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MEDIA RELEASE
04 December 2009

New rating system for Auckland a major threat to ratepayers.

Statement from David Thornton

The move to a single rating system under the new Auckland Council poses a major threat to ratepayers.

The combination of a change to capital value rating, together with a new valuation role, across the more than 500,000 ratepayers, will involve potentially massive swings in the incidence of rates on individual ratepayers.

While such swings inevitably mean some ratepayers pay less, the real problem lies with those who have to pay more – in many cases much more.

When the Auckland Regional Council started direct rating in 2003 there was a huge outcry with over 120,000 ratepayers withholding all or part of their ARC rates, a march down Queen Street and a storm of protest to MPs. And many ARC members lost their seats at the following local elections.

Minister Rodney Hide proposes that the Auckland Council will be allowed to introduce the new system over a three year period – but this may not be enough to help those who will be most affected, the ‘asset rich – cash poor’ low and fixed income ratepayers – particularly superannuitants.

With such an upheaval ahead it is vital the new Auckland Council and its Local Boards have tight rein on any additional expenditure in the early years of the New Auckland.

ENDS

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