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Responding to the Labour Party’s announcement that they intend to subsidise grocery stores to try and enable competition in New Zealand’s grocery sector, Taxpayers’ Union Policy Adviser, James Ross, said:
“There is a lack of competition in New Zealand’s grocery sector, and that does lead to extortionate food prices. But Labour seem to have missed that the reason for this is that the Government keeps propping up the big two supermarket chains.
“There is a massive contradiction in Labour’s story here. Given the enormous profits generated by the big two grocery chains, if there was an opportunity for foreign competition to establish themselves here than they would jump at the chance regardless of whether they received taxpayer-funded handouts. The fact that they haven’t just goes to show that, thanks to the Government interfering in the market, competing with Foodstuffs and Woolworths is not currently possible.
“Overly restrictive resource management under the RMA and restrictions on foreign investment make it nigh-on impossible for competitors to establish themselves in New Zealand. Coupled with Labour’s bizarre ruling that new grocery chains will have to supply their competition at wholesale prices should they be successful, this sends investors running. Just chucking more taxpayer dollars away in corporate welfare isn’t going make these problems go away, and so food prices will stay sky-high.
“Labour must at least be commended for their new-found transparency. Rather than just subsiding grocery store owners by stealth with their GST fiasco, at least with this new policy they’re being open with the public about their plans to line the pockets of grocery chain fat cats.”
Yesterday the Taxpayers’ Union announced the winner of its competition for the Aucklander with the highest percentage increase in rates and user-charges.
The winner is Mrs Glenys Smith of Howick, whose rates have more than doubled since 2003.
Mrs Smith is a classic example of an Auckland householder paying more but getting less. In 2003 Mrs Smith’s rates were $1,371 in 2003. They are now more than double, up to nearly $3,100 for 2013/2014.
Mrs Smith also pointed out in her entry that, “When the wastewater charges were taken off the rates, the rates didn’t go down to compensate!”
Mrs Smith wins a KraftMaster petrol lawnmower (perfect for mowing the berms).
The other winner is Mr Colin Shearer of Sunnyhills. Though Mr Shearer didn’t provide the required user charge details to qualify for the lawnmower, his un-capped rates increase was the highest we received. As a discretionary prize, the Taxpayers’ Union is giving Mr Shearer a weed-wacker.
Mr Shearer’s uncapped rates increase is 34.2 per cent, from the 2011/2012 base year. That means that his rates will be over a third higher, in less than four years.
While Len Brown is hiding behind the ‘average’ figure of 2.5 per cent, this is merely an attempt to disguise just how much extra some Auckland households are paying. As the entries show, many Aucklanders are paying much more, while the Council is reducing services such as berm mowing.
Entries close tomorrow for our competition for the householder who can provide evidence of the highest percentage increase in Auckland Council rates and user-charges. The prize is a lawnmower - just perfect for mowing those berms.
At the same time the Auckland Council is reducing services, a quick flick through the 50 or so entries we've have in so far, show many rates and user charge increases well over the 10% "cap".
The terms and conditions are available here.
Please scan and email your entries to [email protected] as any sent by post will no longer arrive in time.
The Taxpayers’ Union this afternoon announced that it is offering a lawn mower to the householder who can provide evidence of the highest Auckland Council percentage increase in rates and user-charges.
We understand that some Auckland residents have suffered cumulative rate increases of over 30 per cent in the last few years. At the same time the Auckland Council is reducing services such as berm mowing.
We are worried that while Len Brown is hiding behind the ‘average’ figure of 2.5 per cent, this is merely an attempt to disguise just how much extra some Auckland households are paying. It ignores, for example, increased user charges.
The proposed rate increase is almost double the rate of inflation. Aucklanders should be expecting more, not less, services from their Council.
Our press release is available here.
COMPETITION TERMS:
The New Zealand Taxpayers’ Union Incorporated seeks rates and user-charge invoices for Council services showing the total uncapped percentage increase in rates and user-charges since the 2011/2012 baseline. The resident who provides the largest percentage increase for the same property, as determined by the Taxpayers’ Union, will win.
Documentation must be sent to the Taxpayers’ Union, PO Box 10518, The Terrace, Wellington. To be eligible, entries must be received before 5pm Friday 29 November 2013.
Entrants are only eligible to win the prize if they include their contact email and phone number on the documentation entered, are willing to certify the accuracy of the documentation provided and are willing to have their name publicly disclosed.
Please contact the Taxpayers’ Union (via [email protected]) if you require further information.
The winner will receive a CraftMaster Petrol Lawnmower model KM375PM, or similar.
The Taxpayers’ Union decision on entitlement to the prize is final.
Joining the Taxpayers' Union costs only $25 and entitles you to attend our annual conference, AGM and other events.
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