Local government spokesman David Rose says while there are a few “shocking” increases proposed by some councils this year, most are keeping a lid on spending right now.
But Federated Farmers had submitted on 70 of 78 long-term plans around the country.
“Debt is going to increase by 98% over the decade: the sector will go from $9.4 billion to $18.4 billion. Most of it’s due to the Auckland Council where debt is planned to increase by 175% to get to $12.5 billion.
“Although councils are reining things in at present, it does not appear to be a long-term trend so we’re right behind the Government reforms to ensure efficiency and prudence.This will pinpoint essential services and funding policy should be part of the reforms.
“Rates are based on property value which doesn’t necessarily relate to use of services.”
Rose says he agrees with Prime Minister John Key’s recent comments that local government cannot have a bottomless pit of debt.
Key has said if the last decade’s rates increases had been the same as the previous decade’s, each rate bill in New Zealand would be lower by $500 per annum, or $1 billion in total.
“That’s why the focus on what councils do is really important. With the right to do ‘social spending’ you can come up with almost anything… you can build a stadium and let your roads run down,” says Rose.
The Kaipara District Council was one Rose cited as having a “shocking” increase.
It has proposed a 31% increase across rural and urban, but is reassessing rates after protests by residents.
Rose also says Environment Southland plans to employ 17 more people this year.
