Local government shake-up 'long overdue' - Feds
Federated Farmers says it is cautiously welcoming signals from the Government that a major shake-up of local government is on its way.
They've revealed that the average for city and district councils is an eye-watering 14% hike this year on top of the 15% rate hikes at regional councils.
Special mention goes to West Coast, Wellington, Central Hawke's Bay and Gore for topping the 20% mark.
The union also found that at nearly every council, the proportion of spending going to roads, pipes, pumps, etc. has been reducing compared to that spent on staff payroll, back-office bureaucracy, etc.
Analysts agree non-tradeable inflation, driven in no small part by rates, is key to reducing inflation, yet it's hard to see any evidence of councils cutting fat and focusing on core services.
