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The New Zealand Taxpayers’ Union is calling on Local Government Minister Simon Watts to close the Auckland IMSB voting loophole, after legal advice from Franks Ogilvie confirmed the Government can do so through a simple amendment to the Local Government (System Improvements) Amendment Bill currently before Parliament.
The advice confirms the Bill can be amended to remove voting rights from unelected appointees of the Independent Māori Statutory Board.
Taxpayers’ Union spokesperson Tory Relf said:
“Simon Watts has said it is too difficult to fix the loophole that allows Auckland Council to give voting rights to unelected IMSB appointees."
“However, the legal advice confirms the Local Government (Systems Improvement) Bill already before Parliament can be used to fix this. Minister Watts can act now if he chooses to do so."
“The Taxpayers’ Union is working with our sister organisation, the Auckland Ratepayers’ Alliance, to campaign on this because it directly impacts Aucklanders. But every New Zealander should be concerned when unelected appointees are given voting power over ratepayer decisions."
“The Government has accepted the principle that only elected members should vote on council committees. Aucklanders deserve that same democratic protection."
“If ratepayers do not like how councillors vote, they can vote them out. They cannot do that with unelected appointees. That is why this loophole needs to be closed.”
Councillors Duped Into Thinking $7.7 Million Website Was an App
The Taxpayers’ Union is slamming Christchurch City Council after The Press revealed the Council’s MyChristchurch “digital platform” has cost ratepayers $7.7 million, despite councillors initially being led to believe they were funding an app.
Taxpayers’ Union spokesman Josh Van Veen said:
“Christchurch ratepayers have forked out $7.7 million and ended up with a website. If elected representatives did not know what they were approving, ratepayers deserve to know why.”
“The Council can dress it up as a ‘digital platform’, but that does not explain how this project has cost the equivalent of 1,962 households' worth of rates. At a time when rates are soaring, every dollar blown on bloated IT projects is a dollar not going to core services.”
“This fiasco shows exactly why local government reform is needed. Elected councillors are meant to be in charge, but too often management controls the information and leaves them playing catch-up.”
“Council officials need to come clean on where the money went, why councillors were left in the dark about what was being delivered, and how a website ended up costing ratepayers millions.”
“Ratepayers need a system that gives councillors the power to properly scrutinise spending and stop bureaucrats pulling the wool over the eyes of the people elected to hold them accountable.”
Rates showdown tonight: Hastings businesses face rates increases of up to 85 percent
The Taxpayers' Union says small businesses and jobs are at immediate risk in Hastings following the District Council's new revelations that commercial rates are going up next month by an average of 27 percent in the Hastings CBD and a massive 34 percent elsewhere in the region. Industrial property rates are reported to be soaring by 24 percent.
Ahead of a crisis meeting scheduled for tonight, organised by the Hastings and Havelock North Business Associations, the Taxpayers’ Union can reveal that some small businesses face rates increases of up to 85 percent.
The unprecedented one-year rates hikes are being driven both by Council decisions and new valuations from Quotable Value (QV).
Taxpayers’ Union Executive Director Jordan Williams says this is the worst possible time for any rates increases, let alone of the magnitude revealed by council data only yesterday.
“Combined with the war in Iran, oil shock, global downturn, returning inflation and rising interest rates, the massive rates hikes mean dozens of Hastings businesses face the same fate as Wattie’s and McCain’s, potentially costing Hawke’s Bay hundreds of jobs,” Mr Williams said.
“When did Council chief executive To’osavili Nigel Bickle and his deputy Bruce Allan know the rates proposal in the draft annual plan would push up CBD rates by 27 percent and other commercial rates by 34 percent? Why were these impacts not put before ratepayers before now? Ratepayers expect consultation, not nasty shocks on the eve of their new rates bill."
“And when did they tell new Mayor Wendy Schollum and her councillors?"
“Who will take responsibility for this fiasco?"
“Mayor Wendy Schollum recently called on Parliament to inquire into why rising costs were forcing Hastings’ major employers to close. She doesn't need an inquiry, she needs a mirror. Skyrocketing rates are driving both the cost of living crisis and businesses out of Hastings."
“The Taxpayers' Union is hopeful Mayor Schollum fronts up at tonight’s meeting and announces how she is going to stop Hawke’s Bay businesses paying any more than the 8.9 percent rates increase she advertised and which businesses have budgeted for."
“Ratepayers need transparency about what she knew and when, and must hold her and her councillors to account.”
Tonight's Emergency Ratepayer Meeting is from 5:30pm in The Shakespeare Room at ToiToi Centre.
We did it!
After years of campaigning, exposing, and protesting, Simon Watts has finally acted.
Today, the Government announced that only elected councillors will be able to vote on council committees.
That means the days of Mayors appointing teenagers (yes, seriously) or race-based "representatives" onto council committees to screw the scrum and vote numbers are over.
Minister Watts announced this afternoon an amendment to Local Government (Systems Improvements) Bill restricting voting rights to elected members only.
This is a win for the Taxpayers' Union and for ratepayers across the country.

It means if someone wants a vote on rates, spending, borrowing, and council policy, they'll need to earn it from voters first.
Frankly, that should never have been controversial.
Appointed reps were always counter to the constitutional foundation: "No taxation without representation."
That's why we fought so hard to protect democratic accountability, calling it out when councils across the country handed over voting rights to unelected appointments.
Friend, some people have tried to turn this debate into one about race, for us, it was always about democratic accountability.
Two years ago, when the Hastings District Council decided to give voting rights to their unelected "youth councillors", it prompted the Taxpayers' Union to get the bubble machine out and host a youth councillor-friendly committee meeting outside the council.

The decision was made to give unelected youth councillors the same voting rights as democratically elected councillors on committees by the deciding vote from the then-Mayor, Sandra Hazelhurst. The story resonated with supporters, and we had dozens of supporters come down to our council meeting.
The Hastings District Council's decision was also lampooned at last year's Jonesie Awards.
Eventually, thanks to the pressure from ratepayers who demanded democratic accountability, Hastings backed down, and youth councillors were drafted for a limited scope of "youth-related" matters.
But it didn't stop with Hastings, we also called out Tauranga for their unelected iwi appointees.
In December 2024, Tauranga City Council proposed to make unelected permanent appointments of Iwi reps on every one of the Council’s standing committees.
We mounted an urgent campaign, with 6185 supporters using our email tool within 12 hours to push back against the unelected appointees on every standing committee.
Every person who used the tool emailed all the Tauranga councillors, with more than 55,000 emails being sent.
Sadly, the Mayor won the vote, and Tauranga ratepayers gained unelected appointees on all their council committees with full voting rights.
Back then, after the vote was lost, we shared our remaining campaign plan, a two-step campaign to keep holding councils to account and convince the government to change the law.
We started investigating councils across New Zealand, exposing where unelected appointees were being handed influence over rates and spending decisions, and building the case for reform.
At the time, we promised supporters that although we'd lost the battle in Tauranga, we hadn't lost the war on democratic accountability, and we wouldn't give up.
So, working alongside allies such as ACT MP Cameron Luxton, we took up the issue at Parliament and called out what he rightly described as an attack on democratic accountability.
As a ratepayer in Tauranga, I know that for Cameron it was personal. He (and ACT) deserve much credit for forcing this onto the coalition's agenda.
So after years of pressure, the Government has now accepted the principle we've been arguing all along: if you want a vote on how ratepayers' money is spent, you should first win the support of ratepayers at the ballot box.
Thank you Friend. For supporting the effort, taking action, and for making this policy victory possible.
This win for democratic accountability is on you!
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The Taxpayers’ Union is slamming the Government’s decision to hand councils $400 million in “growth incentives” while walking slow to bring council costs under control by capping rates now.
Taxpayers’ Union spokesperson Tory Relf said:
“Local Government Minister Simon Watts has let ratepayers down. Handing councils $400 million in additional revenue without bringing forward a rates cap means councils are under even less pressure to rein in their costs.”
“Town Halls don’t have a revenue problem, they have a spending problem. Giving councils a bailout in the form of a new taxpayer-funded subsidy, no matter how good the intent, is akin to funding more beer for an alcoholic."
"Giving councils more revenue before forcing discipline is the wrong way around."
“A rates cap should have come first. Without it, extra revenue will simply give councils more room to avoid the hard decisions."
“Simon Watts should be protecting ratepayers from runaway councils, not handing councils $400 million and hoping they suddenly discover restraint.”
The Taxpayers’ Union is blaming Local Government Minister Simon Watts for the biggest rates hike in Super City.
Taxpayers’ Union spokesperson Tory Relf said:
"Simon Watts promised to cap rates, but bizarrely delayed the implementation until the next term of Parliament. That means Auckland Council is able to blow up rates bills now, and will fully admit it's to beat the new law."
“Rather than be forced to deliver the savings promised when the Super City was established, yet again Auckland Council has chosen to dig deeper into the pockets of struggling ratepayers."
“Local Government Minister Simon Watts has let Aucklanders down. Unfortunately, this just a harbinger of what is to come in town halls across the country as councils clamber to lock in higher rates before a cap takes effect in 2029.”
"It's also a major warning to ratepayers elsewhere who are staring down the barrel of forced amalgamations. Far from saving money, the Auckland example shows Watts seems to empower high rates and more wasteful council spending."
The New Zealand Taxpayers’ Union can reveal that New Plymouth District Council will spend $4.37 million demolishing Metro Plaza and a further $2.53 million on “daylighting” the Huatoki Stream, as part of the 2021 Ngāmotu New Plymouth City Centre Strategy.
Rhys Hurley, Taxpayers Union Investigative Lead said:
“RNZ reported the Metro Plaza demolition at just $1.1 million, only a quarter of the actual cost. When the public-facing figure is that far off, it points to a serious transparency failure."
"Ratepayers shouldn’t have to dig through long-term plan workshops or file information requests just to find out what they’re paying for.”
“This is a classic example of a ‘nice-to-have,’ spending millions to turn the stream into a city focal point after the last council hit the New Plymouth District with a 37.73 percent rates hike."
“It seems the council's bureaucrats were prioritising pet projects like renaming parks, removing cars from the city centre, and co-governance arrangements in this strategy ahead of front-footing this information to the people paying the bills.”
The Taxpayers’ Union can reveal that disgraced Waikato Regional Councillor Robert Cookson – one of the so-called ‘Rates Control Team’ who u-turned on his pre-election pledge just six months into the job – has put himself forward for selection to stand as a New Zealand First candidate.
Jordan Williams, a spokesman for the Taxpayers’ Union, said:
“Robert Cookson is a man in politics for pure self-interest. He’s proven to voters his contempt for democracy by failing to keep his word. And now that he's cooked his goose in local government, he's greasing up to NZ First for another gig.”
“Unlike the Rates Control Team, NZ First is a party of conviction and integrity. NZ First must not let this turncoat sneak into the party.”
“The Taxpayers’ Union would certainly ensure local voters are aware of Mr Cookson’s record in local government should he run for Parliament. The billboards would write themselves.”
Responding to reports that Waitaki District Council considered but rejected consulting ratepayers on a 9 percent rates increase option, instead only presenting options of 19-45 percent, Taxpayers’ Union spokesperson Tory Relf said:
“Waitaki ratepayers have already been smashed with a 34.8 percent rates hike over the last three years, now they are being asked to choose between increases of 19, 27, or 45 percent. While budget adjustments are unavoidable in Waitaki in order to fulfil their water delivery requirements, efficiencies could still be found elsewhere. It’s not mandated that they have to increase rates, it’s mandated that they have to invest more in their water infrastructure."
"Even so, the real scandal is that Council apparently knew there was still a lower option and chose not to put it to the public. According to unconfirmed minutes reported by the Otago Daily Times, the reason was that ‘the 9% increase might be more popular with the community but would leave less financial flexibility’. In other words: don’t ask ratepayers, because they might pick the cheaper option.”
“Minister Watts cannot keep pretending this is a problem for 2029. He has created exactly the wrong incentive. By announcing a rates cap but delaying it until 2029, he has effectively told councils to get their hikes in now. If the Minister is serious about protecting ratepayers, he should bring the cap forward and stop councils using the next three years as a last-chance spending spree."
“The Taxpayers’ Union will be writing to Minister Watts inviting him onto Taxpayer Talk to defend why ratepayers should wait until 2029 while councils like Waitaki race to lock in double-digit hikes.”
The 2026 Ratepayers’ Report – the local council league tables – shows that among New Zealand’s biggest urban councils, staffing costs have become a major burden on households.
While Auckland runs the country’s largest council machine in absolute terms, three other councils stand out for punishingly high staffing costs per household. Tauranga is costing households $2,047 in staff spending alone, Hamilton City $1,955, and Wellington City $1,919.
Across the five councils, at least 324 council staff are paid more than $200,000 a year, with 88 paid $256,800 - more than a Government minister (outside of cabinet).
Taxpayers’ Union spokesman Josh Van Veen said:
"At a time when families are cutting back, councils are asking ratepayers to fund ever-larger payrolls and management structures."
"For households feeling the pressure of high rates, these figures confirm exactly what they have long suspected: too much of their money is being swallowed by council staffing costs before a single pothole is filled."
"Wellington, Hamilton, and Tauranga lead the pack on a per-household basis. Auckland may spread its costs across a bigger base, but it still runs a vast bureaucracy that would make even Wellington blush."
"These figures suggest that the idea of 'public service' appears to have disappeared from local government. In some small towns now, the best paid jobs are at the local council. That's not sustainable."
"Local councils often claim that rates hikes are needed to fund infrastructure. But time and time again, the extra money goes on staffing. That is why capping rates to inflation is overdue."
NOTABLE FINDINGS
Tauranga is the most staffing-expensive of the metro councils on a per-household basis, with staff costs of $2,047 per household.
Wellington has the densest workforce, at 19.3 FTE per 1,000 households, and the highest consultant-and-contractor spend per household at $736 per household.
Hamilton is the most top-heavy structurally, with 26.8 percent of staff in management/comms roles.
Auckland ratepayers are not just funding services; they are propping up a bureaucracy with 948 managers and 77 communications staff.
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With your support we can make the Taxpayers' Union a strong voice exposing waste and standing up for Kiwi taxpayers.
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