Tuesday, July 04, 2006

Rates used to further extend welfare net by stealth

Hattip: NZ Herald
Hattip: Labour Party Mailer

The New Zealand Herald article today had an interesting quote from Mike Reid raised my ire over an issue that had already been sparked by a Labour Party communication we received mailed out to us this week (more on that in a moment....):
Local Government New Zealand spokesman Mike Reid questioned whether Mr Carter's list was truly random and said rates rises varied around the country.  The rates rebate scheme's new threshold meant rebates of up to $500 for people with incomes up to $20,000.  That was bigger than any of the rises, he said.

This shows the philosophy that is endemic throughout the Labour party - that they can just keep extending the welfare net upwards through society by increasing levies and taxes to the point where the general populace cannot sustain the payments, and must pay for them through levies and taxes from other people.  It needs to be recognized that it is not OK for rates and the like to be pushed upwards to levels at which those people still paying their rates must also start paying for everybody else's as well.  Especially when the rates levied in the first place are nothing to do with a user pays basis but are already a subsidization in and of themselves.

The Labour party mailer I received posted out to me earlier this week (yes - complete with parliamentary crest....) was already proudly proclaiming their increased rates rebates availability and that it would now be available to 350,000 households in comparison to the 4,500 households last year.  To me this is actually showing how incompetent the Labour Government in its governance of councils and their responsibilities has become.  Labour either need to endorse the method of using rates to fund local Government, or be honest (sic) and start funding these services directly from central taxation.

Which method would you prefer - or what assumption would you challenge?
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