Hubbard plans 'congestion buster'

Aucklanders face an average rates rise of 11 per cent this year under a "congestion-buster" budget package announced by Mayor Dick Hubbard yesterday.

The package calls for an extra $60 million to be pulled from rates revenue over the next three years.

This means a 9.7 per cent increase annually - through new targeted rates - to help pay for projects such as speeding up transport improvements, increasing the supply of affordable housing and preserving volcanic cones.

The rest of this year's rates rise will come from a 2.7 per cent allowance for inflation.

But the package proposes to help residents on low incomes by redistributing the rates load - halving the uniform annual charge, which the last council, led by John Banks, brought in so all ratepayers paid the same for basic council services regardless of property value.

Mr Hubbard ousted Mr Banks in last October's elections and has had a strong input into this social blueprint along with deputy mayor Dr Bruce Hucker, of the City Vision team.

Mr Hubbard said Aucklanders wanted action on improving the city's transport and urban design and open space and to get it they had to put the money in.

"With this package we put the city's foot down hard to accelerate all the major transport projects within our city boundary and within our power," said Mr Hubbard.

"As well as being a congestion-buster, the package puts a firm focus on maximising the benefits of being a growing city while making this a better place to live."

But the package also proposes to atone for some of the actions of Mr Banks and the Citizens and Ratepayers-dominated council.

Mr Hubbard said the council was looking at ways of increasing the amount of affordable housing.

But this would be done through partnerships, possibly with developers, rather than through full ownership of rental properties.

The previous council sold its pensioner housing stock to the Government for $83 million in the belief that this was a central Government responsibility.

Mr Hubbard said the decision to reduce the uniform annual charge of the previous council from $189 to $95 a property would make Auckland a more equitable place to live.

He said the old rate meant many people on the lowest incomes were hit with a 37 per cent increase, while people in high-value properties saw less than a 5 per cent rise.

The package announcement was described by rival council factions as a "pre-emptive move" because councillors do not get to debate it until next Tuesday's annual plan meeting.

Subject to a final vote of approval on March 9, the package will be released as part of the draft annual plan for public consultation from April 20 to May 20.

The leader of the Citizens and Ratepayers team on the council, Scott Milne, said the changes meant a guaranteed increase of more than 30 per cent for many Aucklanders.

He said it was outrageous and unacceptable when residents were used to rate rises being held to inflation in the previous term of council.

"It clearly demonstrates that Bruce Hucker is running the city as it [the package] is one of the strongest socialist, left-leaning documents to come from city hall in decades."

Action Hobson councillors Christine Caughey and Richard Simpson said they opposed the plan because it was old-fashioned and wrong.

"It is old-fashioned because it relies on raising property rates and it is wrong because it will extract more cash from Aucklanders than the council legitimately needs," said Catherine Caughey.

"The City Vision/Labour rates hike plan is more about socking it to the rich than about getting Auckland moving again," said Mr Simpson.

Action Hobson said the city needed extra revenue to improve public transport and rejuvenate the city.

But Mr Simpson said there were many alternatives to the increases such as CBD congestion charges, hotel bed fees, rating Ports of Auckland, keeping gst on rates and making sure Auckland got its fair share of national taxes.

Former council finance committee chairman Doug Armstrong said ratepayers in $1 million properties faced rates rises of $1000.

But when the city was revalued for rating purposes next year, if the value of that property rose greater than the city's average, they could face a $1500-$2000 rates increase.

Where the money goes

* North Shore City Council is proposing a 4.95 per cent rates increase this year
* Manukau City Council is looking at a 5.9 per cent rise.

The package has targeted rates for boosting improvements over three years in areas crying out for attention.

* Transport ($42 million): Bus priority lanes on arterial roads; design of the widening of Dominion Rd; improvements for cycling, walking and parking in town centres; upgrade of Greenlane Rd; design of improvements for Neilson St, Onehunga; buying land for improvements to Dominion Rd, Great South Rd in Greenlane, Neilson Street in Onehunga and the Tiverton-Wolverton corridor in Blockhouse Bay.

* Open space and volcanic cones ($8.4 million): Buying land to provide more parks, reserves and open areas; protection of volcanic cones of Maungawhau (Mt Eden) and Maungarei (Mt Wellington) upgrading tracks and providing visitor facilities.

* Urban design and heritage preservation ($4.2 million): Additional protection for natural and built character and heritage; ensure quality urban design through guidelines, incentives and rules; complete overall city urban design plan.

* Community help ($4.2 million): Increase affordable housing by seed funding for partnership projects; improve access to community centres.

* Rates and water charge relief ($2.4 million): Compensate low-income residents who are least able to afford rate increases and wastewater charges.

What Aucklanders think

Auckland ratepayers spoken to by the Herald last night condemned Dick Hubbard's plan to increase rates.

* Melissa Browne of Westmere said a bigger bill would be tough on her and her husband. "We've got two young kids and budget is everything at the moment." The couple pay about $1000 in rates on their house, worth up to $500,000.

* Remuera ratepayer Phil Davis, 80, said the proposed increases were unfair on elderly people like himself and his wife. "We're only one of many, many people in their 80s maintaining their own home, not relying on the Government ... We're struggling to look after ourselves and all we're getting is beaten."

* A Grey Lynn ratepayer said increasing rates was going to make it harder for people to buy houses.

Other Auckland rates

* North Shore City Council is proposing a 4.95 per cent increase this year

* Manukau City Council is looking at a 5.9 per cent rise.