Significant rates rises are a real concern for pensioners in Hawke's Bay. Photo / Warren Buckland
Significant rates rises are a real concern for pensioners in Hawke's Bay. Photo / Warren Buckland
There are growing concerns for Hawke’s Bay pensioners and their ability to pay living costs as hefty rates rises take effect from July.
Age Concern Hawke’s Bay has noticed a “significant increase” in older people asking for help to cover food and accommodation bills.
Meanwhile, inflation and cyclone recovery costshave led to councils proposing higher-than-usual rates increases for the 2023-24 year, which begins on July 1.
All six councils in the region have released their proposed rates increases, which vary from 6 per cent to 13.2 per cent, and will mean most homeowners paying hundreds of dollars extra in rates annually.
Hawke’s Bay Regional Council has proposed the lowest rates increase, 6 per cent, but the regional council also wants to charge ratepayers an additional $75 fee to fund cyclone recovery efforts.
To put that in perspective, a homeowner in Napier with an annual rates bill of about $2700 will pay roughly $316 extra a year on their bill or an extra $6 a week.
Age Concern Hawke’s Bay manager Dee Withers said rates were a concern for older residents living on NZ superannuation.
“Any increase to living expenses, such as rates, creates a real challenge for those living on a fixed income.
“Age Concern has seen a significant increase with requests for support with food and accommodation costs, with many concerned about how they will continue to meet the ongoing increase in living costs.”
Napier housing advocate Dawn Bedingfield says it is a real concern for pensioners who can't earn extra income. Photo / Paul Taylor
Napier Housing Coalition co-ordinator Dawn Bedingfield agreed and said it was a serious issue for pensioners.
“If things keep going up — they have rates to pay, insurances are going to go up — how do they do it if they can’t earn any extra income,” she said.
“It’s just another thing you have to find in terms of that three-monthly rates bill.
“If you look at it on a weekly basis it is not so much, but when it comes in [every three months] it is an extra $80 or so.”
Bedingfield said other members of the community she felt sorry for, with regards to rates increases, were people who had recently bought a home and were already having to pay rising interest rates on their mortgages.
She said landlords may also choose to pass on extra costs to tenants, in the way of increased rent.
“The rents are at a maximum for what people can pay.”
At present, pensioners on NZ Super (65 and older) receive $579 a week (before tax) for a single person, or $440 a week (before tax) a person for a couple.
In comparison, Auckland Council has proposed a rates increase of 7.7 per cent as has Palmerston North City Council, while the South Waikato District Council has proposed one of the largest hikes in the country at 18.5 per cent.
Councils generally adopt their annual plans officially towards the end of June, or in some cases early July, and Hawke’s Bay councils have finished their community consultation process except for Wairoa District Council and Hawke’s Bay Regional Council.
Wairoa District Council initially announced a much-larger 15.4 per cent rates increase, but stated this week it had managed to reduce that figure to about 9.9 per cent.
That is due to a higher shareholder dividend from council-owned contracting company QRS.
Wairoa District Mayor Craig Little said, “we will continue to work to gain additional external funding” to help reduce rates further, before adopting the 2023-24 annual plan in early July.
Proposed 2023-24 rates increases:
Hawke’s Bay Regional Council: 6 per cent (plus a $75 one-off fee)
Hastings District Council: 8.5 per cent
Wairoa District Council: 9.9 per cent
Central Hawke’s Bay DC: 10.9 per cent
Napier City Council: 11.7 per cent
Tararua District Council: 13.2 per cent
Previously projected rates increases for 2023-24*:
Hawke’s Bay Regional Council: 14.5 per cent
Hastings District Council: 5.7 per cent
Wairoa District Council: 8 per cent
Central Hawke’s Bay District Council: 6.5 per cent
Napier City Council: 7 per cent
Tararua District Council: 6.7 per cent
*These projections are from council long-term plans and do not factor in high inflation and Cyclone Gabrielle
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.
