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Home / New Zealand

Hawke’s Bay Regional Council sets aside pool of $1m to give to thousands of residents - if they ask for it

James Pocock
By James Pocock
Chief Reporter, Gisborne Herald·Hawkes Bay Today·
26 Aug, 2024 08:57 PM4 mins to read

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Anyone paying a Public Transport Rate between $200 and $400 can apply to have it cut to $200, while people who pay more than $400 are eligible to apply for a 50% remission - they have a week and a half left to do it. Photo / Warren Buckland

Anyone paying a Public Transport Rate between $200 and $400 can apply to have it cut to $200, while people who pay more than $400 are eligible to apply for a 50% remission - they have a week and a half left to do it. Photo / Warren Buckland

Thousands of Hawke’s Bay property owners have just over a week left to apply for rates remissions from a $1 million pool set aside for them by Hawke’s Bay Regional Council.

One councillor believes the remission application process is “flawed” and “unfair”, but the regional council says it is doing all it can to provide opportunities for remissions.

According to a council spokesman, $1m has been set aside this year for remissions across all policies, including natural calamity, utilities, policy changes and public transport.

“Of these remissions, natural calamity and new policy changes are based on extreme financial hardship,” the spokesman said.

He said based on general economic conditions, it might be reasonable to expect more people will qualify for hardship-based remissions this year versus last year, and the $1m set aside was a “precaution” based on these conditions.

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About 1500 properties are also eligible for the Public Transport Rate remission this year.

“As part of the LTP [Long Term Plan] decision process on July 10, in a public meeting and in response to public concerns about affordability, [the] council adopted a remissions policy around the public transport rating area,” the spokesman said.

“Councillors heard the concern and decided to offer a one-time rates remission for ratepayers who are newly in the public transport area.”

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Hawke’s Bay Today reported in May on the case of one Havelock North resident who was facing a $700 proposed annual targeted rate for public transport despite not having a bus stop nearby.

According to the regional council’s website, anyone paying a Public Transport Rate between $200 and $400 can apply to have it cut to $200, while people paying more than $400 are eligible to apply for a 50% remission.

Under the regional council’s Rates Remission and Postponement Policies adopted on July 10, a written application for any type of remission outside of remission of penalties on rates must be made by the ratepayer 14 days before the due date of payment, except in “extenuating circumstances”.

Regional council rates are due for payment by September 20.

Regional councillor Neil Kirton said he was “not a fan of the approach at all” with regard to the need for ratepayers to apply for their remissions.

Regional councillor Neil Kirton described Hawke's Bay Regional Council's rates remission process as "flawed" and "unfair" for some.
Regional councillor Neil Kirton described Hawke's Bay Regional Council's rates remission process as "flawed" and "unfair" for some.

“If you are trying to correct a rating issue of affordability, that needs to be incorporated into your thinking from the start as opposed to trying to retrofit policy to recognise a problem,” Kirton said.

“It doesn’t sit well with me at all.

“It is very much down to the individual ratepayer to be alert to it and, to me, it is a flawed process and one that I am disappointed we have had to engage with.”

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Kirton said he would advocate for the regional council to send letters to all affected ratepayers, informing them of the remissions and inviting them to contact the council for advice.

“As many people as possible need to be told exactly what is going on, otherwise you end up with a very anomalous and unfair situation between those who are aware and have knowledge of remissions and those who don’t.”

The council spokesman said it was running a five-week advertising campaign including information about remissions, with the same information available on its website and Facebook page, and it would reach out to affected ratepayers directly to ensure people were aware if they were eligible for remission.

The spokesman said remissions could not be applied before the bill went to ratepayers.

“[The] council can provide opportunities for remissions and that is what it has done.”

The regional council planned to request a special dividend of $2.85m from the Hawke’s Bay Regional Investment Company Ltd (HBRIC Ltd) to help maintain Hawke’s Bay Tourism funding in 2024-25 ($1.52m), provide $400,000 to support biodiversity and biosecurity efforts in the next three years, and fund its rates remission budget in 2024-25.

James Pocock joined Hawke’s Bay Today in 2021 and writes breaking news and features, with a focus on the environment, local government and post-cyclone issues in the region. He has a keen interest in finding the bigger picture in research and making it more accessible to audiences. He lives in Napier. You can contact him at james.pocock@nzme.co.nz.

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