Homeowners hammered by relentless rates rises

new-zealand-national-party

Tue Mar 27 2007 12:00:00 GMT+1200 (New Zealand Standard Time)

Homeowners hammered by relentless rates rises

Tuesday, 27 March 2007, 12:40 am
Press Release: New Zealand National Party

John Carter MP
National Party Local Government Spokesman

27 March 2007

"Homeowners who've just taken a hit from the Reserve Bank should be prepared for another round of rates rises that far outstrip inflation," says National Party Local Government spokesman John Carter.

With annual inflation running at around 3%, three councils have unveiled draft rates rises today, 5.5% for the Waikato District Council, an average of 9.9% for the Queenstown District Council, and a proposed 13.4% hike for Northland Regional Council.

"Many of these councils are carrying the cost of central Government buck-passing over the past seven years. The Queenstown District Council goes as far as to say that 'additional obligations placed on local authorities by the Government through new Acts of Parliament' are a 'key cost'.

"Over the past seven years under Labour, rates have risen by a staggering 44.9%. Add the upcoming rates hikes to the rises in mortgage interest rates, and homeowners are increasingly carrying the cost for Labour's policy settings.

"And what's worse is that homeowners will have to tighten their belts even further as Labour prepares to spend up large in the lead-up to the next election. That'll help fuel further mortgage rises and suck more money out of struggling families' pockets."

Mr Carter says Labour's cavalier approach to legislation which leads to extra costs for ratepayers shows no sign of easing up.

"I'm deeply sceptical about whether the long awaited results from the rates review will spend too much time dwelling on that at all."

ENDS

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