Copeland Gordon: Questions for Oral Answer — Questions to Ministers 
Copeland Gordon: Questions for Oral Answer — Questions to Ministers 
[Volume:610;Page:7356] 
12.  
GORDON COPELAND (United Future) 
 to the  
Minister of Finance 
: Does he stand by his claim that the Auckland Regional Council would be “wise” to review the formula used to calculate rates; if so why? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 I did not comment on the formula. I suggested that the Auckland Regional Council might have been wise to consider phasing in the changes more slowly if that were possible. 
Gordon Copeland 
: Does the Minister support the view expressed by his colleague Jim Anderton at yesterday’s local government conference that the nature of the Auckland Regional Council rates rise was fully justified; if so how does he reconcile that with his own view? 
Hon Dr MICHAEL CULLEN 
: My understanding is that this represents to some extent a catch-up related in large part to public transport. However overlaid with that are issues of shifts from land value to capital value rating and shifts out a responsibility being levied by the local territorial authorities which means a move away from relatively large business differentials to much larger differentials something I would have thought that most parties in the House would support as a general move. 
Luamanuvao Winnie Laban 
: Is the Government planning any moves to ease the burden of rates on lower income and elderly ratepayers? 
Hon Dr MICHAEL CULLEN 
: Yes. In the context of next year’s Budget we are considering raising the threshold for rates relief in the Local Government Act. It has not been raised for more 20 years. 
Dr Don Brash 
: Is the Minister concerned to hear that local body rates are now rising so rapidly—no doubt in part because of the costs imposed by his Government’s Local Government Act—that the Governor of the Reserve Bank felt he had to warn local authorities that this rapid increase in rates posed inflationary risks and could require monetary policy to be tighter than would otherwise be the case? 
Hon Dr MICHAEL CULLEN 
: I am not surprised at those comments. Governors of Reserve Banks around the world tend to unburden themselves in very similar fashion. 
Deborah Coddington 
: Why did the Minister tell Paul Holmes yesterday on radio that: “The North Shore has had a 9:1 load against business on the rates whereas the Auckland Regional Council doesn’t” and does he stand by his statement as being a truthful one? 
Hon Dr MICHAEL CULLEN 
: It was certainly truthful but it was incorrect. I have since been better informed and I understand that the differential is more in the region of 2 to 3:1 but I would still argue that very few local authorities should apply a differential of that size on the business sector. 
Gordon Copeland 
: Does the Minister agree with Christchurch Mayor Garry Moore who said in reference to the Auckland Regional Council rates increases that Aucklanders were just whingeing about nothing when other regions are already forced to subsidise Auckland’s transport woes and would not inter-regional relations be better served by returning more of the fuel excise tax to the regions where it is raised? 
Hon Dr MICHAEL CULLEN 
: I am sure that if we returned more of the fuel excise tax local authorities would find even more to argue about in terms of how that was delivered between them. 
Gordon Copeland 
: Can the Minister confirm that when GST was introduced the Labour caucus was divided over whether it should apply to rates because it is a tax on a tax and will he revisit that issue in the interests of alleviating the position of ratepayers? 
Hon Dr MICHAEL CULLEN 
: Indeed I can confirm that the motion passed by one vote. The then senior whip summoned the leader down to participate in the vote to make sure that it was passed. However we all learn from experience and the then senior whip now supports the retention of GST on rates. 
Gordon Copeland 
: I raise a point of order Mr Speaker. The second part of my question asked whether the Minister would revisit that issue in the interests of alleviating rates. I do not believe he addressed that part of the question. 
Hon Dr MICHAEL CULLEN 
: I was the then senior whip who did the summoning. 
Ron Mark 
: I seek of the House to table the coalition agreement between the Labour Government and United Future that shows quite clearly that this issue was never discussed in coalition talks. 
Mr SPEAKER 
: Leave is sought to table that agreement. Is there any objection? There is objection.