Hats off to the Christchurch City Council.

Which is telling the Government today that its idea of forcing a cap on council rates increases is “unrealistic and unworkable”.

Which is a polite way of saying “rates caps are a daft idea, so just drop it right now”.

And that’s what I think too. I’ve always thought it’s a daft idea to force local councils around the country to increase rates by no more than 2 to 4 percent each year. It sounds brilliant, but it’s never going to work.

The Christchurch council says even at the upper range of a 4 percent cap, it would be forced to cut costs by up to $120 million a year.

Which confirms to me that the Government either has no idea or no interest in the financial realities local councils are dealing with.

Christchurch city council says rates caps would force cuts to essential services, lead to a decay in assets, delay investment in critical infrastructure, and reduce the council’s ability to repay debt.

Not only that. It says they would drive up fees and charges. Which the Government isn’t being totally upfront about.

Because, just before Christmas, a Cabinet paper was quietly published which shows we’re only being told part of the story.

In the paper, the local government minister says the rates caps are intended to “incentivise greater use of user charges, which have declined in recent years”.

Which is what the Christchurch city council is warning us about today.If councils are forced to limit annual rates increases to somewhere between 2 and 4 percent, we’ll just end up paying more in other ways. How do you feel about higher parking fees? Higher dump fees. Paying more to use your council pool. Higher consent charges. Life won’t be cheaper, it will be more expensive.

I’ve always known that this idea isn’t actually going to deliver us any benefits.

This cabinet paper and the people who actually know a thing or two about how councils work - Christchurch city council staff and councillors - are proof.

No matter how much you might think your local council needs to rein-in the spending, this idea of rates caps won’t make one bit of difference.

LISTEN ABOVE

Hats off to the Christchurch City Council.
Which is telling the Government today that its idea of forcing a cap on council rates increases is “unrealistic and unworkable”.
Which is a polite way of saying “rates caps are a daft idea, so just drop it right now”.
And that’s what I think too. I’ve always thought it’s a daft idea to force local councils around the country to increase rates by no more than 2 to 4 percent each year. It sounds brilliant, but it’s never going to work.
The Christchurch council says even at the upper range of a 4 percent cap, it would be forced to cut costs by up to $120 million a year.
Which confirms to me that the Government either has no idea or no interest in the financial realities local councils are dealing with.
Christchurch city council says rates caps would force cuts to essential services, lead to a decay in assets, delay investment in critical infrastructure, and reduce the council’s ability to repay debt.
Not only that. It says they would drive up fees and charges. Which the Government isn’t being totally upfront about.
Because, just before Christmas, a Cabinet paper was quietly published which shows we’re only being told part of the story.
In the paper, the local government minister says the rates caps are intended to “incentivise greater use of user charges, which have declined in recent years”.
Which is what the Christchurch city council is warning us about today.If councils are forced to limit annual rates increases to somewhere between 2 and 4 percent, we’ll just end up paying more in other ways. How do you feel about higher parking fees? Higher dump fees. Paying more to use your council pool. Higher consent charges. Life won’t be cheaper, it will be more expensive.
I’ve always known that this idea isn’t actually going to deliver us any benefits.
This cabinet paper and the people who actually know a thing or two about how councils work - Christchurch city council staff and councillors - are proof.
No matter how much you might think your local council needs to rein-in the spending, this idea of rates caps won’t make one bit of difference.
LISTEN ABOVE

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays.

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With two decades experience in communications based in Christchurch, John also has a deep understanding of and connections to the Christchurch and Canterbury commercial sector.

Newstalk ZB Canterbury Mornings 9am-12pm with John MacDonald on 100.1FM and iHeartRadio.

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays. It’s all about the conversation with John, as he gets right into the things that get our community talking. If it’s news you’re after, backing John is the combined power of the Newstalk ZB and New Zealand Herald news teams. Meaning when it comes to covering breaking news – you will not beat local radio. With two decades experience in communications based in Christchurch, John also has a deep understanding of and connections to the Christchurch and Canterbury commercial sector. Newstalk ZB Canterbury Mornings 9am-12pm with John MacDonald on 100.1FM and iHeartRadio.

Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays.

It’s all about the conversation with John, as he gets right into the things that get our community talking.

Canterbury Mornings with John MacDonald

John MacDonald: Rate caps won't make a difference

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/fc2e3137-6c4f-4bf8-bc01-b3d90005f11d/transcript