Responding to news that Christchurch City Council is proposing an 8 percent rates rise, Taxpayers’ Union spokesman Josh Van Veen said:

“Delaying the rates cap will cost ratepayers across the country, and Christchurch is no exception. Rates need capping now, not three years down the road.”

“Christchurch households are paying the price for the Government’s dilly-dallying. Another 8 percent rates hike is planned this year, on top of a staggering 24 percent increase over the past three years.

“With Local Government Minister Simon Watts postponing action until 2029, councils have every incentive to load costs onto ratepayers now and lock in a higher baseline. That doesn’t just mean higher rates this year; it means higher rates every year from here on out.”

The Taxpayers’ Union is backing a proposal by Christchurch City councillors to freeze the pay of chief executives and directors at council-owned companies, saying it is a positive step that should now be extended more broadly across the council.

Taxpayers' Union spokesperson Tory Relf said:

“This is a constructive start, and we commend councillors willing to show restraint at the top. The Council’s chief executive has already acknowledged the pressure on ratepayers by taking a pay cut herself, and that example of frugality should now be reflected more widely across the organisation.”

“Christchurch City Council still employs more than 1,000 staff earning over $100,000 a year, including 45 paid more than a backbench Member of Parliament. As households brace for another significant rates increase, it’s fair to question whether this level of senior pay is sustainable.”

“Ratepayers are being asked to tighten their belts. It’s only reasonable that the same discipline shown by the chief executive is applied throughout senior management.”

“This isn’t about targeting individuals, it’s about priorities. With rates continuing to rise, the Council must show it is managing costs responsibly and living within its means.”

Christchurch City Council spent $350,208 on entertainment, gifts, and catering in 2017 – including $51,572 on milk, reveals the New Zealand Taxpayers’ Union.

This makes Christchurch City the council with the highest level of ‘indulgence spending’ in New Zealand (aside from Auckland Council, who say they are unable to provide equivalent figures).

The bulk of these expenses ($336,130) came from catering, with the largest source of such expenses being the Antarctic Office, which spent $54,348, followed by the all-of-council spend on milk, at $51,572, followed by catering for citizenship ceremonies, at $36,840.

Fifty grand spent on milk alone is an astounding figure, that reflects just how bloated Christchurch’s army of council bureaucrats has become. Either that, or the Mayor is taking milk baths.

Catering expenses are largely non-essential, and should be near first in line for budget cuts when ratepayers are getting squeezed. The fact that the Antarctic Office, totally tangential to core council business, managed to spend $54,000 on wining and dining should warrant an audit from councillors.

Canterbury ratepayers are also under the pump from the Regional Council, which spend $287,087 on entertainment, gifts, and catering, including $155,253 at one catering business, Pulp Kitchen Catering.

Ecan’s indulgence spending was higher than any other regional council in the country. For comparison, Wellington Regional Council’s total equivalent spend was $37,450.

Below are spending figures for all Canterbury territories, ranked from highest total to lowest.

Christchurch City Council
Entertainment: Included with gifts and catering
Gifts: $14,078.42
Catering: $336,130.00
Total: $350,208.42

Canterbury Regional Council (Ecan)
Entertainment: Included with gifts and catering
Gifts: $8,125.70
Catering: $278,962.19
Total: $287,087.89

Ashburton District Council
Entertainment: $20,370.67
Gifts: $4,036.88
Catering: $81,330.76
Total: $105,738.31 

Waimakariri District Council
Entertainment: Included with gifts and catering
Gifts: $7,989.23
Catering: $69,915.91
Total: $77,905.14

Timaru District Council
Entertainment: $1,065.93
Gifts: $2,936.65
Catering: $40,967.73
Total: $44,970.31

Waitaki District Council
Entertainment: $0.00
Gifts: $0.00
Catering: $25,958.41
Total: $25,958.41

Hurunui District Council
Entertainment: $0.00
Gifts: $3,664.62
Catering: $9,232.64
Total: $12,897.26

Mackenzie District Council
Entertainment: $0.00
Gifts: $779.46
Catering: $8,528.32
Total: $9,307.78

Selwyn District Council
Entertainment: $0.00
Gifts: $0.00
Catering: $9,060.00
Total: $9,060.00

Kaikoura District Council
Entertainment: $5,596.87
Gifts: $1,063.50
Catering: $1,795.02
Total: $8,455.39 

Waimate District Council
Entertainment: Included with gifts and catering
Gifts: $3,615.00
Catering: $3,729.13
Total: $7,344.13

All figures were obtained under the Local Government Official Information and Meetings Act.

Breakdowns for Christchurch City Council and Ecan are available here:

Christchurch City Council catering (including milk)
Christchurch City Council gifts
Ecan catering
Ecan gifts

According to an article in The Press, the Christchurch City Council is to approach the government regarding the ownership costs of the city’s proposed major facilities. That then shifts the burden from the city’s ratepayers to the country’s taxpayers.

Council trying to lighten load for city ratepayers

“The city council does not want ratepayers bearing the ownership costs of all the central city’s major new facilities and is talking to the Government about alternative options.

…

Mayor Lianne Dalziel told The Press the council was talking to the Government about ownership arrangements and the timing of some of the projects.”

Dr Michael Gousmett has written to us suggesting a different solution:

Shifting the burden from ratepayers to the country’s taxpayers might be fair and reasonable given the underlying reason for having to do so, that is, a natural disaster. 

Has the council considered approaching the ratepayers instead, not to ask for increased revenue from rates which according to the council’s 2013 financial report generated $277 million, or 30 percent of the council’s income of $938 million, in revenue?

The mayor said the council was “agnostic” over whether the Crown or a private sector partner ended up owning and operating the new facilities, but it did not want to carry all the costs.

I am suggesting something else – asking the ratepayers if they would invest in these assets through a share or bond issue by the council to contribute towards the cost of their construction. 

As well as having a sense of ownership, ratepayers could be given preferential treatment by way of a dividend paid at a higher rate, with the council also offering shares to non-ratepayers as well. 

The dividend could then be applied against the rates by way of a non-taxable rebate, or alternatively treated as income in the hands of the ratepayer, whichever they choose to suit their personal tax position. 

We think it's an idea worthy of discussion. What do you think? Drop us a line, or pop a message on our Facebook page.