Local authorities are low-risk borrowers. Rarely do they default
on their loan obligations because they have captive ratepayers to squeeze when
things turn sour. Ratepayers must pay whatever is demanded of them - there is
no right of objection. Their only recourse is to speak out against excessive
rate increases and vote for candidates who commit to capping rate increases.
We believe the size of a council's rate increase is a better
reflection of its money management skills. On that score, our local councils
perform very poorly (Kaipara is the exception).