David Seymour is making noises about pushing ahead with some sharing with local councils of the GST on housing new-builds, all of which is now pocketed by the Crown.
This proposal is part of the ACT Party support agreement with its Coalition partners. “Act has long advocated for GST-sharing as an enduring solution for infrastructure funding for councils,” says Seymour. He recently told local government officials he would raise this in the 2026 Budget process. Good luck with that!
So, maybe it’s no more than wishful thinking for our HB councils for now, but it is indeed tantalising … and reasonable.
We asked Hastings District Council and Napier City Council just how valuable the GST on new-builds might be for each council.
For HDC the answer, for the last fiscal year — about $20 million, given $152 million in new-builds, GST included. For NCC, given $97 million in new builds, GST would be about $15 million.
Even a half share of that wouldn’t be chump change! And as HDC pointed out, the last year wasn’t exactly boom times for housing new-builds.
Local Government NZ says sharing 50% of the GST from this activity would generate $1.3 billion for NZ’s city and district councils.
And what might they spend it on?
We recently asked HB’s five councils how much of their budgets were devoted to the five ‘core’ areas specified in the Government’s upcoming local council ‘reform’ legislation. Keep in mind HBRC is the ‘odd duck’ here, with a significantly different set of responsibilities than the territorial authorities.
These allocations reflect priorities funded by recent rate increases well above the consumer inflation rate. So, what’s the non-core fluff? We’re waiting for our rates-capping election candidates to identify.
We know where the other 30% goes right, NCC and HBRC – into your pockets or the pockets of your mates. Anyone else think the billboards for Hine and Kirsten, the smiling assassin’s, need a facelift? Happy to oblige. Vote for change this October, 2025.
Apart from Napier CC and HBRC there’s not a lot of room left for other spending after core items are covered. Which sort of makes claims of such a lot of “vanity” spending (in the other three councils at least) somewhat ridiculous. Perhaps those accusing HDC, CHB and WDC could put their hands up and advise where the waste is occurring when such a high percentage is being spent on the basics
I read somewhere this week, that $1000 per Ratepayer per year, goes to paying the Interest only of our Rates bill, I well know who I won’t be voting for this Election, my Father around 60 years ago, told me that it is ever so easy to spend other peoples money!! mother ohhh my have we ever seen that in the last few years!!
Do we really assume that all the spending on the 5 core areas is wise and necessary, giving ratepayers maximum bang for their buck. Somehow, commentators seem to assume that councils don’t waste money in those 5 core areas ….that would be the day.
See the figures for NCC amended from 60 something % to 96.1%. What absolute bullshit this Council continues to feed their public. We all know though, Kirsten and team. Your ratepayers all know. They will let you know their thoughts come October. Three months of this shambles to go :)