Councils lose money now if late

Colin Espiner writes:

Regional councils charging late fees for rates payments are about to get some of their own medicine.

Environment Minister Nick Smith has outlined details of “financial incentives” for councils who fail to process resource consent applications within the statutory 20 days.

Under the changes, which the Government wants in place by July, councils that are up to a week late in processing a resource consent must provide a discount of 25 per cent of their fee. A further 5 per cent discount will be added for every week the consent is delayed, up to a maximum of 80 per cent.

An excellent initiative. Councils, like most organisations, respond to incentives. The threat of reduced income should lead to greater efforts to process consents within the legal time period.

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