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Govt likely to reject Auckland tax rise

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Mon, 13 Feb 2012 8:47a.m.

The Govt isn't likely to allow Auckland Council to raise taxes to pay for infrastructure

The Govt isn't likely to allow Auckland Council to raise taxes to pay for infrastructure

The Government isn't likely to allow Auckland City Council to raise taxes to pay for infrastructure projects, Prime Minister John Key has indicated.

Raising GST, higher petrol prices and road tolls are options the council is putting up to raise $10 billion to $15 billion for an inner city rail loop and other projects.

It would need Government permission to raise taxes and Mr Key clearly isn't keen on that.

"Any tax sucks money out of the economy, we have to be cautious with that and consider whether it's warranted," he said on Monday.

"The Government is already investing huge amounts in Auckland's infrastructure."

Mr Key says the discussion document released by Mayor Len Brown will cause Aucklanders to think about what they really want and what they're prepared to pay.

"Good on Auckland for having the discussion, people need to think this through," he said.

"Whenever you put another cost on households you have to think about how they're going to pay for it - and I'm thinking very carefully through this one."

But Auckland Mayor Len Brown says doing nothing could mean leaving a legacy of transport chaos to our children.

“It is important that we as a region have open and frank conversation about what options we are going to pursue to fund the much-needed solutions.”

This week Auckland Council’s Strategy and Finance Committee will discuss these funding options.

A Council discussion document highlights that an already congested Auckland roading system will need to cope with a population increase of more than 50 percent in 30 years to more than 2.2 million people.

The document will be available on the Auckland Council website, at council service centres and libraries so Aucklanders can give feedback.

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Comments

14 Feb 2012 05:51p.m.

Hugh wrote:

Auckland public transport is abysmal, but that problem could easily be fixed by running a few more buses. The city is spread out over such a wide area that rail is never going to help more than a small percentage of commuters. There's certainly no justification for spending billions on trains and rail infrastructure and committing us to hefty ongoing running costs and track and signal maintenance fees. Far better to scrap the lot, rip up the existing train lines and convert them into roads, and use all the money saved to put on a decent bus service. While we're at it, there's clearly far too many busybodies in the council coming up with harebrained schemes to try and justify their continued employment. Time for a major clear out I think!

13 Feb 2012 10:28p.m.

Chris wrote:

Its thanks to visionaries like Mr Key that Auckland still has a 3rd world transport network. Time and time again the issue of public transport has been raised, but successive councils and governments have instead chosen to ignore the problem and hope it goes away (blah blah, people won't use trains, blah blah, cars are the answer, blah). Now we've reached the point where something has to give, and guess what? The ostriches don't want to pay their fair share!

That said, any transport upgrade for the city of Auckland should be paid for by the people of Auckland. The way I see it, you guys have 3 options: 1) Do nothing, and be prepared to spend the rest of your miserable lives in gridlock; 2) Stop complaining, cough up and accept that such costs are all part of living in the big city; 3) Pack up and move to one of the many other cities or towns throughout NZ. I mean, its not as if anyone is forcing you to stay there. Maybe if less people flocked to the city of sails, then it wouldn't be such a congested hellhole.

Brown campaigned on public transport, so good on him for sticking to his guns. Its a nice change to see a politician staying true to their word.

13 Feb 2012 03:57p.m.

pondering wrote:

@Jer: actually they will be putting trains out the back of Howick. But not through some of the the other more heavily populated areas where it is needed the most. Those areas will not be getting the improvements to public parks and pools either that your area and the more affluent areas have already. There is a large block of Auckland that have little recreational activities and limited means of reaching industrial areas and education facilities. Public transport is a vital priority for these vast areas.

13 Feb 2012 02:30p.m.

Jer wrote:

Auckland has infinite transport issues, yes, but in the harsh economic times we're currently facing, I don't think Brown is going find much support from the general public. Lets face it, we're experiencing these traffic woes because of the poor planning and lack of foresight of our council members. Public transportation is horrifically expensive, and the experience leaves nothing to be desired. Why would anyone in their right minds take the bus to the city when it costs the same or cheaper to drive and pay for parking, in half the time? People can't even afford food at the moment, why should they have to pay for services they can neither afford, nor use? Why punish people who are already hurting with higher tax, and businesses with tolls into the city? I live in Howick, will the trains come here? No. Why should I have to pay for them? I think you need to put away your train set for another day, Len.

13 Feb 2012 02:13p.m.

brian wrote:

I agree with "central Govt" for a change. Auckland petty bureaucrats need to get their own house in order, and as like their own "problem" the stevedores, reduce their own by at least 50%. Remove all the malingerers ASAP, even if it means resignations from their top bench.

13 Feb 2012 10:38a.m.

Mickey wrote:

The government is already investing in Auckland's infrastructure but in all the wrong ways. Public transport in Auckland is painfully bad. We're willing to pay for it ourselves just let us fix this disasterous infrastructure and as soon as possible before it gets too expensive to do.

13 Feb 2012 10:34a.m.

moral Outrage wrote:

no no no noooooo..... don't let them tax out lattes