Local Government New Zealand is warning a proposed rate cap on councils will increase debt costs and place additional burdens on ratepayers.

This comes after S&P Global Ratings released its downgrade of the New Zealand local Government institutional framework score last week - lowering the credit ratings of 18 councils and three council-controlled organisations.

LGNZ President Sam Broughton says capping rates would stop local councils from properly investing in their communities.

"New Zealand's got billions of dollars of infrastructure deficit at the moment because we've kept rates artificially low over generations."

LISTEN ABOVE

Local Government New Zealand is warning a proposed rate cap on councils will increase debt costs and place additional burdens on ratepayers.
This comes after S&amp;P Global Ratings released its downgrade of the New Zealand local Government institutional framework score last week - lowering the credit ratings of 18 councils and three council-controlled organisations.
LGNZ President Sam Broughton says capping rates would stop local councils from properly investing in their communities.
"New Zealand's got billions of dollars of infrastructure deficit at the moment because we've kept rates artificially low over generations."
LISTEN ABOVE

With a straight down the middle approach, Heather du Plessis-Allan Drive on Newstalk ZB delivers the very latest news and views to New Zealanders as they wrap up their day.

Heather du Plessis-Allan Drive

Sam Broughton: Local Government New Zealand President voices disapproval with proposed rates cap

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/bb3af11b-c19c-48db-9bde-b2aa005ff430/transcript