Local government’s funds and powers

Press, 21 November 1981, Page 14

Local government’s funds and powers

General election,, Z issues: LOCAL GOVERNMENT

By

KAREN MANGNALL

A cynic once adapted Parkinson’s law to read: local government spending expands to equal the funds available.

Christchurch’s ratepayers obviously feel their council’s spending; has expanded quite enough and many candidates for the General Election say the most common grumble is "What’s your Government going to do about my rates, then?”

Meanwhile, the normally vociferous local government campaign for more responsibilities and finance from the central government has risen to fresh heights.

Local governments wants a percentage of the annual tax take, called revenue snaring; more responsibilities delegated from the central government; fewer statutory restrictions; and a reverse of the steady decline in reading funds. Local government is not the

big spender it is accused of being. Its spending as a proportion of the Gross Domestic Product over the last decade has remained stable at garound 2 per cent annually.

From 1970 to 1978, the central government’s share of the Gross National Product rose from 27 to 37 per cent while local governments share dropped marginally from 3.7 to 3.4 per cent. ’ . Caught in the middle by the ratepayers and local government leaders are the political parties: National’s candidate for Yaldhurst, Margaret Murray, says her party is commuted to continuing .the present legislation on revenue sharing and regional government schemes. “I prefer the tax reduction going to the homeowner rather than the central government handing over the money to local government,” says Mrs

Murray, herself a, Waimairi County Councillor. “I don't think that regional government should ever have total control over tax-money. Any tax responsibility that the local authorities get will be by putting the money through regionally administered government schemes such as the Labour Department work schemes.” she savs.

“I can’t see central government, whatever the party, handing totally over financial control to any’regional government. unless it is for a specific function. Some of our regions would have to be incredibly large to nave their own financial control, which could leave some areas equally incredibly disadvantaged because of lighter population,” she says. National argues that 2 per cent revenue sharing would cut over-all government aid to local government by about 4 per cent on last year’s figures. The party also sticks by its refusal to allow the Local Government Commission to force amalgamations, regional or united councils where they aren't wanted.

Ad hoc authorities will also remain outside the commissions reach. The present legislation promotes co-operation between local authorities, Mrs Murray says. The Canterbury United Council is getting better at co-operation but still needs

to do a lot of' maturing, she adds.

National doesn’t want to give regional government too much power and responsibility. Regional government is too separated from the people and is just another form of bureaucracy, says Mrs Murray. Its best hope is to co-operate on better services, sucn as refuse schemes, power supply under one umbrella, regional planning, and rationalising drainage and catchment boards. Regional government should also co-ordinate urban and rural interest. “I agree it’s doing it the long way round,” says Mrs Murray.

Labour supports revenue sharing and will work out the details with local bodies once elected, says the shadow minister for local government. David Caygill

Labour will also increase the level of rates rebate so that those on an income equivalent to the married rate of national Superannuation will get a full rebate, he says. The rebate will be graduated for those on a slightly higher income and the rebate will keep pace with inflation.

Central government has an “outdated attitude that local government is a creature of statute.” Labour will thoroughly review the Local Government Act so that local bodies can set their own

charges for services and take on more trading enterprises. “The real control over local government should come not from central government, but from the electors. If the electors don’t want their council to do anything they'll say so through the ballot box,” he says.

“We will devolve as many responsibilities onto local government as possible,” he adds. But all new functions will be adequately funded. “I would take as my example West Germany where something around one third of the functions and total government expenditure is central governments and the other two thirds are local government functions and expenditure.” In the long term, local government could take over most of the so-called welfare administration — health, education, social welfare, and it could also do more on housing, especially rental housing.” The Canterbury United Council could eventually take over the Canterbury Education Board, could have mucn more say in regional planning, and could run regional schemes instead of Labour Department employment programmes or Education Department bursary assessments, which are administered nationally now. Labour promises to look at central government paying local body fees and rates on

Crown land. Reading funds will be restored to a realistic level over the next six years. Subsidies and grants for water and sewerage will continue, but losses on rail services would not be transferred from the taxpaver to the ratepayer. Social Credit promises to look at various ways of spreading rates more evenly, such as a Citizen’s Tax and revenue sharing. Socred’s candidate for Yaldhurst, Norman Davey, says that councils have to push up' rates to pay off huge debts at high interest. Loans for Capital works such as a sewerage scheme are paid back two or three times by ratepayers before the loan itself is paid off by the council, he says.

Social Credit will give local bodies interest-free loans with an administration charge of about 1 per cent, says Mr Davey. These loans will be available for approved projects and as funds are available. Valuation for rating assessment will be phased out under Social Credit. Rural rating will be based on land quality and urban rates will be dependant upon services provided by the local council.

AU rates will be paid on Crown lands and central government subsidies for soil conservation, river control, irrigation, and pest destruction will continue.