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The Dunedin Mayor’s pitch to local councils in his campaign to be elected the new president of Local Government New Zealand is nuts.
Despite the vast majority of ratepayers considering the move silly, Dave Cull wants to use ratepayers’ money to lobby the government to force cat owners to register their cats.
The proposal would also see annual cat fees, cat curfews and even cat rangers to patrol the streets looking for cats off their designated property, or breaching curfew hours (yes really!).
This is the ultimate in the local government trying to find expensive solutions to a problem that doesn’t exist.
Earlier in the month, LGNZ released its latest performance survey showing record low levels of confidence in the decision making of local government. With the so-called ‘leaders’ of the sector too busy talking about cat rangers to focus on New Zealand’s enormous infrastructure deficit, no wonder local government is in crisis.
Local Government New Zealand, is spending considerable ratepayer money on a campaign promoting local income taxes, regional fuel taxes and regional GST-style regimes to increase the tax burden of local councils. LGNZ today launched a review document on various options for new taxes. You can download the paper here.
This diagram illiterates well the growth of local government (source):
New Zealand’s average rates bill has doubled in the last 20 years, tracking at twice the rate of inflation.
Instead of focusing on the quality of councils' spending decisions, LGNZ appear to be using ratepayer money on studies and propaganda promoting new taxes. We have long been concerned that LGNZ too often represents the interests of councils, rather than those paying the councils' bills! Nowhere in the discussion paper for example, do we see a disciplined analysis of why local government spending is out of control.
We've also been alerted to emails where LGNZ spin doctors are sending draft opinion pieces to local mayors so that they can 'leverage local media' and promote these new taxes.
In the LGNZ press release, the lobby group's President, Laurence Yule, says that:
“The goal is not to increase the overall tax burden for New Zealand, but rather to determine whether a different mix of funding options for local government might deliver better outcomes for the country.”
Mr Yule is telling the public that the goal isn’t to increase the overall tax burden while at the same time releasing a report that isn't on ways to save money, but on ways to tax more.
Former North Shore City Councillor, North Shore City Council David Thornton writes:
LGNZ Review is about more money for more spending
Few ratepayers object to the principal that all citizens should contribute to the cost of running their communities, and that those contributions should be within the ratepayers’ ability to pay.
The Local Government New Zealand funding review revisits many of the issues raised in the Independent Rates Review of 2007 and repeats some of the same conclusions reached then.
The difference between the two reports is that the 2007 review was looking for alternatives to rates, while this new report is aimed at raising new funds in addition to rates.
In other words LGNZ, on behalf of all councils, wants to spend more, and needs more money to feed those expansive ambitions.
We agree. The Taxpayers' Union isn't against new taxes per say. Our view is that new taxes should replace old ones (i.e. an equal decrease to compensate). In the case of local government though, LGNZ's efforts are so the local government spending binge can continue...
The Taxpayers’ Union has been provided a copy of a leaked report Local Government New Zealand (LGNZ) commissioned. The report was prepared in response to work by the Taxpayers’ Union to improve transparency in local government. Earlier today Ratepayers’ Report – interactive local government league tables – launched at ratepayersreport.co.nz.
We've also been leaked confidential briefing papers for council CEOs. These appear to have been prepared by LGNZ's spin doctors as an aide for councils to avoid any criticism resulting from questions relating to Ratepayers' Report and other efforts by the Taxpayers' Union.
We approached LGNZ earlier in the year and sought its help to ensure New Zealanders got a fair picture of how their local council is doing. Instead, LGNZ went into defence mode and hired an accountancy firm to discredit the expert analyst we were using. They were not interested in ensuring ratepayers got an accurate picture, rather creating reasons why we shouldn’t be providing the public with the information.
Despite promising that the report would be made available to the Taxpayers’ Union, we’ve only seen it today because it was leaked to us. The report suggests that LGNZ is more interested in toeing the party line, rather than identifying the councils which are under-performing.
The report, by Grant Thornton, appears to have little basis for what they deem as ‘acceptable’ for the financial measures they apply to councils. They've not provided a league table, or a scoring system and even the data points on the graphs do not reference the councils they relate to.
It appears they’ve put in the data then picked the spot that shows that everyone is doing well.
The report makes soft criticisms of Kaipara District and Waitomo District Councils - but then defends them. It makes assertions that all under-performing councils are dealing with their issues. To us it demonstrates that LGNZ is a lobby group to protect local councils rather than a champion of best practise.
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