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Home / Bay of Plenty Times

Richard Moore: Greedy tax grab looming

By Richard Moore
Bay of Plenty Times·
28 Jul, 2015 05:00 AM4 mins to read

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Councils are considering a regional charge on tourists.

Councils are considering a regional charge on tourists.

Padlock your wallets, freeze your bank accounts, there is yet another spectre on the horizon that will try to relieve you of your hard-earned money.

Surprisingly, this beast thinks it can drag blood out of a stone. Unsurprisingly, it is associated with local councils.

The new danger to our savings comes out of the Local Government NZ conference, which was held recently in Rotorua.

The LGNZ is the national body representing the country's 78 local authorities - you know the mobs who gather rates and then spend it in a way that usually annoys half the population of a city, really annoys another 40 per cent and makes only about one out of 10 people happy.

At the conference the LGNZ released a 10-point plan it has come up with to give councils greater "flexibility" with their funding.

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Putting it another way, they want to have extra sources of income to fill their coffers.

And here are some of the other ideas the dedicated servants of the public have come up with.

They want to end rating exemptions for certain categories of land, introduce local road-user charges, levies and fuel taxes, and try to get their fingers in the pie by taking a slice of local investment and mineral royalties.

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Possibly the most interesting will be a bid to tax tourists.

Now that is a double-edged sword.

Yes, a small regional charge of a couple of extra dollars a night on your motel bill will raise money painlessly for councils, but there is a chance it could put some people off visiting their areas.

In Paris we were warned in advance that there was a bed tax of about 2 a night and so, when I was asked for it upon arrival, it didn't come as a nasty surprise.

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But when people are weighing up where in the world they will go to and spend their money it will be a consideration.

For example, it is expensive flying all the way to New Zealand when compared with intra-Europe journeys or travelling to North America.

Hotels and motels are already expensive here, by world standards, and guests also get hit by that sneaky (and costly) extra - paying exorbitant amounts for Wi-Fi or internet connections.

Every extra dollar adds up.

Local councils need to remember that tourism is the nation's future lifeblood - being far more sustainable than dairy - and the industry needs to be treated with care and intelligence.

They also should keep in mind that rather than finding new ways to grab money off people - residents and visitors alike - they should really be looking to make their operations more efficient.

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I read the Letters to the Editor in most of the North Island's regional papers most days and it is a real window into how people around the country are thinking.

In every area residents are concerned at growing council bureaucracies' spending and a seeming inability for elected members and council staffs to recognise the fact that it isn't their money they are spending, but that of the ratepayers.

Perhaps the LGNZ would be better coming up with a 10-point plan to reduce spending and cutting their cloths to fit.

I RECKON John Key and Co have been electronically bugging me.

For some years I have been saying that New Zealand needs to stop migrants arriving and heading to live in Auckland and now the Government has arrived at the same conclusion.

They will get extra migration-qualification points if they move to the country's regions.

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It is about time, but such action needs to go hand-in-hand with one basic requirement and that is jobs.

Regional New Zealand is dying as government departments and major industries become more centralised "to save money".

Jobs are hard to come by and the future looks bleak for towns outside of commuting distance to Auckland, Christchurch or Wellington.

If this Government is serious about boosting the nation's regions then it needs a sensible plan to make them sustainable, not just places to plonk unsuspecting new arrivals.

-richard@richardmoore.com

Richard Moore is an award-winning Western Bay journalist and photographer.

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