LOCAL RATES AND GST... TO BE OR NOT TO BE

Waimarino Bulletin, Volume 3, Issue 12, 13 August 1985, Page 1

LOCAL RATES AND GST... TO BE OR NOT TO BE

At the July meeting of the Raetihi Borough Council it was resolved that a letter be sent to the Minister of Finance, Roger Douglas, with a copy to our King Country MP, Jim Bolger, objecting strongly to a goods and services tax being applied to rates and urging the Government to reconsider this move — a move that will allow one form of tax to be based on and added to another.

Our Council has decided that it should pursue the case for 'zero rating status' for local Government (in other words no GST on rates thank you very much!) because of the amount of local concern being expressed and also because the president of the municipal association, Ross Jansen, has advised us that provision for the application of GST to rates may be included in a bill to be introduced into Parliament and referred to a select committee shortly. He intends appearing on behalf of all municipalities before the select committee to express our strong objection to this measure. Rate increases here in Raetihi normally run close to the current rate of inflation and although the optimists are predicting that inflation will fall in future it is becoming fairly obvious that there will not be any change in the level next year from the present high rate ( 1 7%) currently being experienced and it is my bet that once GST has been implemented there will more than likely be a higher rate again to contend with at least initially. This of course will do 'wonders' for the striking of the 1986-87 rates. Given that GST could add another 10% to 15% on top

of that 17% inflation rate, Raetihi ratepayers could be facing a rate increase around the 30% plus mark next year. This would mean of course that the average ratepayer will be having to find around another $ 1 50 per year — that figure of course being based on an average Raetihi rate demand of just under $500. Those paying above this average will be paying a greater increase. It is therefore in the interest of us all to object strongly to this move now so as all members of Parliament are made aware and fully appreciate our concern on this matter before the select committee considers submissions and reports back to Parliament. A letter from each ratepayer or household to the Ministers of Finance or Local Government, Parliament Buildings, Wellington (letters to Ministers of the Crown do not evert require stamps),x would probably prove to be the most effective form of protest rather than just signing a petition. The fact that some of you may feel that you are not able to write an effective enough letter to the Minister should not deter you from doing so. Never mind the fancy wording or the precise English: just write telling

him, in your own way, how you feel. As well grab hold of Jim Bolger, our MP next time he is in the area or if there are any other ideas some of you may have that you feel might be worthwhile pursuing. Please do not hesitate to contact either myself or the Raetihi Borough Council Chambers. I will ensure that the President of the Municipal Association receives all the relevant material available from this area prior to his appearing before the select committee on this matter e.g. newspaper clippings, copies of letters to the Editor and editorial articles. Whether or not any of this will make the slightest bit of difference to the final decision made by this Government will remain to be seen. However, if we take some positive action now before it happens rather than wait until it is a fait accompli then at least our objection will have been heard when it counts most rather than just squawking ineffeCtively when we receive our next year's rate demand.

G. S.

Workman

Mayor, Raetihi