Whanganui mayor steps up fight to ease rates burden

Whanganui Mayor Andrew Tripe says the rates system is fundamentally flawed. Photo / Bevan Conley

Whanganui Mayor Andrew Tripe has made it a priority to push for a new local government funding model that eases the burden on ratepayers.

He said the rates system was fundamentally flawed and the funding model for local government was unsustainable and needed to change.

“In my view, the situation is untenable and unsatisfactory, especially given the significant rate rise forecast for next year just to sustain the current work programme. It will be the same for councils across the country.

“While business activity in Whanganui is still strong relative to the rest of the country, we’re acutely aware that times are tough for many households.”

Whanganui District Council on Tuesday locked in an average residential rates rise of 8.1 per cent but revealed dramatic variations that saw some of the city’s poorest suburbs facing increases of up to 19.5 per cent.

Tripe is backing a call last month from the Future for Local Government review panel for central government to stump up $1 billion annually – the equivalent of GST charged on rates – to help finance local government. He also supports the panel’s recommendation for central government to pay rates on Crown property.

“That would help alleviate the burden on ratepayers. The GST take [for Whanganui] would be $10 million on its own.

“The flow of money from our community to the Beehive outweighs the flow to us, and so does the level of influence we have with legislation and reform, including unfunded mandates and centralisation causing dilution of local government influence on decision making.

“My priority is to push for central government to adopt the recent Future for Local Government recommendations on GST and for central government to pay rates on Crown property.”

The review panel’s recommendations include changes to the Local Government Act to embed intergenerational wellbeing as a core function of councils, explicitly recognising councils as Treaty partners, and redesigning council operating models and structures.

Tripe’s first step was to nominate himself and council chief executive David Langford to a Local Government New Zealand (LGNZ) panel being set up to review the 17 recommendations. He said the panel would be selected at the LGNZ conference in Ōtautahi Christchurch at the end of the month.

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