Councillors asked for answers on rate rise

By BERNARD ORSMAN

Auckland Citizens & Ratepayers Now president John Collinge has called a meeting to get the group's councillors to explain a planned rate rise when they campaigned to freeze rates for three years.

He said the executive would demand answers on Tuesday about why the rates of 134,000 households appeared to have increased 9 per cent.

The Herald revealed yesterday that despite an asset sales programme, cuts in services and increased council charges, the C&R Now-controlled council was preparing to levy households a further $100 a year - equivalent to an average 9 per cent rates increase.

For the poorest households, the increase would be 18 per cent.

The right-wing ticket went into last October's election with a manifesto, signed by all candidates, saying "the rates levy would be fixed at the 2001-2002 level for the term of the council (but allowing for growth from increased property numbers)".

Mr Collinge, a former National Party president, said integrity was a key quality for politicians and a huge factor in voters' perceptions.

"The National Party lost about 10 per cent of its support overnight in 1990 when superannuation promises were not met.

"That turned the biggest landslide in New Zealand political history into only a marginal win in 1993."

He said members were aghast that councillors were not doing their very best to carry out their rates policy.

Deputy president Earl White said the executive needed to be briefed by councillors about the factors behind the planned increase, including a shift to a flat annual charge of $121 for rubbish collections.

That accounted for 5.4 per cent of the rates rise for the average household.

Last night, Auckland C&R Now leader and deputy mayor David Hay refused to comment on a leaked copy of minutes of a C&R Now joint committee meeting held on May 14 last year.

The minutes showed that he proposed to fix rates at the 2001-2002 level for three years.

The motion was carried and written into the manifesto.

"I have never made promises myself on rates or levies because you never know what is going to happen," Mr Hay said.

It was his understanding that rates would be inflation adjusted, would allow for growth and would comply with a policy of reducing the level of rates businesses paid in proportion to households.

"That is what we are doing, so in line with the manifesto we are squeaky clean," Mr Hay said.

Auckland Mayor John Banks, who vigorously campaigned against rising rates and promised to spend ratepayers' money as if it were his own, yesterday refused to discuss the impact of the draft budget on rates.

Instead, he attacked the Herald for "mischief-making", and asked for the name of the council source who told the paper that officers had never been asked to model a zero rates increase for residents.

Mr Banks also found himself in hot water with Auckland Regional Council chairwoman Gwen Bull for comments he made on radio blaming a rise in the ARC levy for a large part of the council's proposed rates increase.

She said the levy related to just 0.6 per cent of the increase.

"John Banks should get his figures straight before blaming the ARC for his own council's financial blow-outs," she said.

* Waitakere City householders face an 8.7 per cent rise in rates when the council meets next week to consider the draft budget.

Householders now pay about $1200 on average and the increase will mean a further $114 a year.

Mayor Bob Harvey said the council was paying the price for keeping rates artificially low for the past three years.