MEDIA RELEASE 7th May 2013

[statement from David Thornton]

Auckland Council misleading public by claiming average rates increase is 2.9%.

More than one third of residential ratepayers face increases of more than 5%

Mayor Len Brown can claim some credit for a lower rates increase than last year but he is wrong to claim that the average increase is 2.9%.

Most ratepayers will face increases of up to 10% and a very small number will actually get a decrease of up to 5%.

The council’s 2.9% refers to the increase in the amount of rates the council aims to collect in total from all ratepayers across the region.

It has no relation to the actual increase individual ratepayers will pay.

The facts are;

· 19% of ratepayers will enjoy a decrease between 1%-5%

· 7% of ratepayers will face an increase of 2.9% or less [the so-called average]

· An overwhelming 74% will have increases ranging from 4% - 10% [this range includes 34% who will pay more than 5%]

The Mayor should be straight up with ratepayers and say “Rates will rise by up to 10% for most ratepayers, with about 19% of ratepayers getting a modest decrease of up to 5%” – because that is the true picture of the changes in rates from 1st July.

It is not just Mayor Len Brown in Auckland who talks about an ‘average’ increase. All councils do it.

And ratepayers around the country get irate when the first rate bill comes in and they find that they are paying way above this phoney average.

Ratepayers have a right to expect clear, concise and accurate information from their local council – talking about an ‘average’ rates increase is definitely none of those.

ends

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