Goff's finance chairman concerned at 2.5 per cent rates rise

Auckland Mayor Phil Goff and his finance chairman Ross Clow are at loggerheads over a proposed rates rise. Photo / Nick Reed

Auckland Mayor Phil Goff and his finance chairman Ross Clow are at loggerheads over a proposed 2.5 per cent rates rise next year.

Goff has put a 2.5 per cent rates rise on the table to keep an election promise to hold rates at 2.5 per cent over the next three years.

But the Labour councillor he promoted to chair the finance committee, Ross Clow, today said at the final governing meeting of the year he was "deeply concerned about the severe pressure" the council was under from a 2.5 per cent rates rise.

He worried about the impact of lower rates on a $400 million shortfall in a new transport project agreed between council and the Government.

Chief executive Stephen Town said of all council activities, transport was under the most pressure from population growth.

Town said the $400 million gap in the Auckland Transport Alignment Project was a conservative figure and the aim was to stretch and accelerate transport spending.

Town said a 2.5 per cent rates rise cap over an extended period of time would set challenging targets, but officers would back themselves to achieve them.

Setting rates rises at 2 per cent - favoured by some councillors - becomes "unmanageable without you having very important and honest conversations about trade-offs", said Town.

Goff said the council was considering other revenue options, such as a fuel tax or a congestion tax.