No New Taxes doesn't mean no new solutions

“Wayne Brown needs to get on board with No New Taxes and work constructively on a solution for Auckland, rather than insisting the only answer is another tax,” says ACT leader David Seymour.

“New Zealanders do not want and cannot afford new taxes, that’s why the bed tax is now ruled out not only by ACT, but lately by National, too.

“There are many important reasons to rule out a bed tax. One is that it will not only be paid by foreign tourists, the majority of bed nights in New Zealand accommodation are actually paid for by New Zealanders travelling within their own country.

“Another good reason is that taxes have a terrible habit of growing. As political cycles come and go, the one constant is politicians being hungry for our money, and every extra avenue available to them becomes a channel for taking it. That’s why the ACT Party’s first rule of new taxes is: never introduce a new tax.

“Last month, ACT released its Local Tourism Dividend policy. This policy would transfer $1 to a council for every bed night stayed in its territory. I note that, at that time, our Mayor was open-minded and constructive. He should remain open-minded about this policy, because it may be the best way to solve a very real problem for the organisation he leads, Auckland Council.

“Tourism puts pressure on local councils, but tourists pay their taxes to central government. These taxes are mainly paid in GST, and the International Visitor Levy. Tourism operators estimate they pay $5 billion in GST.

“The ACT Party’s Local Tourism Dividend would transfer some of this money to councils to support them facing the pressures created by tourism. At $1 per night, Auckland would receive $7 million, the exact amount the city has previously claimed it needed to fill its gap.

“If our mayor doesn’t believe that is enough money, he could argue for a larger amount per bednight. We are open to that conversation, but it has to be a constructive conversation between New Zealanders. We have enough problems in this country, without closing ourselves off to constructive solutions for political purposes.”