Chamber Will Fight Any Variation

30 March 2007

Chamber Will Fight Any Variation to Rating Differential Phase Down

We are sure that it is a coincidence that the Wellington City Council has announced a significant variation to the agreed phase down to the business rating differential on the day that the Wellington Regional Chamber of Commerce is moving office and had its communications down.

While the Chamber clearly welcomes any reduction in the rating differential it reminds Wellington City Council that it has been unable to prove that the Wellington business community receives 4.2 times the benefit from rates that the non-business community receives. Without being able to prove this benefit, the Council is acting in a manner inconsistent with relevant legislation.

There is a long history to this issue. The Wellington business community has decided to take Council at its word and in return for the Council phasing the rating differential down in accordance with an agreed formula and timetable to 2.8 times the residential rate, business would keep this matter out of the courts.

Christchurch and Auckland city councils have differentials of around 2.3 and 1.6 respectively compared with Wellington’s proposed differential of 4.2.

“It is most unfortunate that Wellington City has chosen to vary, and slow the rating differential phase down,” said Chamber CEO Charles Finny. “Wellington City has imposed the rating differential because it believes that it can get away with taxing the business community more heavily than residential rate payers, as business rate payers are less numerous than residential rate payers. There are also some Councilors who somehow believe that the business community can simply pass on charges such as rates. This is an attitude typical of people who have never run a business in their lives” he continued.

“This is another example of poor leadership from our Council, and it makes a mockery of the lip service being paid by the Councilors to the importance of keeping business in Wellington. Councilor Goulden, in particular, is using this issue as the central plank in his campaign for the Mayoralty. If he is serious, why isn’t he fighting to keep the agreed rating differential phase down this year? The most helpful single thing that Wellington City can do to keep business in Wellington is to keep rates down, and continue the rating differential phase down” Charles Finny continued.

“This is election year. The Council should not be hitting the business community to address its budget blowout. Instead it should be controlling its expenditure. If this policy back-down isn’t reversed expect the business community to remember this in October,”Charles Finny concluded.

ENDS

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