Source: Public Service Association Te Pūkenga Here Tikanga Mahi
The PSA is calling the government’s proposed legislation to cap rates at four per cent economic incompetence.
“The combination of no new taxes and rates caps would be extremely challenging for councils,” Public Service Association Te Pūkenga Here Tikanga Mahi national secretary, Duane Leo, says.
“A Standard & Poors Agency report from earlier this year said that rates caps are highly likely to affect services, for example, reducing library and pool hours, as well as impacting on how much councils can invest in core infrastructure.
“One major concern we have is that ultimately rates caps would result in credit downgrades, negatively impacting on councils’ ability to borrow and driving up interest costs.
“As a result, we’ll not only see reduced public services but limited investment in critical maintenance. We’re already seeing in real time the consequences of not investing in water and roads – Wellingtonians can tell you all about it with the critical failure at Moa Point.
“Rather than treat councils as a liability, the government – and any future government – needs to demonstrate how they plan to financially enable councils to deliver the services they’re mandated to.”
The Public Service Association Te Pūkenga Here Tikanga Mahi is Aotearoa New Zealand’s largest trade union, representing and supporting more than 95,000 workers across central government, state-owned enterprises, local councils, health boards and community groups.