Adams Paul: Questions for Oral Answer — Questions to Ministers 
Adams Paul: Questions for Oral Answer — Questions to Ministers 
[Volume:610;Page:7215] 
3.  
PAUL ADAMS (United Future) 
 to the  
Minister of Local Government 
: Does the Government have any plans to address the pressure on local government funding sources as illustrated by the Auckland rates crisis? 
Hon CHRIS CARTER (Minister of Local Government) 
: 
 Local authorities set their own rates and they are accountable for those to their own communities. The Government recently enacted the Local Government (Rating) Act which ensures transparency in rating decisions and at the same time gives local authorities greater flexibility in how they fund their services. 
Paul Adams 
: In order to address the pressure on local government funding sources will the Government consider increasing the percentage of funding allocated by Transfund for local roads from the current maximum of 47 percent to a maximum of 80 percent thereby alleviating one of the biggest drains on local government funds; if not why not? 
Hon CHRIS CARTER 
: This Government has a proud record of funding infrastructure which is of course the primary cost to local authorities. I could mention for instance the 20 percent increase in roading since 1999. 
Hon Richard Prebble 
: I raise a point of order Mr Speaker. How on earth could that answer be said to be even addressing the question? The member was asked a specific question on whether the Government would agree to increasing the percentage funding by Transfund and he stood up and said that the Government has a proud record on infrastructure. That may or may not be true and he could be proud of it but it has nothing to do with the question he was being asked. 
Mr SPEAKER 
: It is not directly the Minister’s responsibility but I think the Minister could give a more direct answer to the question that was asked. 
Hon CHRIS CARTER 
: My responsibility as Minister of Local Government is to be an advocate for local territorial authorities. In fact I therefore was in a position to comment on how much this Government has done for infrastructure support. It is not my responsibility to discuss or comment on transport issues. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. He says he is in a position to comment on how much support this Government is giving. Then he leaves it at that. So we are still no wiser as to the primary question and the secondary one. Secondly when he began his answer none of us could hear it. 
Mr SPEAKER 
: The only valid point the member makes—because the Minister did address the question—was the business about hearing it. I had some difficulty hearing it. I would ask the Minister to repeat it. 
Hon CHRIS CARTER 
: I would be very proud to answer that question again and I will use my best classroom voice. As Minister of Local Government it is my responsibility and indeed my privilege to act as an advocate for local government. I have done that on the transport issue. I am commenting that this Government has given a 20 percent increase since 1999 in transport funding. It is not my responsibility or indeed my ability to comment on individual transport decisions. 
Gerry Brownlee 
: I raise a point of order Mr Speaker. Surely the supplementary question call should go from side to side. That was a Government question. 
Mr SPEAKER 
: The Labour Party as the largest party gets the first supplementary question. 
David Parker 
: What other steps has the Government taken to help local authorities fund expensive infrastructure costs? 
Hon CHRIS CARTER 
: As I said earlier infrastructure is a major cost to local authorities. We have significantly increased funding for roading. We have introduced— 
Gerry Brownlee 
: I raise a point of order Mr Speaker. How can that question be in order? The primary question dealt with sources of funding causing pressure for local government. Local government these days with the power of general competence ranges into all sorts of activities. For the Government to decide to narrow this down simply to infrastructure and allow the Minister some sort of a free hit on the goodies that the Government is pushing out into Auckland is totally unacceptable. 
Mr SPEAKER 
: Yes I think the member is right. That question is disallowed. 
Gerry Brownlee 
: Will the Minister accept that rate rises across the country are largely due to the new Local Government Act which has seen extraordinary extra costs loaded into councils in order that they might meet their statutory obligations; and what does he say to all those residents in Auckland who are feeling that this is excessive unacceptable and is as Mr Adams described a rate crisis in Auckland? 
Hon CHRIS CARTER 
: The new local government legislation increases ratepayers’ opportunity to participate in council decision-making on rating policies. 
Hon Ken Shirley 
: Does the Minister consider it fair that Auckland Regional Council ratepayers are facing on average property tax increases of over 30 percent with some facing several-100-percent increases to pay for services that they have never used and never intend to use; if he does think it is fair could he explain why and if he does not think it is fair could he tell us what he will do about it? 
Mr SPEAKER 
: There are three questions there. The Minister can comment on two of them. 
Hon CHRIS CARTER 
: I repeat my answer to the initial question. Local authorities set their own rates and they are accountable for them. 
Hon Richard Prebble 
: I raise a point of order Mr Speaker. I sympathise with this junior Minister who has clearly run out of notes and is starting again but that is not how question time works. If the member had wanted to ask the first question he would have asked it. The Minister was asked a completely different question. 
Mr SPEAKER 
: The Minister was asked to comment about Auckland Regional Council increases in rates. I ask the Minister to continue his answer. 
Hon CHRIS CARTER 
: Ultimately the decision by Auckland Regional Council councillors will be judged by their constituents at next year’s local body election. 
Hon Ken Shirley 
: I raise a point of order Mr Speaker. My question was very precise: does the Minister consider it fair that those property taxes are going up on average over 30 percent? I want to hear the Minister’s view. He just told us that he has responsibility for local government. I want to hear his view. Does he consider it fair? 
Mr SPEAKER 
: The Minister is not forced to give an opinion like that. 
Rt Hon Winston Peters 
: I raise a point of order Mr Speaker. If the Minister is not forced to give an opinion like that why did you allow the question? The question was about whether he thinks it is fair and what the Minister said was that ultimately the decision as to its fairness would be made by the local ratepayers. Frankly he is not an expert on electoral law democracy or anything else by the sound of it. Surely he has been asked to address the question which you thought was proper when it was put to him. 
Mr SPEAKER 
: I thought that the original question the primary question was proper. I may have been a little more generous on the supplementary question. 
Paul Adams 
: In order to address the pressure on local government funding sources will the Government commit to providing local authorities with a GST rebate on the amount they collect from rates which is nothing but a tax on a tax anyway and which currently costs ratepayers an extra $200 million annually? 
Hon CHRIS CARTER 
: Not at this time. 
Paul Adams 
: Noting the Minister’s answers to my previous question I ask this: has he seen any reports that at the time of the passage of the GST legislation it was the Government’s intention to remove the GST component from local rates bills and will he advocate for this with the Minister of Revenue? 
Gerry Brownlee 
: I raise a point of order Mr Speaker. This is another one of those questions that take up heaps of time. It is way wide of the wicket. It was something about funding pressures on local government. The Minister has made it clear that the Government does not care about that—it is not going to help local councils. So why did we get this question? 
Mr SPEAKER 
: I think the member is being a little unreasonable. I try to allow reasonably wide questioning. Technically the member is absolutely right but I was going to allow the Minister to comment. But the member has properly raised a point of order. The question is out of order. 
Hon Richard Prebble 
: I raise a point of order Mr Speaker. I actually do recall the matter and I am quite happy with leave to give the answer. 
Mr SPEAKER 
: So could I but neither of us can. 
Hon Peter Dunne 
: I raise a point of order Mr Speaker. I also recall the answer to the question because I was there as well. But I submit to you that the primary question relates to the current rates crisis in Auckland. The supplementary question addresses ways in which that might be alleviated. Surely it is in order for the member to ask the Minister what his response is to particular funding solutions that might alleviate that crisis. 
Mr SPEAKER 
: I have thought about this. I think the member is perfectly correct. I will ask Mr Paul Adams to ask the question again. 
Rt Hon Winston Peters 
: I seek leave to table the voting record which shows that both Mr Dunne and Mr Prebble voted for rates to be GST taxed. 
Mr SPEAKER 
: Leave is sought to table that. Is there any objection? There is. 
Paul Adams 
: Noting the Minister’s answer to my previous question I ask this question: has he seen any reports that at the time of the passage of the GST legislation it was the Government’s intention to remove the GST component from local rates bills; and will he advocate for this with the Minister of Revenue? 
Hon CHRIS CARTER 
: I personally have not seen any of those reports. As far as being an advocate for this particular issue I point out that Government—the Prime Minister and other Ministers including myself and the Minister of Revenue—meets with mayors every 6 months. If this issue is raised I am sure we will discuss it. 
Larry Baldock 
: Noting the current funding pressures facing local government is the Minister aware that the Inland Revenue Department is looking at requiring councils to pay GST even on rates the council has remitted such as on multiple-owned unused Maori land as per its rates remission policy mandated by the Local Government (Rating) Act 2002; if so does he agree that this would seem to be an unfair additional burden on ratepayers? 
Hon CHRIS CARTER 
: I have not been aware of that information but I am happy to discuss it with the member further.