Government Announces Survey of Tips for Boards to Fundraise

Finance Minister Grant Robertson told boards that he would consider new ways to raise funds, including the ability to set targeted rates and special taxes to fund local projects

. This is a survey of the cost pressures of local councils and how to finance and fund them.

Auckland Mayor Phil Goff and others demand that councils receive more fundraising mechanisms. Robertson said that the Auckland Council had already reached the maximum level of debt, but that it had significant infrastructure problems.

"We have had the example of a regional fuel tax in Auckland but we are also studying other funding mechanisms as special agencies, using rates. targeted, other initiatives that would allow boards to raise funds alongside the government and the private sector. "[19659002] In his speech, Mr. Robertson said the government was already trying to reduce the pressure through measures such as the fuel tax, the tourism tax and the use of new target rates in the land transport declaration

. told Q + A that the scoring system was "obsolete" and needed to be changed.

"I do not think it's a good thing that the local government has to go after the government in a case … on a case-by-case basis for funding. We are elected at the local level. We are responsible at the local level.

He still believed that boards should at least receive the GST from the rates, but the government was not enthusiastic about it.

Robertson said the review of local government funding was part of it would explore options for new financing and financing tools, regulatory changes, reasons for cost increases, the how investment decisions were made, the affordability of tariffs and whether regulatory changes were necessary

Robertson said that he would also look at what the central government could do by reducing red tape to relieve local councils.

He said the pressures on local councils varied considerably, whether it was the need for infrastructure or not. for growing populations or tourism in areas with lower population density.

Many boards faced aging infrastructure and the effects of climate change were increasingly a problem [19]. 659002] "We do not want taxpayers to be the only ones carrying this burden."

David Cull, President of the NZ Local Government, said the survey was welcome after LGNZ requested that the issue be examined.

"Our regions, cities and districts should not rely entirely on the central government to solve the complex problems we are currently facing, and it is essential that we give local authorities access to financing and financing tools for make the difference. "

LGNZ research has shown that a strong dependence on rates to fund local infrastructure and services did not allow boards to invest in long-term growth projects, such as infrastructure to deal with extreme weather and earthquakes