On Mon, 19 Feb 2024 23:46:12 GMT, Tony <
lizan...@orcon.net.nz>
wrote:
The mayor is not happy - he believes he was elected to get the
government out of Auckland - I guess the Government did not get the
message . . .
>>
>>They are also stopping councils from around the country from keeping
>>rates low - there are huge increases coming to cover the costs of work
>>on water - and by not borrowing themselves and on-lending they are
>>making the costs of borrowing even higher than necessary.
>That is a lie - the cost of fixing water infrastructure will be paid for by New
>Zealanders, not the fairies or the folk from Newfoundland. Whether it is
>ratepayers or through taxes is not particularly important. The cost will be the
>cost - and we need to do it. The issue, putting aside your idiotic comments, is
>whether we do it democratically or whether we do it the Lbour way by hiding
>undemocratic representation in the guise of water improvements.
I agree that the costs of fixing water infrastructure will be paid for
by New Zealanders. The government have indicated that the Councils
involved in each water entity will need to borrow and that the
government will not lend them the money - I have not heard whether
they will guarantee loans from banks. That will cost more than the
government borrowing and on-lending to the water entities. Up to about
40 to 50 years ago it was possible to buy local authority as well as
government bonds - the local authorities paid an additional margin of
around 0.25% to account for the bonds being less tradeable and less
secure. In recent years when local authorities have needed to borrow
capital they have borrowed from the government - it saves the country
money. It appears that the government does not want to see the
borrowing and nearly equivalent asset of the debt from local
authorities in its accounts.