Forum calls for spending restraint by councils

Local authority statistics released by Statistics NZ today show why it is important for councils to spend responsibly, says the Local Government Forum.



The Forum represents business-related groups seeking efficient, fair local government, including Business NZ, the NZ Retailers’ Association, Federated Farmers, NZ Chambers of Commerce, Electricity Networks Association, and the NZ Business Roundtable.



Forum member Phil O’Reilly said on average local body expenditure had gone up by more than 9% for each of the last four years, with total operating expenditure rising from $4 billion in 2003 to $5.7 billion in 2007 – a 42% increase.



“This is a concern for business ratepayers in particular since this relatively small group pays around half of the total rates paid.



“The increase in council spending has been particularly marked since the 2002 legislation which expanded council powers.



“There is a great need for councils to focus on their core activities and restrain their spending,” Mr O’Reilly said.



“Excessive rates are a real burden for local businesses. The Forum would like to see debate around this important issue for next month’s local body elections.”