News

School Sewage Rates

Local Government New Zealand appeared before the Government Administration Committee yesterday, 26 June, to argue its case against changes to the LG Rating Act 2002 that would allow the Minister of Local Governemnt to set by regulation school sewage charges.

The Government has taken the opportunity of a Statutes Amendment Bill to re-open the debate over who pays for school sewage - a topic well canvassed inthe former Donnelly Bill and which led to provisions in the LG Rating Act which, while providing for the Minsiter to set regulations, ensured that no regulations could be made until the Rating Act had been in force for two years and a report to identify whether or not there is a problem had been prepared.

The Local Government New Zealand delegation, led by Wynne Raymond, Mayor of Timaru and National Council member argued strongly that the amendment was unnecessary as the LG Rating Act was not even in force therefore we were unable to say whether or not school rating was likely to be a problem. The existing framework which provided for the Act to operate for two years before an analysis is done was perfectly reasonable. The delegation also argued that the question being considered was a policy matter and not suitable for a Statutes Amendment Bill, and secondly that no attempt to consult local government over the measure was made. It was hard not to see this measure as little more than an attempt to shift the cost of schools from the national tax payer to the local ratepayer. The delegation further argued that if there were seen to be problems with the charging regimes of specific councils then the appropriate response should be Government to begin a dialogue with thsoe councils. The amendemnt was a blunt instrument that would result in unexpected and perverse results.

Mike Reid
Manager Governance

27 June 2003