Mayor Phil Goff wants to spend GST component of Auckland rates on city's infrastructure

July 16, 2018

The Auckland Mayor says Auckland Council should get be able to spend GST from rates on local infrastructure as they wish.

Auckland Mayor Phil Goff says he's asked the last two Finance Ministers for direct access to spend the GST component of Auckland rates in his city's continued scramble for revenue funds.

Speaking on TVNZ's Q+A program yesterday, Mr Goff bemoaned the "antiquated" mode of revenue gathering for local government councils around New Zealand, indicating he would like more direct access to GST funds.

"I don't think it's great that local government has to go cap in hand to central Government on a case by case basis for funding," Mr Goff said.

"We're elected at a local level. We're accountable at a local level and if you look at a lot of jurisdictions overseas, and I'm thinking about probably Australia, where the local infrastructure for example is created by the state government, rather than the federal government.

"The federal government returns some of the GST to state government to spend directly on the projects that are necessary."

Mr Goff said he has floated the idea of implementing the same system in New Zealand with National's Bill English, Steven Joyce and Labour's Grant Robertson.

It would allow Auckland Council to spend the 15 per cent GST component that is included on all Auckland rate payers' bill, on various infrastructure projects.

However, the Auckland Mayor revealed none of the Finance Ministers liked the idea.

"I've got to say that neither Finance Minister that I've talked to has been entirely enthusiastic about it and I understand why," Mr Goff.

"They're under a lot of pressure, they don't have money that they want to give away at the moment.

"They've got huge demands on their spending. But this wouldn't be in addition to everything else.

"This would mean local government could do some things directly itself without having to go each time cap in hand to central government to say 'please give us some money for this particular project'."

Corin Dann interviews Auckland Mayor Phil Goff about the real issues facing council’s and banning activists from using council venues.

The debate of revenue gathering for Auckland Council has come under scrutiny following the introduction of the 11.5 cent Auckland regional fuel tax, and the bed tax on accommodation businesses.

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