Council puts 11% rates hike for business on hold

Media statement May 30th, 2007

Council puts 11 per cent rates hike for business on hold; congratulated

When Peter Atkinson, an executive with the Employers & Manufacturers Association (Northern), told the Whangarei District Council hearings today that the proposed rates hike of 11.2 per cent for business was far too high he did not expect councilors would agree. But they did.

Mr Atkinson was presenting the EMA’s submission on the council’s 2007/8 Draft Annual Plan.

The Council also agreed that an independent study of the costs and benefits of the services paid by business rates should be done.

Mr Atkinson had said the study was needed in an effort to justify charging business five times more than residential ratepayers.

“The business differential should be got rid of altogether, Mr Atkinson said. “If rating in Whangarei were based on a property’s capital value business differentials would not be needed.

“They should be abandoned regardless of the Government’s general review of rating, which the council should not use as an excuse for postponing the change.

“Whangarei’s total proposed rates increase of seven per cent is the highest north of Taupo, and excessive compared to the rate of inflation.”

The EMA’s Whangarei membership comprises 197 businesses (mostly small) and other organisations employ a total 5339 staff and pay them in aggregate an estimated $264 million a year.

Mr Atkinson said the council’s last study done eight years ago pre-dates the Local Government Act of 2002, yet the council has persisted in charging its local businesses the third highest differential among the regions of EMA’s members.

“If the draft plan went through this year the average business would have paid $5845 in rates, up from last year’s $5263, an 11.2 per cent increase,” Mr Atkinson said.

“A recent revaluation resulted in an adjustment for residential and rural ratepayers, so why wasn’t there an adjustment for the business sector as well?

“According to the district’s Long Term Council Community Plan rates will continue to rise by a total of 72 per cent by 2015 – the third highest level in the 10 councils listed below.”

--

Comparison across the regions
Proposed rate increases for 2007-08 (with rating bases):

Auckland City - 3.6 per cent (annual value)
Manukau City - 5.9 per cent (annual value)
North Shore City - 6.9 per cent (land value)
Rodney District - 6.3 per cent (land value)
Waitakere City - 6.69 per cent (land value)
Auckland Regional Council - 4.9 per cent (activities/functions based)

Proposed increases in adjacent regions:

Hamilton City - 5.47 per cent
Tauranga - 3.9 per cent
Rotorua - 3.7 per cent
Whangarei - 7 per cent

ENDS

© Scoop Media