Adams Paul: Questions for Oral Answer — Questions to Ministers 
Adams Paul: Questions for Oral Answer — Questions to Ministers 
[Volume:616;Page:11831] 
3.  
PAUL ADAMS (United Future) 
 to the  
Minister of Local Government 
: Is the Government considering alternative sources of funding for local authorities besides property rating; if so what alternatives has it identified so far? 
Hon CHRIS CARTER (Minister of Local Government) 
: 
 At its December 2003 meeting the central government/local government forum agreed that a working party be established to review and assess the merits of any additional funding arrangements for local authorities that might be found necessary. The working party has begun its task and is due to report progress to the next meeting of the forum. It is expected that the working party will have completed its task in time for the December 2004 forum meeting. 
Paul Adams 
: Does the Minister agree with the comments of the Auckland Regional Council chair Gwen Bull this morning that rates based upon the value of a person’s property are archaic and that we have to find other ways of funding; if so why is it that in the year since the last rates revolt we have seen not one single useful proposal from the Minister to address the very real concerns of the long-suffering Auckland ratepayer? 
Hon CHRIS CARTER 
: The raising of revenue by territorial authorities is a complex issue which is why the Government has agreed to participate with local government in working through this issue. 
David Parker 
: Does the Local Government (Rating) Act provide greater flexibility for local authority rating? 
Hon CHRIS CARTER 
: Yes. The new Local Government (Rating) Act gives local authorities rating tools that are more flexible than was the case in the past. The new provisions for targeted rates enable local authorities to better match the users of a service with the means of rating for that service. 
Jim Peters 
: What has been the response of the Minister and his department to the persistent submissions by the Far North District Council and mayor regarding the GST exemption on the core property rate under the Local Government (Rating) Act? 
Hon CHRIS CARTER 
: The Government has no plans to remove GST from rates. 
Jeanette Fitzsimons 
: Is the Government considering levies on parking spaces to help fund transport infrastructure and waste-to-landfill levies to fund zero-waste initiatives to ensure that those who create expensive problems for local government also pay to help solve them? 
Hon CHRIS CARTER 
: Those two areas of transport and environment raised by the member are not areas I have responsibility for so I am not aware of what decisions have been made in respect of them. 
Paul Adams 
: What is the Minister’s reaction to the suggestion of a local rain tax mooted this morning by experts on National Radio to pay for stormwater upgrades; and suggestions having reached such a ridiculous point does he think it about time that the Government did something to shore up local government funding shortfalls? 
Hon CHRIS CARTER 
: The greatest cost for local government is infrastructure cost and no Government in the history of New Zealand has given more for the development of infrastructure in our territorial areas than this Government. 
Paul Adams 
: Why will the Government not consider removing GST—that tax on a tax—from local rates bills thus providing an instant saving of 11 percent to residential ratepayers in light of indications that Auckland’s ratepayers are to suffer another increase in rates this year to cover just the basic facilities? 
Hon CHRIS CARTER 
: The removal of GST on rates would not lead of course to a drop of 12.5 percent in people’s rates bills because local territorial authorities base their income on goods and services as they move through usage within the territorial areas. So if local authorities lost revenue from the removal of GST they would have to recoup it in other ways. 
Gordon Copeland 
: I raise a point of order Mr Speaker. My colleague’s question mentioned a figure of 11 percent whereas the Minister’s answer referred to a figure of 12.5 percent. We seek further clarification of that differential. 
Hon CHRIS CARTER 
: I was making the point that the removal of GST would not lead to a significant fall in rating bills because local authorities would have to recoup their lost revenue in other ways. The only way they can do that at present is through rates. 
Gerry Brownlee 
: I raise a point of order Mr Speaker. Surely you will not accept that as an answer. This House well knows that GST collected by a local authority is not revenue. 
Mr SPEAKER 
: I do not judge the quality of answer; I judge whether the question has been addressed. It was. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. The Minister said that if GST were lost at the collection point by local authorities then they would have to make up the difference. That is an absurd answer for a Minister to give as it is the Inland Revenue Department that collects GST. 
Mr SPEAKER 
: That might be the member’s opinion and it might be other members’ opinion but the answer addressed the question which of course can be alluded to by way of statement or comment. 
Ron Mark 
: I seek leave of the House to table the United Future - Labour heads of agreement which show quite clearly that United Future had no interest in that matter at the time of the coalition negotiations. 
Mr SPEAKER 
: Is there any objection? There is. 
Gerry Brownlee 
: I seek leave to ask an urgent question of the Minister of Finance. 
Mr SPEAKER 
: Leave is sought. Is there any objection? There is.