Release the Data

Do Government Actually Help?

Table of Contents

The Claim: 

  • It is often claimed that if Governments were to not exist, countries would fall into chaos. But what kind of success is New Zealand’s Government achieving and is their existence overall a net positive one? 

The Question: 

  • What do POLITICIANS and Local Government Bosses get from being politicians and Chief Executives, and how does that compare to what the people (the public) they’re supposed to be serving get in return?

Politician Incomes vs the public, and Wealth Inequality: 

  1. In the year 2025, a member of parliament takes home a base annual salary of $173,000 per year, an accommodation allowance of up to $31,000 plus a further expenditure allowance of $18,600 NZD.
    1. In the year 2000, a member of parliament in New Zealand took home a base income of $85,000 per year plus a further expenditure allowance of $7,000 NZD.
    2. For the year 2026, politician base income is set to increase to $181,000 and allowance up to $19,300.
    3. The income of the rest of New Zealand has no future promises at all.
  2. In the year 2024, the poorest 50% of New Zealanders gathered less than $24,000, an amount less than what is required to meet the costs of living for a single person in 2024, an amount estimated to cost around $37,500 (with the cost of rent included). Meanwhile, members of parliament with their base pay only, took home nearly 5 times the amount of money required to meet the Cost of Living in New Zealand.
  3. With inflation adjusted, the poorest 50% of New Zealanders have seen no improvement to their wealth from 2000 through 2025.
  4. The poorest 50% of New Zealanders now own less than 2% of the country’s total wealth.
  5. A $100 trip to the supermarket in the year 2000, when adjusted for inflation, would cost about $195 in the year 2025.

Local Government Bosses versus Increasing Rates

  • Average Remuneration:

    The Public Service Commission reported an average annual remuneration of $496,000 for chief executives in 2023/24. 

     
  • Remuneration is Set by Councils:

    The Local Government Act stipulates that local authorities are responsible for setting their own remuneration for chief executives. 

     
  • Examples of Local Government Chief Executive Salaries:
     
    • Auckland Council: Phil Wilson, the current CEO, was paid $648,900 in 2022/2023. 
       
    • Otago Regional Council: Dr Pim Borren earned $595,924 in 2022/2023. 
       
    • Hawke’s Bay Regional Council: Bill Bayfield received $584,000 in 2022/2023. 
       
    • Wellington City Council: Matt Prosser is being paid $550,000. 
       
    • Christchurch City Council: Dawn Baxendale earned $543,943 in 2022/2023. 
       
     

RATES INCREASES:

Over the last ten years, New Zealand local government rates have seen an average annual increase, with some years seeing significant increases. In 2023, the average rates rise was 9.8%, while the average annual increase between 2002 and 2022 was 5.7% per year. A 1News report stated that New Zealand homeowners are facing an average rates rise of 15%

Factors Cited for Influencing Rates Increases:
 
  • Increased Costs:

    Councils face rising costs for essential services like infrastructure maintenance, waste management, and water supply. 

     
  • Inflation:

    Rising inflation impacts the cost of goods and services used by councils, leading to increased spending. 

     
  • Labour Costs:

    Local government labour costs have increased significantly, outpacing inflation in some cases. 

     
  • Interest Payments:

    Councils have been increasing their borrowing, leading to higher interest payments. 

     
  • Demand for Services:

    Growing populations and increased tourism demand for new and improved services, which require funding. 

     
Impact on Ratepayers:
 
  • Increased Rates Bills: The higher rates have led to increased bills for ratepayers. 
     
  • Affordability Concerns: Some ratepayers, especially those on fixed incomes, have struggled to keep up with the increasing costs. 
     
  • Uneven Distribution: Some councils have faced higher rates increases than others, depending on their financial situation and service demands. 
     
Examples of Specific Rates Increases:
 
  • South Wairarapa has seen a dramatic increase in rates, with some ratepayers paying double what they did in 2015. 
     
  • Wellington City Council has proposed an average rates increase of 16.9% for 2024/25, plus an additional sludge levy. 
     
  • Auckland households face an average 6.8% rise in rates and water charges for 2024/25. 

What Local Councils Actually Provide

Local councils in NZ are the elected bodies (regional, territorial, and unitary) responsible for a wide range of essential services:

  • Infrastructure & public utilities: roads (excluding state highways), footpaths, bridges, stormwater, sewerage, freshwater supply, and waste collection/recycling 

  • Community facilities: parks, libraries, swimming pools, community centres, sports fields, and cultural venues.

  • Regulatory & planning functions: building consents, zoning, bylaws (for nuisances, dogs, liquor), environmental monitoring, and civil defence .

  • Environmental and transport oversight (regional councils): flood control, water/air quality, pest control, harbour safety, and public transport planning.

  • Emergency management: preparation and response coordination for floods, storms, earthquakes, etc., often working with Civil Defence and NZTA .

  • Engagement with Māori: ensuring Treaty-based consultation and co-governance in decision-making affecting whenua (land) and wai (water) 

Councils collectively manage over $120 billion in community assets, employ around 30,000 staff, and have an annual spending power of about $11.7 billion. All loans must taken by local governments must be processed through the LGFA 

Questions:

  • If ratepayers are losing the ability to cover living costs because of Local Government operating costs, is it wise for Local Government to spend on average, between 8-10 times the Average New Zealand Salary on the chief executives who run these councils?
  • How is misspending mitigated and overseen by Local Government? Do they provide forensic audits of how money is spent?
  • Have Local Governments signed a contract with the LGFA Local Government Funding Agency that makes ratepayer property collateral for any debts that become unsustainable?

Health: 

  1. The leading causes of death in New Zealand are cancer, cardiovascular disease, diabetes and kidney disease, and cerebrovascular disease.
  2. Approximately 61% of New Zealanders experience at least 1 chronic health condition, either personally or through one household family member.
  3. One in 3 adults in New Zealand is Obese
    1. Obesity rates are higher in lower income households (46%) versus higher income households(26%) therefore if you are among the poorest 50% of New Zealanders your chances of being obese are higher.
  4. New Zealand permits food additives that are banned in most other countries. due to their negative health consequences.
    1. These food additives are believed to be causers of hyperactivity, allergies and cancers. 
  5. Healthy food is more expensive in New Zealand than other countries, while unhealthy and highly processed food is cheap by comparison.

QUESTION: With over half of the country’s financial security decreasing in 25 years irrespective of the political party in power, is it unreasonable for the people of New Zealand to move in another direction?

Wealth & Inequality

1 / 2

What percentage of total wealth does the poorest 50% of New Zealanders have?

2 / 2

In the year 2025, a New Zealand politician would take home a base salary of how much?

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The average score is 75%

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