The PSA is calling the government’s proposed
legislation to cap rates at four per cent economic
incompetence.
“The combination of no new taxes and
rates caps would be extremely challenging for councils,”
Public Service Association Te Pūkenga Here Tikanga Mahi
national secretary, Duane Leo, says.
“A Standard &
Poors Agency report from earlier this year said that rates
caps are highly likely to affect services, for example,
reducing library and pool hours, as well as impacting on how
much councils can invest in core infrastructure.
“One
major concern we have is that ultimately rates caps would
result in credit downgrades, negatively impacting on
councils’ ability to borrow and driving up interest
costs.
“As a result, we’ll not only see reduced
public services but limited investment in critical
maintenance. We’re already seeing in real time the
consequences of not investing in water and roads –
Wellingtonians can tell you all about it with the critical
failure at Moa Point.
“Rather than treat councils as a
liability, the government – and any future government –
needs to demonstrate how they plan to financially enable
councils to deliver the services they’re mandated
to.”
About PSA:
The Public
Service Association Te Pūkenga Here Tikanga Mahi is
Aotearoa New Zealand’s largest trade union, representing and
supporting more than 95,000 workers across central
government, state-owned enterprises, local councils, health
boards and community
groups.
Advertisement – scroll to continue reading
