Getting real on Nelson’s rates rises

Media release: 30 October 2012

Nelson City Council’s average rate rise over the 2002 – 2010 period was 8 percent, not 13 percent as Nelson MP Nick Smith has been publicly stating.

Nelson Mayor Aldo Miccio has been keen to get the record straight after misinformation has been published in the media by Dr Smith to promote his legislative agenda.

“I was pleased to see Dr Smith refer to the actual Statistics NZ data because that data was supplied by Nelson City Council and it clearly shows the issue we are trying to fix. In 2006 water charges were reclassified from a user charge to a rate, and this shows in the data we reported to Statistics NZ.

“This has significantly skewed the compound average Dr Smith is using. He is comparing apples to oranges. The real average rates rise is well below what he has stated, 8 percent for Nelson City from 2002 through 2010.”

In each of the years 2002 to 2005, the Statistics NZ figures are rates alone, and do not include water charges. From 2006, Council’s data reflects water charges along with rates. Council’s Chief Financial Officer Nikki Harrison has been in touch with Statistics NZ to correct the figures presented on their website.

An adjustment in the rates rise is also needed to reflect growth in the rating base. An increased population shares a smaller percentage of the rates as the city grows in size.

“Dr Smith continues to use inaccurate figures even though both Councils provided him with the correct ones earlier this year. I’m quite confident in our annual figures of rates increases and ask Dr Smith to be more accurate when speaking to Nelson residents.”

Mayor Miccio says that it should also be noted that in the individual years when rates increases were high, the Council at the time was focused on improving core infrastructure, such as the Tantragee Water Treatment Plant, which now provides top quality water to Nelson residents.

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