MEDIA RELEASE 22 Jan 2015

[from David Thornton]

COMMENTS ON AUCKLAND 10-YEAR PLAN

Residential Ratepayers to be slogged with $100 million extra on rates while business rates go down.

More than 140 key transport infrastructure projects canned to make way for early start on Central Rail Link [CRL]

The proposed 10-year Long Term Plan [LTP] for Auckland residents and ratepayers includes two significant issues which will affect all its citizens - Council’s rates policy and the controversial CRL.

The Council is to continue its policy of reducing the percentage of general rates paid by businesses each year for the next 10 years and recovering that lost revenue by increasing residential rates.

Over the 10-year period of the LTP this add more than $100 million to domestic ratepayers bills, on top of the expected annual increases of 4.5% - or higher. Average rate increases are likely to be 9% or higher during this 10-year period.

The Council makes no objective case for this switch in the balance of liability for rates. It appears to be based on a subjective view that

Projects cancelled include busways, park and ride facilities, station upgrades, bus interchanges, changes to allow more double-deck buses, and a whole raft of roading changes designed to improve bus transport movements.

The Mayor’s major project, the CRL, will absorb the bulk of transport capital spending over the next 10 years and as a result more than 140 key public transport projects are being cancelled.

The Mayor wants to start the CRL project in the next financial year with expenditure of $400 million in the year, and the main construction starting in 2018.

The Government has recently confirmed that it will not make its contribution of half the cost until 2020.

If the Mayor gets his way and starts later this year there is a real danger that work will proceed to a level were new capital is needed and, without Government support, that means more borrowing and more interest cost falling on ratepayers.

As a result of the Auditor General’s recent intervention the Council have had to come clean and admit that, in addition to cancelling transport projects there will also be a reduction in road and footpath maintenance which will lead to a ‘deferred maintenance obligation’ of $1.25 bn at the end of the 10-year period.

More local taxes are also likely to be introduced such as a targeted transport rate, a rubbish charge based on weight, and changes to recycling charges.

The outlook is quite gloomy for ratepayers, and even cyclists will be dismayed to a see an 82% cut the capital budget for Walking and Cycling.

It is difficult to see how this 10-year budget will help Auckland to become the world’s most liveable city.

ends

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