Auckland Council rates unfair to business

23 May 2012

Media release

Auckland Council rates unfair to business....

Until Auckland Council removes the rates differential on business, Auckland’s rating system will be unfair, says Auckland Chamber of Commerce head, Michael Barnett.

He was commenting on Auckland Mayor Len Brown’s statement today that the Council remains “completely focused on fairness across the entire rating base.”

The facts show otherwise, said Mr Barnett. “A 2007 review of the rating system emphasised that shifting the rating system from a land value based system to one based on capital values made paying a business differential unfair and unnecessary.”

The Auckland Council mandate to move to a rating system where properties of equal value pay equal rates and everyone is treated the same should mean exactly that.

The fact that Council has traded off removing the business differential in order to subsidise lower rates for the bigger voting power - residential property owners – against a sector that doesn’t get to vote speaks for itself – business provides Auckland’s jobs and wealth creation, and continues to be Council’s cash cow. “That’s unfair!”

A fair rates system would remove the 2.63 differential that Council approved today – it is a decision that is counterproductive to Auckland being an inclusive and equitable city, said Mr Barnett.
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