Far North’s record rates rise will hit the lives of thousands hard: Dover Samuels

Veteran local body and government politician Dover Samuels has a stark warning amid rates rises. Photo / Michael Cunningham

The lives of thousands of people will be hit hard by a record 16.5 per cent rates rise proposed for the Far North, former council Deputy Mayor Dover Samuels has warned.

Samuels, a veteran local body and government politician, said there was no way ratepayers of the Far North would be able to bear the proposed FNDC rates rise for 2024/2025.

“The proposal to strike a rate increase of 16.5 per cent is unthinkable considering the acute hardship and cost of living crisis that is facing our community at present,” Samuels said.

“Yes, the mayor might say the pending three-year Long Term Plan is a catch-up, but thousands of people across the Far North are already struggling to put food on the table.

“They can’t afford such a rates rise.”

Samuels said the proposed rates rise would become the defining moment of Far North mayor Moko Tepania’s first term.

He had been elected as the youngest and first Māori Far North Mayor, along with a new council, to much fanfare and a sense of great hope in October 2022.

Samuels said that time of hongi and great celebration offered by the election had now passed.

The mayor and councillors would be judged for their performance 18 months down the track, in setting its 2024/2025 rates, he said.

In response, Tepania said the council had faced major challenges since its 2022 election.

“Although our council is 18 months into our term, we have been dealing with ex-tropical Cyclone Hale, Cyclone Gabrielle and a multitude of severe weather events that have left our communities and our infrastructure in far worse shape than when we were elected.

“The proposed 16.5 per cent rates increase for the Far North is a figure we have been working hard to decrease while enabling our current levels of service to continue.

“That’s alongside the need to ‘catch-up’ on outstanding infrastructure deficits and storm-related damage.”

Far North kahika Moko Tepania. Photo / Michael Cunningham

However, Samuels said Far North District Council (FNDC) needed to realise it was not business as usual as the region faced escalating poverty.

“I’ve never seen things like this before,” he said.

FNDC councillors needed to be realistic.

“Perhaps it’s time that all the people of the Far North pay for the services provided by the council, not just the ratepayers,” Samuels said.

Samuels said FNDC’s proposed 16.5 per cent rates increase might be able to be borne by areas with more higher-income ratepayers, but that was not the case in the Far North.

Tepania said FNDC’s 2025/2025 rates challenge was no different to that facing councils across the country.

“All 78 councils in Aotearoa New Zealand are facing the reality of the cost pressures involved in serving our communities and are consulting on proposals for high rates increases required to cover these costs,” Tepania said.

The coming year’s rise comes against a background of FNDC rates rising by about 30 per cent at the end of the next three financial years.

This includes an average general rates increase of 16.5 per cent for 2024/2025 starting in July, 7.9 per cent rise for 2025/2026 and 4.6 per cent for 2026/2027.

In Northland, FNDC’s proposed rates rise compares with a record 18.3 per cent Kaipara District Council (KDC) 2024/2025 increase, 17.2 per cent proposed rates rise for Whangārei District Council (WDC) plus between 2.8 and 1.5 per cent Northland Regional Council rates rise.

Local Government New Zealand recently indicated an average 15 per cent rates rise across two-thirds of the country’s 75 councils.

FNDC’s 2024-2027 LTP public consultation document shows the council will collect $398 million in rates during the next three years.

Public consultation on FNDC’s 2024-2027 LTP opened on March 26. The next council drop-in session is in the council’s Te Ahu Kaitaia service service centre today at 5pm, followed by Kaikohe the next day from 10am – 6pm. Public consultation closes on April 28.

Verbal LTP submissions will be held on April 30 and May 1 and 2. Council deliberations will be on May 20 and 23. The LTP will be adopted on June 26.

LDR is local body journalism co-funded by RNZ and NZ On Air