0800 543 543Thursday, 4th July, 2019
Commenting on the Productivity Commission draft local government funding and financing report, Auckland Business Chamber head Michael Barnett noted that the Commission favoured the ‘benefit principle” - i.e., those who benefit from a service should pay for its costs.
The Commission also noted that issues of fairness and equity arise from the differential rating, a long-standing concern of the Chamber.
Other notable points in the report included the suggestion that Special Purpose Vehicles (SPVs) are a financing option to help councils nearing their debt levels to invest in development in a way involves debt sitting off a council’s balance sheet.
Value capture and user charging would help growth ‘pay for itself’ was among other positive suggestions for a change in how local government to better handle funding growth infrastructure.
The Chamber will make a detailed response to the Commission.
For more information contact Michael Barnett, mobile: 0275 631 150.
Michael Barnett, Chief Executive, Auckland Business Chamber.
