Source: Public Service Association Te Pūkenga Here Tikanga Mahi
The National Party’s decision to rule out a bed tax over the weekend is an empty act of political theatre – and worse, bad economic policy, the PSA says.
“A bed tax would give councils much-needed revenue to fund the essential services that New Zealanders rely on in their local communities,” Public Service Association Te Pūkenga Here Tikanga Mahi national secretary, Duane Leo, says.
“Between this decision and the incoming rates caps, local government organisations will be forced to reduce their services, cut staff and introduce measures like user pays and privatisation.”
Leo points to a Standard & Poors Agency report from earlier this year that said New Zealand councils spend 90 per cent of their revenue on core services like roading, water, and other infrastructure.
“Local government has become a convenient scapegoat for people critical of so-called excessive public spending. But the reality is that there’s no more fat to cut in local government.
“Te Waihanga The New Zealand Infrastructure Commission already puts our national infrastructure deficit at $200 billion. If we don’t enable councils to invest in our infrastructure, we’ll see more and more catastrophic failures like Moa Point this last summer.
“At the end of the day, councils can’t magic money out of thin air.
“The PSA is urging all political parties and the future government to commit to a sustainable funding system so that councils can get on with running local communities and fixing critical infrastructure.”
The PSA represents 13,000 workers in local government organisations around the country.
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.