Tag: Len Brown

More Taxes? No Thanks

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Mayor Outlines Possible New Taxes

 

I saw this morning that the Mayor is effectively looking at a Poll Tax to either replace or supplement the current rating system (property tax) Council uses to raise revenue.

From Stuff:

Brown’s bold tax plan

Making all Aucklanders pay a council income tax may help elderly people in affluent areas who can’t afford their rates, mayor Len Brown says.

The current system is “inherently unfair” on people living on fixed incomes and paying high rates because of the value of their properties in areas like Devonport-Takapuna, Brown says.

Introducing an income-related tax for local council services that everyone pays is an option, he says.

Only property owners pay rates but the council is spending money on infrastructure and services for everyone, Brown says.

He believes the only way to mitigate the rates burden as property prices rise is to rethink how local government is funded.

Brown won’t express a view on what alternative might work saying he is “quite open minded”.

Options could include funding through income tax, GST, user pays charges, or bed taxes from hotel.

—-ends—-

 

Last time a poll tax got mentioned it cost Maggie Thatcher her Prime Ministership in 1990 to John Major. While we do need to think how Local Government is funded in New Zealand such as all GST collected from rates is given straight back to the Council rather than Central Government keeping it (Australia has a GST sharing arrangement between the Federal Government and the State Governments) I believe priority one is getting our expenses in line first.

Debt moving from 175% to 275% to me is unacceptable by all means. If we need to go that high then it seems it might be time to take the ruler and red pen over expenditure. I was given an alternative to how the budget should be set for Council by an elected representative once. The idea was quite intriguing in using a big massive white board at the back of the chamber where the Councillors meet (so where the food sits) with revenue down one side and expenditure (OPEX and CAPEX) down the other. Everyone can see it, everyone can comment on it, but the sole key requirement was you did the income first then the expenditure to match the income. Not the current method of do the expenditure first then find the income to cover it. With the board present it would serve as a constant reminder if you want something can the revenue cover it – if not what needs to “go” first. Pretty much this is what households and businesses do – or rather should do (our savings and debt is nothing to crow about)

 

So I am rather cool on the Mayor’s announcement on new funding mechanisms when our current budgets are disjointed as they are.

 

Just a quick note on another Orsman piece this morning I noticed he was going on about the City debt lifting by $74 million currently. A reminder that $60 million of that is the Colin Maiden Park purchase from the University of Auckland to ensure Auckland continues to have green space as it grows. So not as alarming as it was portrayed this morning as that $60m will continue to pay dividends for generations to come.

 

Main Council to Review CCOs

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Council Controlled Organisations to be reviewed

 

As Mayor Len Brown said in the elections last year, the Council Controlled Organisations (the CCO’s) were to be reviewed by the main Council. The CCO’s include (but not limited to):

  • Auckland Transport
  • Watercare
  • Auckland Council Investment Limited
  • Auckland Council Property Limited
  • Waterfront Auckland
  • ATEED

From Auckland Council on the review:

Council to review super-city organisations

24/02/2014

Auckland councillors will be asked to approve the draft terms of reference and timeline for a wide-ranging review of Council-Controlled Organisations (CCOs) at the next Governing Body meeting on 27 February, says Mayor Len Brown. The draft terms of reference can be found here (item 12, page 9).

Len Brown said: “Our CCOs deliver a huge range of services for Aucklanders, from water management, to major events, through to the big improvements we’re making in public transport. We need to ensure that as ratepayer owned and funded organisations, they are as lean and efficient as possible, with no waste and no duplication of effort.”

A key election pledge from Len Brown, the CCO review will aim to ensure Aucklanders are getting value for money from the seven council controlled organisations set up during amalgamation, and that they are fully accountable to ratepayers and elected representatives.

Deputy Mayor Penny Hulse, Chair of the CCO Governance and Monitoring Committee said:

“Having had three years to work with the CCOs, we are at an ideal point to assess how well CCOs are performing on behalf of our communities, and to look at potential changes where they are needed across council. The review will assess what worked well in the first term and what we could do better going forward.
 
“It is very important that while the review is going on we continue to work with our CCOs to deliver for Auckland.”

Councillors, local board members, CCOs and the Independent Maori Statutory Board have all been given an opportunity to provide feedback on the review’s draft terms of reference. These groups have also contributed to the development of two CCO current state assessment reports that councillors will receive ahead of the Governing Body meeting.

The seven CCOs are Auckland Tourism Events Economic Development (ATEED), Auckland Transport (AT), Watercare, Auckland Council Investments Limited (ACIL), Auckland Council Property Limited (ACPL), Waterfront Auckland, and Regional Facilities Auckland (RFA).

—ends—

http://www.aucklandcouncil.govt.nz/EN/newseventsculture/OurAuckland/mediareleases/Pages/CouncilToReviewSuper-CityOrganisations.aspx

 

The Governing Body Agenda which outlines the Terms of Reference for the CCO Review (and the Governing Body’s submission to the Unitary Plan)

 

Another post will be drawn up on the Council’s Unitary Plan Submission

 

Auckland Economic Performance Improving #1

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Auckland Council “Investments” Performing Well

 

The Mayor delivered a speech this morning to the Greater East Tamaki Business Association on Auckland’s Economy improving and set to boom. I will be getting a post up on that speech later. In the mean time you might have seen in the media this morning Port of Auckland, and Precinct Properties posting their results.

From Auckland Council on those results:

Waterfront businesses leading the way in Auckland’s economic transformation 

A boost in profits for two key Auckland companies shows the economic potential that the central city and waterfront can offer Auckland, say Mayor Len Brown and Councillor Penny Webster chair of the Finance and Performance Committee. The pair welcomed the Ports of Auckland announcement today that its half-yearly net profit after tax is up 70 per cent. It comes the day after Precinct Properties announced a 67 per cent lift for the same period.  Len Brown said: “These results reinforce the opportunities we are seeing for transformative growth in Auckland’s economy. Ports of Auckland has taken great strides to increase its productivity and output over the past year, and as a result ratepayers will benefit from an interim dividend of $20.94m.

 

“Precinct Properties is a great example of the private sector keen to work with the council in the transformation of the city – bringing significant new investments and an enthusiasm to align their developments with the CRL.” 

Penny Webster said: “I’m very pleased with the Ports result on the back of the Auckland International Airport dividend. The interim dividend is nearly double last year’s, with steadily increasing freight volumes as POA has begun to see the benefits of its restructuring. ” 

Both welcomed Precinct Properties’ discussions with Waterfront Auckland to be potentially involved in Wynyard Central, a key element of the regeneration of Auckland’s downtown waterfront.

—–ends—-

 

That Auckland still has a way to go before its economic performance is where it should be.

 

Weekend Transport Open Mic

· 2 Comments ·

Leave Your Comments

 

This weekend as we know Auckland is hosting a series of events (NRL 9’s, The Rapture Concert last night, and the Lantern Festival) which is causing pressure on our transport system (private and public).

I am hearing both positive and negative comments from yesterday and no doubt today. Just to put it out there by 3pm yesterday Britomart Station had “processed” 17,000 people through the Gate-Line that were heading OUTBOUND. The numbers do not include inbound or Line Transfers (Eastern Line to Western Line as an example). That is record-breaking numbers – even breaking the Rugby World Cup opening night (a night I tend to forget).

 

That said I am opening this post for your comments and feedback from the weekend events on transport. Whether on the road, waiting for a bus, or on the train this weekend leave your comments below. Please remember The Rules when posting. Also if you are a first time commenter your comments are held in moderation until I approve or reject them. Once approved you are free to comment on the blog.

 

So I leave the mic to you. Auckland Council and Auckland Transport do watch the blog so no doubt they will see your comments. Again play the ball not the man please in your comments. I am off to hit the South Western Motorway to avoid Southern Motorway traffic so wish me luck there.

 

Over to you – the reader.