The counter productive nature of this Government is astounding…
Ratings agency S&P warns Government rates cap risks squeezing council budgets
A leading credit ratings agency says the Government’s rates cap will squeeze council finances and make it harder to balance the books.
Prime Minister Christopher Luxon, speaking alongside Local Government Minister Simon Watts last Monday, implored councils to “stop doing dumb stuff” as he announced annual rates increases would be limited to between 2-4%.
The Government has brushed off concerns that the rates cap will erode core council services such as public transport, rubbish collection and libraries.
But S&P Global Ratings – one of the big three agencies overseeing government and council finances – has warned that a rates cap could strain the already debt‑laden budgets of New Zealand’s councils.
…the exact same thing happened with 3 Waters.
3 Waters answered the legal issue of Māori interests in water AND it was to lower the cost to users, instead dark ag money funded astroturf right wing influencers to spread racist lies about da Maaaaaaaaaaareees is stealing da water’ and now you have…
Councils expected to foot a near $48 billion bill for Local Water Done Well
Councils are expecting to spend almost $48 billion on water infrastructure in the next decade under the Government’s Local Water Done Well reforms.
…Labour’s plan was $41billion and it created large, multi-regional water service entities that would own and borrow for water assets centrally. That would have shifted debt and borrowing capacity off council balance sheets and allowed bigger, cheaper borrowing at scale and ultimately lower costs to households.
Instead we get a more expensive cost without the ability to lower costs to ratepayers with Māori legal action against their fresh water interests now in front of Court.
The rates cap alongside the dissolving of Regional Councils is a Taxpayers’ Fake Union wet dream.
So option 1 of the new councils is an urban vote, a town vote and 3 rural votes with the deciding process being a majority vote out of 5.
Option 2 is a geographically weighted vote that gives urban 70%, Town 15% and the 3 rural votes 5% each.
Option 1 sets up the rural sector to have all dominance, Option 2 weights it to the urban areas.
Which voting option will the Rural friendly National Party ensure passes?
The Rates Cap has been a Taxpayers’ Fake Union talking point for 2 years because a strangled local democracy process that can’t maintain assets has less chance of fighting development – this is a power grab by the Right!
Implementing a rates cap, will lead to a firesale of local infrastructure Councils can’t afford any longer!
Rather than a rates cap, why not have the Government pay rates on Crown land, rebate GST on rates and construction materials used in a council area, and rebate GST from tourism spending in council areas!
The irony here is that the only reason rates are going up is because of Government pushing costs onto local council!
The Government’s replacement for 3 waters is going to cost $48 billion!
Why aren’t voters angry at the Government for pushing extra rates costs onto their local council rather than blaming their local councils?
Taxpayers’ Fake Union have earned their fees to have manipulated you so utterly.
Silly hobbits.
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