Exorbitant rates rise

The budget this afternoon has just given councils a licence to implement their wildest grandiose dreams. Mr Cullen has announced that councils will be left to their own devices charge "something around" 10c/litre on fuel for "transport" projects.

I suggest that this Clayton's tax will bring every hare-brained scheme, even if slightly connected to transport, to the surface. We will be charged accordingly, at whatever rate (10c is the starter), to meet needs of the local rapacious tax collector council. No doubt the 10c will have the usual obscene double taxation icing with GST on top!

Now for some non-NCEA math - assuming my car goes through 50 litres/week, which is a tankfull, that means it will cost an extra $5 plus GST for the new regional tax of 10c/litre. That will be 5 x 52 = $260 extra (plus GST) per year.

Now the average rates bill is say $1500 plus GST for a half decent property in a larger city, so now I am effectively paying $1760 plus GST in rates tax. In my book that will be a minimum increase in my rates of 17.5%, which will be added to the already hideous rates increases currently being implemented!

There will be no limit to this funding method, as this budget forces opens the floodgates, with no cap on the top end. Councils will continually look upon this regional tax as a cash cow and a few cents will added often to cover their new schemes.

One of two councils will be the first to enact bylaws - either Auckland or Waitakere, both of them being staunch Labour strongholds.

I put my money on the eco-city being first out of the blocks, always wanting to socially engineer Westies some more.

The only guarantee I can see is that councils and consultants will see most of this tax before one cent gets spent on a road!