Hide's rates bill labelled 'dopey' by NZ First

Brian Donnelly

Rodney Hide's bill to cap rate rises is heading for defeat at its first vote next week unless New Zealand First changes its stance.

The Act leader's bill - which would cap rate rises at the level of inflation plus 2 per cent in any one year - needs the support of New Zealand First's seven MPs to make it to a select committee.

But after a caucus meeting yesterday at which the bill was discussed, NZ First MP Brian Donnelly repeated that his party thought the bill was "dopey".

He said NZ First was sticking to its calls for an independent commission of inquiry into local government funding instead, which could look at wider issues not covered by Mr Hide's bill.

"We'd like to see a much more wide-ranging inquiry into it - we're working on seeing whether we can achieve that end," Mr Donnelly said.

Some MPs are concerned that the bill does not address the impact of increased property valuations on rates, particularly for people on fixed incomes.

Still, NZ First is coming under intense pressure to vote for Mr Hide's bill as ratepayer outrage spreads after a round of hefty rises.

United Future, the Maori Party and National have all pledged their support to Mr Hide for the first reading of his bill, which will take place next Wednesday.

The Greens oppose a cap on rate increases, which they believe must be negotiated between local government and its constituents.

It is understood NZ First has approached Labour about holding a commission of inquiry and is waiting to hear back from the Beehive.