Source: PSA
The biggest union representing local government workers is calling on the Government to dump its rate cap idea which could spur councils to sell assets to meet rate increase targets.
“This is simply a populist ploy which should send alarm bells through local communities,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
“Nobody likes large rate increases, but this proposal will end up spurring councils to privatise assets to meet rate caps imposed by Wellington. The only winner out of that are corporates, not ratepayers. It’s irresponsible.
“Rates are the main tool councils have to ensure it can meet the needs of communities for quality facilities and services. Capping rates would see councils forced to make difficult decisions to run down facilities like libraries, sports grounds and pools, and services like local roads.
“How does that make any sense when many councils already struggle to maintain services and facilities?
“This idea is hypocritical. On the one hand the Government is giving power back to councils to manage its water infrastructure challenges yet is now wanting to tell councils how to manage its finances through a rate cap. Make up your mind.”
