Before Goff sets off on raiding other people’s tins he should get his own house in order

Phil Goff, ever the socialist, has seen a pile of money and has decided he wants it.

Auckland Mayor Phil Goff wants to get his hands on the $239 million of GST paid on Super City rates each year.

The Government collects 15 per cent in GST – goods and services tax – on all goods and services, including on the rates paid by property owners to councils around the country.

Goff made his pitch for the cash on TVNZ’s Q + A show today.

He told the Herald, “One of the real problems when [the Government] created the Super City was they created a city that covers 36 per cent of the country’s population but didn’t give it an adequate revenue basis to meet the infrastructure and cost demands Auckland City is facing.”

That needed to be fixed because without more revenue, the council couldn’t borrow more money needed for transport, water, wastewater and other infrastructure to cope with 50,000 extra residents a year.

Goff said the Auckland Super City’s role and population size made it comparable to a state government in Australia.

He said the Australian states received a proportion of the GST charged by the Australian federal government and also raised some of their own revenue from stamp duty and payroll tax.

Goff had raised with Local Government NZ the idea of councils being given the GST paid on their rates and there was “widespread interest”, although pursuing the idea had not been adopted as policy.

He acknowledged, however, that getting the Government to agree to the idea would be difficult.

“It will require incredible persuasion for Government to agree to that because they would be forgoing revenue that would come directly to local government.”

How does get stuffed sound Phil?

When your own staff are getting massive increases in salaries the problem lies a lot closer to home than suggesting you raid government coffers instead of fixing the screw ups in your own organisation.

A proper manager with a mandate for axe swinging could make millions in savings in just a few weeks. I suggest Goff finds an axeman.


-NZ Herald