Should a chunk of tourism GST return to district?

Tourists will spend about $162 million in Matamata-Piako this year and about 15 per cent will automatically be funnelled into the Government’s coffers.

But Mayor Jan Barnes is backing a plan to have some of that GST-take returned to the district.

Local Government New Zealand wanted to make sure a chunk of the GST Government takes from tourism, ends up back with the people who worked hard to generate the income.

It was a topic discussed at the Local Government New Zealand AGM.

The remit stated that council says local government’s reliance on property rates has seriously constrained investment in key local infrastructure.

The proposal would be one step towards adopting a strategic and co-ordinated approach to investment in regional tourism growth.

Barnes said councils had to provide infrastructure for tourists as well, so it made sense for councils to have a portion of the GST spent in their districts.

‘‘Why should central government rip that off us?’’

Barnes said the council needed to account for public toilets, car parking, rubbish collection, demands generated by tourists.

‘‘Freedom camping is [also] an issue so we are saying please, could we have a portion on what is spent in our district?

‘‘I don’t think that’s unreasonable for a ratepayer to ask that.’’

Barnes said there will always be a portion for the ratepayer to fund, but there should be a tourism component too.

Councils could apply to the Tourism Infrastructure Fund for projects, but Matamata-Piako doesn’t qualify as it is in good shape financially.

‘‘We are applying to DoC to see if we can use some land to put a

‘‘Why should central government rip that off us?’’

carpark on at our Wairere Falls,’’ Barnes said.

She said she has a meeting coming up with the Deputy Prime Minister Paula Bennett to discuss tourism, in relation to Wairere Falls.

Barnes said a contractor is working on a plan for parking at the falls, owners.

‘‘When it comes to improving our district infrastructure, should the burden rest on the ratepayer, or can our district benefit from the goods and service tax?’’

It was a question raised at the AGM. with iwi and land

Ministry of Innovation, Business and Employment provided data which forecast the tourist spend to be about $162m in Matamata-Piako.

Neighbours South Waikato’s tourism spend was an estimated $82m and Thames-Corromandal, $351m.

MARK TAYLOR FAIRFAX NZ Matamata-Piako mayor Jan Barnes has backed a plan by LGNZ to keep a chunk of GST to support tourism infrastructure in the regions it’s spent.