National blames Government for rate rises

The National Party is blaming the Government for increases in local government rates.

National party local government spokesman John Carter today said rates were far outstripping inflation, in part due to the amount of new laws passed by the Government putting extra responsibilities on councils.

Three councils had unveiled draft rate rises today -- Northland regional council 13.4 per cent, Queenstown District Council 9.9 per cent and Waikato District Council 5.5 per cent.

He said rates had risen on average by 45 per cent over the past seven years.

"Homeowners are increasingly carrying the cost for Labour's policy settings."

Labour's inflationary spending was also likely to hit them in the pocket through further rises in the official cash rate.

The Government has ordered an independent inquiry into rate rises.

It says the rises are a reflection of a lack of infrastructure spending in the 1990s. Councils were now having to catch up.

- NZPA