund it?"

Local Government Minister Paula Bennett's welcoming the release o the paper and is endorsing the debate it's sparking.

However, she's making no comment on any of the specific proposals being put forward, saying the government will work with Local Government New Zealand, and other groups, after a final report is released later this year.

 

Take your Radio, Podcasts and Music with you