Transport Levy increase proposal – Councillors look to punish business and encourage residents to vote for them.

Councillors have put up a proposal within their 2016/17 annual plan to increase the annual transport levy business is paying from $183 per year to more than $3000 for some – a proposal that clearly demonstrates their lack of knowledge of the contribution business makes to the city. The fact is that infrastructure is as important to business as it is to residents needing goods and services, roads for connecting people to work and play and for general connectedness of communities.

They are seeking to change from a system based on a uniform charge to one based on the value of a businesses’ property – and that has nothing to do with transport.

It’s a proposal that business need to be aware of and object to says Chamber CEO Michael Barnett. It perpetuates the argument some Councillors have suggesting business should pay significantly higher rates because they are businesses – an argument that has been refuted in the past by economists and academia.

“As word gets around about what Council has in mind, messages have begun pouring in to the Chamber from manufacturing, retail, transport and associated sectors all suggesting this needs to be opposed.

The interim transport levy was developed last year to tide Auckland over while a more permanent arrangement for funding Auckland’s transport was worked out jointly with central government. This work is underway and is scheduled to be completed this year.

A $114 levy was set for residential properties and $183 for business properties. Council justified the difference on a view that businesses place more demand on transport services than other properties.Something the Chamber refutes

The Chamber rejected this view, noting that 90% of traffic compromises private vehicles of residential property owners. If there had to be a levy it should be the same for every ratepayer.

Mr Barnett noted that Council has other proposals all of which impose a heavier burden of cost on business rather than Auckland residents.

“I suggest the case for change to the levy is not evidence based and pushing this proposal at this time will only add to the discontent with Council’s performance. Councillors should reject both proposals and stay with the current arrangements,” concluded Mr Barnett.

ENDS

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