Equitable and fair quake levy vs National debt

Christchurch City Council's proposed earthquake levy is a good way to avoid future debt and the concept should be adopted by the Government to pay its share of the city's rebuild, the Green Party says.

Green Party Christchurch earthquake recovery spokesperson Kennedy Graham said if a quake levy could be paid by those who can least afford it — Christchurch ratepayers — then it would surely also make sense for the rest of New Zealand to also pay a small temporary levy for their contribution to the rebuild.

"However, the Government's plan at the moment is to put its $5.5 billion share of the rebuild cost on the nation's credit card and hope for the best."

While the council had proposed a 1.76% quake levy for Christchurch residents, which would raise $81 million over five years, the Government had decided to borrow rather than implement its own levy.

Dr Graham said there might be an election coming up but this wasn't the time for the Government to be averse to revenue raising.

Independent polling, commissioned by the Green Party, showed New Zealanders were willing and happy to stand behind Cantabrians by paying a temporary quake levy rather than have the Government go further into debt to pay its share of the rebuild.

The poll, conducted by UMR Research in March, showed total support for the temporary levy proposal at 57%. New Zealanders also preferred a levy (40%) to big Government cuts (29%) and to more borrowing (22%).

"Not only would a national levy help the people of Christchurch get back on their feet," Dr Graham said, "but it would give them the strength of knowing their fellow New Zealanders stand behind them. And that's not something to take lightly when continuing aftershocks have robbed so many of their optimism and security.

"We know we're in for a financial challenge but if we share it in an equitable way, we can rebuild Christchurch into a vibrant eco-city — something for future generations to be proud of."

The Green Party has proposed a small temporary earthquake levy which would raise $5.4 billion over five years.

People earning between $48,000 and $70,000 a year would pay up to an additional one per cent income tax, and those earning over $70,000 would pay up to an additional two per cent.

The Christchurch City Council's earthquake levy was expected to come into effect on Friday.