Next step is getting councils back to basics

Responding to today’s announcement of rates cap legislation, Taxpayers’ Union spokesman James Ross said the next step is stopping council waste at the source.

“Capping rates is a major victory for ratepayers nationwide, who cannot afford another term of 34 percent rates hikes. But limiting how much councils can charge is only half the battle.”

“A rates cap forces councils to make choices. Now the Government needs to make sure the axe falls on the nice-to-haves, not roads, pipes and rubbish.”

“Asking councils politely to just focus on doing the basics well is meaningless while the law still gives them the green-light to do almost anything. The next step has to be removing the power of general competence.”

Section 12(2) of the Local Government Act 2002 gives councils ‘full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction.’ This is known as the power of general competence.