New infrastructure and infrastructure maintenance will decline
With less money to spend, Councils will have little choice but to delay repairing some assets – these include roads, footpaths, buildings, swimming pools and so on. Where once timely intervention could prolong the lifespan of an asset, rate capping will see assets deteriorate to the point where it will have to be replaced entirely.
And all this will do is increase the infrastructure repair bill for the future. Far from saving ratepayers money, rate capping will only increase the asset renewal backlog incurring greater future costs.
Read what others have to say:
Rate capping is a poor solution
Rate Capping: Lessons from history