Round ‘will increase rates’

Press, 10 February 1986, Page 1

Round ‘will increase rates’

PA Wellington A rise in local body rates would be the “inevitable” result of the flow-through of recent State wage increases, said the president of the Local Government Employers’ Association, Mr Rex Kirton. “Recent State wage increases will have a disastrous effect on local body costs,” Mr Kirton said yesterday. Most salaried staff in local authorities worked under awards and agree-

ments which were related to State salary rates, Mr Kirton said. A considerable part of the increase granted by the Government to State servants would flow on to local body staff. “Local authorities will do their best to absorb as much of the increase as possible within existing budgets, but for many authorities the cost of the new salaries will be too great. Steep increases in rates appear to be inevitable to maintain existing

services,” Mr Kirton said.

“When the increase in wage costs from the present wage round and special State adjustment is added to the general rise in costs from inflation, high interest, and GST, the effect on local body finances and the rate payer is disastrous.” He said that local government had recently formed the employers’ association to strengthen and co-ordinate its role in wage-fixing.