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Home / New Zealand

Editorial: Auckland Council's climate action levy a new direction

NZ Herald
3 Dec, 2021 04:00 PM4 mins to read

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Auckland Council plans to charge a climate change levy as part of rates bills. Photo / NZ Herald

Auckland Council plans to charge a climate change levy as part of rates bills. Photo / NZ Herald

Editorial

EDITORIAL

Amid a busy news week, Auckland mayor Phil Goff's audacious plan for a climate change levy in with rates bills may have slipped under the radar for many. But it will likely draw a lot more attention.

The proposal for a climate fund is part of Auckland Council's first draft of its annual budget for 2022/23. The budget will be released for public consultation.

"A recent progress report on our Climate Action Plan states that Auckland's emissions are not remotely tracking in line with our target to reduce emissions by 50 per cent by 2030," Goff said.

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A targeted rate would aim to raise about $574 million over 10 years, specifically for measures to reduce the city's carbon emissions. These would include increasing the number of bus, ferry, cycle and walking options in the city and more tree planting. A further $471m could be sought through Government funding.

Goff said the levy would mean a cost of about $1.10 per week on a house worth $1.18m. That's a quarter of the price of a standard-sized flat white or a McDonald's cheeseburger.

The biggest levy burden will be on those who can afford multimillion-dollar homes and the most benefit will be to those open to using public transport.

What's interesting about the plan is it represents a strategic shift in how the ongoing costs of climate change measures could be paid for.

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Previous climate-linked measures in the country have been controversial and attracted emotional opposition from people who felt targeted. For instance, the Government backtracked on a plan for a cycle bridge over the Waitematā after protests. The Groundswell demonstrations have reflected a rural and town/metropolitan divide, with country folk motivated enough to drive tractors up city streets.

A city levy opens up the possibility of dealing with the problem in a low-key, practical way, rather than as something to defensively fight over.

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In theory, it is shifting climate from the national political stage of policy mud-wrestling to the more mundane world of local services.

That may make the levy easier for people to accept. It is a harder target to take on than a single-project harbour bridge for cyclists and walkers.

However, climate is one issue that's a red rag to a section of the population who feel generally disgruntled with the direction the country is headed.

And the levy lands in a difficult economic and emotionally stressful period for Auckland. Financially stretched people and businesses are focused on getting help - not having to pay more.

People in the hospitality industry have slammed a Covid support package aimed at helping the city rebound after being left out of the $37m voucher scheme.

Data shows inflation is hitting the poorest New Zealanders the hardest with rising costs.

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On the brighter side, the unemployment rate is at 3.4 per cent. The vaccine-based traffic light system should give a bit more stability going forward, with less chance of lockdowns.

Aucklanders are feeling relief at having passed through a long tunnel to a place where they can do more things, albeit with masks and vaccine passes. Delta cases and hospital admissions have steadied somewhat and the Auckland health region isn't far off the target of 90 per cent eligible residents being fully vaccinated.

Looking ahead, economists predict that recovery will be slow from the mammoth Delta lockdown compared to the restrictions in early 2020.

The lockdown will be about four months in duration when Auckland's border is finally lifted to vaccinated people in mid-December.

Covid-19 construction costs and delays have hit existing Auckland city projects during that time.

With a planned 3.5 per cent general rates increase on top of the 2.4 per cent levy, the Auckland rates rise next year will be 5.9 per cent.

That is likely to make the climate levy unpopular with vocal groups, despite Goff's statement that "we've heard clearly from Aucklanders that they want us to do more on climate change and to improve our public transport system".

The levy's progress will be watched closely. If successful, the approach is likely to become more common in the future.

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