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Home / Bay of Plenty Times

Zizi Sparks: Rates bill a blow to those affected by Covid-19

Zizi Sparks
By Zizi Sparks
Multimedia journalist·Rotorua Daily Post·
5 May, 2020 09:00 PM2 mins to read

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PM Jacinda Ardern says New Zealand can take heart from there being no new coronavirus cases today. But she says it reflects the success of the lockdown rather than actions during level three.

COMMENT

This week I received my quarterly rates bill in the mail.

I shouldn't have been surprised, I knew it was coming. Yet every time one lands it's a little bit sad to have to part with such a large sum but it's what homeowners signed up for.

Even renters contribute to rates through their weekly rent, ensuring councils have the cash to keep water running, sewage where it belongs and rubbish collected. But also ensuring new builds and upgrades are funded to bolster the local economy.

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As frustrating as it is to have to accommodate annual rates rises, often they are justified.

But this year things are different. As a result of Covid-19 many will be keeping their dollars a little closer to their chests, evaluating what they are spending and where. And a $1000 rates bill, give or take, could hit hard for those who have taken pay cuts, lost business, or been made redundant.

A rates bill could hit hard for those who have taken pay cuts, lost business, or been made redundant. Photo / Getty
A rates bill could hit hard for those who have taken pay cuts, lost business, or been made redundant. Photo / Getty

In Rotorua the council is offering a rates deferral scheme for residents who satisfy certain criteria including reduced hours or redundancy and a mortgage repayment holiday. If successful rates would be deferred to August 2020 or be spread across a payment plan. Businesses are also eligible.

In Tauranga, the council encouraged residents to get in touch if they were having trouble paying rates.

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But whether you pay them now or later, rates still need to be collected. A deferral is simply putting off the inevitable.

Every cent not in a ratepayer's pocket is really going to have an impact right now so I'd hope councils spend those rates revitalising the local economy.

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There are projects to do and jobs to create while you're at it. But it's important councils pick the right ones. The need-to-haves, not the nice-to-haves.

Roading and infrastructure; not sculptures and innovative but non-essential projects.

Councils need to be careful they are not seen to be squandering ratepayers' money at a time when that money is tight.

It's important they make every dollar count.

• Covid19.govt.nz: The Government's official Covid-19 advisory website

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