It was interesting to hear today on National Radio of the solution by the FNDC to the problem of collecting rates on land with multiple owners, such as Maori land. The new approach is a pragmatic and common sense solution to a problem that has gone on foryears and it is good to see that the council is capable of arriving at such decisions.
Mayor John Carter spoke of an example where on a particular block of land unpaid rates had accumulated to over $100,000 with no sign of ever being paid. The solution was to wipe the debt and start again. The new rates were to be approximately $18,000 but with some adjustment this was reduced by about half.
The distinct impression was that all this was possible due to the multiple ownership aspect. Within two days of sending the account the council received a cheque, which pleased them greatly, as I am sure the drawers of the cheque were as well.
I have no beef whatsoever about this process, but in fairness to regular ratepayers there needs to be a bit more clarity and transparency about it. In particular, what was the process in reducing the new rating amount? We would all welcome some of that.
The normal process is that rates are assessed on land value, as calculated by QV, who are contracted by the FNDC to value the district. From there begins the standard "It's them, not us" game which council and QV play. Council claim they only set the rates and are not responsible for the land values, and QV say the rates aren't their problem, they only set the values.
What would be common sense and pragmatic would be for the FNDC, as the hirer of QV and therefore should have a bit of clout, to instruct QV to set values which are relevant to the North and the people who live and work here. Not what the land might sell for to overseas buyers and developers.
