Business supports changes to the Local Government Act to get better decision making by local authorities.

BusinessNZ Chief Executive Phil O’Reilly says there’s widespread support for amendments to the Local Government Act aimed at more disciplined spending, focus on core activities, transparency and accountability.

“Business pays about half the country’s rates bill and we’d be happy to see better stewardship of those financial resources,” Mr O’Reilly said.

But he said there would be disappointment that the Local Government Act Amendment Bill failed to address the problem of business and commercial differentials.

“Many councils are still imposing rating differentials – higher rates for businesses than for domestic ratepayers – and we would like to see this practice outlawed on fairness grounds.

“We think the amended law should also make more provision for user-pays. For example water services are still largely funded from rates and so lack the price signals that help prevent waste. Appropriate user-pays policies would help councils achieve efficiencies and reduce rates.”

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