Greater Local Govt Role

Press, Volume CVIII, Issue 31843, 22 November 1968, Page 1

Greater Local Govt Role

Local government in New Zealand should be given more recognition by the central Government, as it was in Australia where the Minister in charge of Local Government was acknowledged as having one of the most important portfolios, the president of the New Zealand Municipal Association (Mr P. Tait) said yesterday when he met representatives of Canterbury municipalities. The Minister of Internal Affairs (Mr Seath), who was in change of local government, had too many other ‘varied responsbilities, Mr [Tait said. [ However, there had been ■ a much closer relationship [established between local government and central gov-

ernraent, and now there was a chance of seeing legislation affecting local government before it was introduced to Parliament. Welcoming the setting up of a joint committee to examine local body finance and alternatives to rates which he announced in Dunedin, Mr Tait said it was high time that people who enjoyed amenities made some contribution to them. In Australia, rates were deductible for income tax, whereas in New Zealand only businesses and farmers could claim them, Mr Tait said. This was something on which the association could make strong representations to the Government. , New Zealand was practically the only country in the world where rates could not be deducted for tax purposes. Local bodies would not receive any more money, but their ratepayers’ burden would be spread. Discussing recommendations of a New South Wales Royal Commission on revenue apart from rates, Mr

Tait said there was one that a citizens’ tax of not more than $2O a year should be paid, but there were great difficulties in enforcing this. An accommodation or tourist tax had been proposed, and this could apply in New Zealand, as it was almost universal and readily accepted in the United States, where the money went to promote tourism and publicity. A licence fee on business premises and clubs had been proposed in New South Wales, but in New Zealand the business community was already bearing its full shares of rates. New Zealand was ahead of New South Wales In having the Government make a grant in lieu of rates on most Government properties. One field in which local bodies should receive help as of right was library subsidies, Mr Tait said. These were accepted in Australia as a grant from the central Government, and there was a move for them to be increased. In New Zealand municipalities with a popula-

tion of more than 20,000 got nothing. In Australia all local body loans were guaranteed by the State or Federal Governments, he said. In New Zealand the Government guaranteed hospital board loans, and although these carried no more interest they were often preferred by investors ahead of other local body issues. Mr Tait said local government must attract the top men in New Zealand to its administrative staff and urged councils to release their staff for training courses. “Rates in New Zealand are not high compared with those in other countries,” he said. “They average about $6O a household—l2 bob a week —and it is worth that to pull the chain or turn on the tap. Most people pay more for their electricity than they do for all the other services provided by rates put together. There are rises in electricity charges without complaint, but there is an uproar when the rates go up.”