Auckland region rates up 4.9pc, councillors vote pay hike

Auckland Regional Council members last night approved a draft average 4.9 per cent rates rise for almost half a million ratepayers - then voted themselves a matching salary rise.

A pool of $695,000 for councillors' salaries and meeting payments will be small beer against an overall rates take of $126 million towards a budget of almost $230 million.

But chairman Mike Lee had to use his casting vote to back a 4.9 per cent salary rise after Auckland Chamber of Commerce chief Michael Barnett, prompted an even show of hands by calling for a 3 per cent cap to show leadership against inflation.

Mr Lee's salary of $130,000 to $140,000 is settled separately.

The council has plenty of trimming elsewhere, however, as a 10-year funding plan will not provide enough to buy the replacement rail fleet eagerly sought by the Auckland Regional Transport Authority.

The authority, a council subsidiary with a more than $700 million funding gap over 10 years, will probably have to rely on doing up more old locomotive-hauled trains to meet a goal of doubling rail patronage before the 2011 Rugby World Cup.

Improvements to bus and ferry services are also likely to be slower than preferred, although Mr Lee said his organisation was considering various funding sources.

These are believed to include possible transport levies on developers.

The authority initially sought $2.5 billion from the regional council, including about $1 billion to buy new electric trains, upgrade ferry terminals and introduce new ticketing and passenger information systems.

But the regional council has already quadrupled its annual transport spending from $36 million in 2001 to a proposed $127m next year, and cannot take any more from ratepayers.

It says it can afford only about $560 million in transport capital investment, after committing more than $1 billion to the cost of running trains, buses and ferries.

This leaves a potential shortfall of up to $900 million, although the authority hopes the gap will shrink to $700 million if the Government pays the full cost of rail-track upgrades.

Mr Lee said the region's public transport system was already better than before and would continue to improve, but not to the level "that Aucklanders are crying out for".

"We believe that any more than the proposed 4.9 per cent residential average rate increase is beyond the limits of public acceptance."

A new 1.8km rail link between the main trunk line and Manukau is shelved.

Manukau Mayor Sir Barry Curtis said $11 million was available for earthworks on a $40 million to $50 million project which he deemed essential to his city's development.

But Government will pay only for the tracks, leaving stations and infrastructure to the authority.

Meanwhile, some regional councillors indicated last night that they would fight to reduce a differential rate for businesses which is 60 per cent higher than what householders pay in relation to the capital valuation of their properties.