Watts the Wait? Rate Caps must happen now

The Taxpayers' Union is celebrating today's announcement of a future rates cap as a win for ratepayers but says the Government risks neutering the policy by pushing it years down the road.

Taxpayers' Union spokesperson Tory Relf said:

"More than 30,000 Kiwis backed our call to Cap Rates Now, so today's commitment is a big step in the right direction. Cumulatively, over the last three years, the average rates hike is an incredible 34.52 percent. Over the same timeframe, inflation has been just 13.7 percent. Rates capping will finally force councils to focus on essentials and give households certainty."

"But Minister Watts is leaving the door wide open for councils to jack up rates before the cap arrives. Asking councils to 'be responsible' before the cap is legally enforceable will not work. It invites a final spree of increases as they scramble to lock in a higher baseline."

"Stretching this out to 2029 means National would need to win not just one, but potentially two elections before the cap actually applies. That gives the Opposition years to campaign against it, and gives lobby groups like LGNZ plenty of time, and ratepayers' money, to run interference."

"Our question to the Government is simple: why wait until 2029? Many councils are setting their Long Term Plans prior to June next year, so the cap should come into force within months, not years."