Rates freeze needed

The Taxpayers Union announced:

The Taxpayers’ Union has launched a campaign aiming to force New Zealand’s mayors and regional council chairs to commit to a 12-month rates freeze in light of current economic challenges.

While the Government prioritises economic relief for struggling families and employers, most local councils are still planning significant rate hikes in the coming months. Some plan to hike rates up to nine or ten percent from 1 July.

In the letter to mayors and chairs, Taxpayers’ Union Executive Director Jordan Williams says, “The Government is currently prioritising economic relief for businesses and households facing economic calamity. But rate hikes at this time of economic turmoil will serve to exacerbate immediate financial stresses and undermine the Government’s relief strategy. Any economist will tell you that a recession is the most damaging time to hike taxes.”

Putting up taxes during a recession is callous. It makes the recession worse, and it hurts struggling families and businesses. Businesses facing massive revenue drops can’t afford a rates increase. Families who have had a member laid off, can’t afford a rates increase.

This is not a normal situation. Councils must realise they have to play their part. They can do what central Government is doing, and borrow against their balance sheets for 12 months, rather than make the recession longer and deeper.

You can sign the petition for a rates freeze here.