No more money

A timely reminder on this budget day for five local towns and districts around the Wairarapa electorate.

10% increases proposed for Waipawa ratepayers.
16% increases proposed for Waipukurau ratepayers.
9% increases proposed for Tararua ratepayers to be followed by similar increases for the next two years.
5.3% increases proposed for Masterton ratepayers, followed by 11.8%, 13.3% and 13.3%.
20.1% increases proposed for Southern Wairarapa ratepayers.

Nice one councils. Where will this extra dosh come from? You and me borrowing it, readers.

Patently evident that the local councils have not heeded the fact there is a global recession, blithely continuing spending up large.

Today's budget has been prepared against a backdrop of global and domestic conditions considered unthinkable - even by the most pessimistic forecasters - just one year ago. Just about every unlikely event has occurred and every worst case scenario has become reality.

We are now in our 6th quarter of recession.

Not so at the local councils with their focus on low quality spend. Just charge the working stiff more. Like Tararua District council which is about to increase its building consents by 100% plus. Criminal. Such charges should be fronted to the Commerce Commission.

$50 billion dollars will disappear from NZ's income. If our mayors continue to spend more than they collect, borrowing against the equity in your property is the only way they will raise the difference. Fancy taking on more household debt now to gold plate your footpaths?

Borrowing now and hoping that the next council gets it right is not an option.

Councils need to change the way they do things. Our elected reps need to focus on improving spend with no more money. That step change needs to be permanent. Eliminate low quality spend and poorly delivered services. Looked at the state of your local roads lately?

Whilst some mortgage holders have received gains from lower interest rates, it wasn't expected that councils would gouge those gains.

It is clear that this government values enterprise, rewards personal effort and encourages them to get ahead under their own steam. Our councils should support such an approach, not torpedo it.

HT 'From the House' John Hayes, Wairarapa MP, in the Dannevirke News May 28 2009 (not online).