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Home / New Zealand

Councillors protest rate rise with letter to mayor

Bernard Orsman
By Bernard Orsman
Auckland Reporter·NZ Herald·
14 May, 2015 05:00 PM3 mins to read

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Len Brown has received a letter from six councillors outlining their concerns over rates rises. Photo / Greg Bowker

Len Brown has received a letter from six councillors outlining their concerns over rates rises. Photo / Greg Bowker

Auckland Mayor Len Brown has been asked to revisit an average 9.9 per cent household rates rise by a group of councillors concerned about the cost to ratepayers.

Six councillors yesterday wrote to Mr Brown, saying a transport targeted rate adds significantly to a level of rates that is already difficult for many Aucklanders to afford.

Last week, the council voted for a $114 targeted rate for every household to top up spending on transport.

The combined impact of the general rate and targeted rate for households is an average 9.9 per cent rates increase from July.

The councillors - Cathy Casey, Chris Darby, Mike Lee, John Watson, Wayne Walker and Ross Clow - believed savings could be found to reduce the targeted rate.

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They produced figures from Mr Lee showing a difference in rail operating costs of $60 million to $70 million between Auckland and Wellington. "The chief executive has been directed to report back on potential savings and operating costs for rail.

"These savings could be substantial. We signal our concern at progressing with the targeted rate at the present amount until a meaningful and objective report is available on potential rail savings," said the letter.

The councillors believed the transport targeted rate should be "revisited" at the earliest opportunity and before the new 10-year budget was completed on June 25.

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Four of the six councillors - Ms Casey, Mr Darby, Mr Lee and Mr Walker - voted for the targeted rate last week.

Their four votes and the votes of seven councillors who voted against the targeted rate make up a majority on the 21-member council.

Last night a mayoral spokesman said Mr Brown had received the letter and would consider its contents.

"The council consulted extensively with Aucklanders and we were clear in that consultation that the user charges options would require government legislation and support but that a targeted rate or levy would be needed in the interim.

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"The majority of people supported a fully funded transport network and recognised it would cost more money. There was clear preference for the option of a motorway toll as the best way to pay for this investment. Council is working with government to seek support for that option."

Mr Walker said he agreed with more spending on pressing public transport needs but believed the council should exercise more pressure on its own budget and the Government for assistance.

The public were not properly consulted on the targeted rate and when it was "pulled out of the hat" by Mr Brown two weeks ago the process was rushed, he said.

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