National fails in bid for rates select committee inquiry

National failed in its bid to get a select committee inquiry into local council rates today.

National and the Green Party this week discussed draft terms of reference for the Local Government and Environment committee to hold an inquiry.

But yesterday Local Government Minister Mark Burton announced an independent inquiry would be held.

He made it clear that it was likely to consider any concerns the Greens wanted to have addressed.

There are nine MPs on the committee, four each from National and Labour, plus Green MP Metiria Turei.

National Party local government spokesman John Carter said with Ms Turei abstaining on today's vote the select committee inquiry was not going ahead.

However, the Greens have not ruled it out should they fail to get what they want out of the independent inquiry or decide that it was going to take too long.

Mr Carter doubted the Government's inquiry would be powerful enough or have enough input.

"It would be an absolute travesty if the homeowners and businesses that are facing crippling rates increases aren't asked to contribute."

He said the inquiry should consider the impact of central government changes on local government.

"For instance it's costing district councils like Wanganui about $50,000 every time Labour changes its policy.

"Wellington City Council has identified millions of dollars that have been loaded on to ratepayers by this Labour Government.

"Unless the inquiry takes a good hard look at that buck-passing then it will have failed."

A spokesman for Mr Burton said the terms of reference would be drawn up within three weeks and then a broader time frame set for how long it could take.

Negotiations with parties about the inquiry were ongoing, he said.

"The talks have been ongoing with parties for a while, the indications have been positive."

The Greens want there to be a tight time frame and for the inquiry to include local government funding of public transport, and rates remission issues regarding Maori land.

NZ First were pleased with the inquiry and were confident it would "have the scope and breadth" to deal with all the issues.

ACT leader Rodney Hide's bill to cap rates increases was defeated last night.

- NZPA