Local Government New Zealand (LGNZ), which represents the nation’s 78 local authorities, wants greater flexibility in the way its members fund their operations.
LGNZ wants to introduce road user charges to help fund the maintenance and upgrading of transport infrastructure, and better manage congestion. It also wants to see levies and fuel taxes charged to raise revenue for transport.
It says property rates are too narrow to address the changing economic and demographic challenges facing councils according to BusinessDesk.
LGNZ has released a manifesto with 10 proposals it says will help authorities create incentives to support economic growth, and wants to set up special economic zones to try out new ideas according to president Lawrence Yule.
The list includes proposals to drop mandatory rating exemptions for certain categories of land, examining ways to lift the uptake of rates rebates, allow road user charges, levies and fuel taxes to raise revenue for transport, introduce profit sharing with councils for local investment and on mineral royalties, and allowing tourism levies where appropriate.
In February, the body suggested new taxes and government support as it seeks to overcome the gap between spending and revenue, where councils account for about 10.5% of public spending, but raise only 8.3% of all public revenue.
LGNZ’s 10-point plan says property rates on their own “could never be an efficient and effective means” for addressing the raft of challenges councils face, and that trial zones would let authorities tailor their responses to specific regional needs.
On funding requirements imposed by central government, the local authorities’ body wants councils to be consulted on the cost implications they might face from Crown decisions, and to receive co-funding where policy aims to produce a national benefit.
It also wants a local share of royalties on mineral extraction to recognise the infrastructure councils put in place to enable mining.
LGNZ said it will develop a plan to push the manifesto, and will start working on the proposals that don’t need agreement with business or central government.
