NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Aucklanders say no to asset sales

Herald online
20 May, 2012 08:21 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Len Brown says alternatives to rates rises are being considered to fund major projects in Auckland. Photo / Natalie Slade

Len Brown says alternatives to rates rises are being considered to fund major projects in Auckland. Photo / Natalie Slade

Auckland Mayor Len Brown says Aucklanders have made it clear they do not want strategic assets to be sold, and other alternatives to rates rises are being considered to fund the city's projects.

His comments come after Local Government Minister David Carter hinted at a Government preference for councils around the country to opt for asset sales to fund projects, rather than increase rates.

The $2.86 billion central rail loop remains the prime project in Mr Brown's first 10-year budget, which faces a bumpy ride from councillors on Wednesday.

The day before Finance Minister Bill English unveils the Government's Budget, Mr Brown and councillors will lock horns in the Auckland Town Hall over a $58 billion Super City budget.

Mr Brown said the council could not back off the need to invest in the future of the city and deal with major growth, but the budget had to be fair, just and prudent to the city's 516,000 residential and business ratepayers.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Despite growing criticism towards the central rail loop, Mr Brown said it still had strong support.

The mayor's determination for the 3.5km underground rail loop will be tested with a call by Citizens & Ratepayers and other right-leaning councillors to freeze funding on the project until it has Government backing.

The Government has serious reservations about the project.

Advertisement
Advertise with NZME.

Orakei councillor Cameron Brewer yesterday said it was crazy to spend $112 million in the coming financial year on land purchases for the rail loop when it had no funding certainty.

Mr Brown has put the Government down for half the cost of the project in the 10-year budget. Ratepayers are being asked to pay 14 per cent ($400 million) and alternative funding sources, such as tolls, the remaining 36 per cent or about $1 billion.

Alternative funding including tolls, higher parking charges and a regional petrol tax are expected to be settled on in the next six weeks, most of which need Government approval.

C&R leader Christine Fletcher said the time was not right for a big budget and a big spend-up.

Discover more

Tourism

New $18.6m design for terminal

20 May 05:30 PM
Freight and logistics

Mayor's rail goal faces budget bump

20 May 05:30 PM
Business

Business leader wants fresh look on rates

20 May 05:30 PM
New Zealand|politics

Asset sales 'bad news' - Greens report

21 May 06:44 AM

But Mr Brown, who is proposing an overall rates increase of 3.6 per cent this year, said rates would stay around the rate of inflation for the next 10 years.

Local Government Minister David Carter last week said the Government was close to agreeing to a request from Mr Brown to smooth out the changes so no ratepayer got an increase or decrease greater than 10 per cent.

Last night Mr Brown refused to say if his election promise of completing the rail project by 2017 at the latest was slipping, saying he believed it could be completed "this decade".

Another sticking point is the level of the uniform general charge, which Mr Brown has vowed to keep at $350.

Apart from shaving $10 million off a cruise ship terminal and applying pressure on Waterfront Auckland not to come to ratepayers to put $16 million into a super yacht facility, there are few signs of cost-savings by Mr Brown to his draft budget.

Asset sales urged

Advertisement
Advertise with NZME.

Ahead of the council's budget announcement, Local Government Minister David Carter urged councils around the country to consider the sale of strategic assets rather than rates rises to fund projects.

Mr Carter told TVNZ's Q & A yesterday that local governments were in a similar position to central government, which intends to balance the books by selling up to 49 per cent of shares in the state-owned energy companies, and a further stake in Air NZ.

"If they [local governments] find a way where they can sell down some of their assets to maintain the funding, to deliver some other infrastructure required within in their communities, in principle, I would support that. But having said that ... it would still be a decision for local councils to make," Mr Carter said.

"If they had shares in an airport or shares in a port company, they may well decide they could sell down some of those shares to help them provide the infrastructure which their community's demanding of them.

"I think if you look at my own city of Christchurch where we clearly have an extraordinary situation, the Christchurch balance sheet is strong with a number of assets, the council needs to make the decision.

"But from a ratepayer point of view, from a ministerial point of view, I think the Christchurch City Council needs to think carefully about rationalising some of those assets to help it meet its huge challenge with the rebuild of the city."

Advertisement
Advertise with NZME.

He said if any council was proposing to put up its rates by "2 percent, or 3 percent, or 4 percent above inflation" he would be asking why, and the Government did have the ability to intervene.

"We want to put some financial tests and thresholds on to local government so that they must justify their rate increases, justify their debt increases."

Len Brown told TVNZ's Breakfast this morning Aucklanders have made it clear they did not want strategic assets, such as shares in the Port of Auckland and Auckland International Airport, to be sold.

Mr Brown said the council would be consulting with ratepayers over alternative funding methods, such as road tolls, network charges, infrastructure bonds and petrol charges, in the coming weeks.

Labour's state-owned enterprises spokesman Clayton Cosgrove said Mr Carter's comments proved beyond doubt the Government's intention to see Canterbury's assets sold.

- Herald Online, Bernard Orsman, APNZ

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from New Zealand

New Zealand

Crash between Napier, Taupō turns fatal after victim succumbs to injuries in hospital

01 Jun 06:08 AM
Premium
BusinessUpdated

Ex-Rangitoto student is twice in the gun in Trump's war on Harvard

01 Jun 05:27 AM
New Zealand

Cop who stomped on man won't be prosecuted because it's not 'in the public interest'

01 Jun 04:52 AM

‘No regrets’ for Rotorua Retiree

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

Premium
Ex-Rangitoto student is twice in the gun in Trump's war on Harvard

Ex-Rangitoto student is twice in the gun in Trump's war on Harvard

01 Jun 05:27 AM

Jamie Beaton explains how Chinese students can be invited to join the Communist Party.

Cop who stomped on man won't be prosecuted because it's not 'in the public interest'

Cop who stomped on man won't be prosecuted because it's not 'in the public interest'

01 Jun 04:52 AM
Watch: Invercargill police get ‘incredi-bull’ surprise trotting down road

Watch: Invercargill police get ‘incredi-bull’ surprise trotting down road

01 Jun 04:21 AM
Mercedes ploughs through Tauranga bakery

Mercedes ploughs through Tauranga bakery

01 Jun 03:07 AM
Why Cambridge is the new home of future-focused design
sponsored

Why Cambridge is the new home of future-focused design

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP