By BERNARD ORSMAN
Auckland City's latest budget means pensioners are looking at possible net rent increases of between 5 and 12.7 per cent.
Under Auckland Mayor John Banks' first budget, the poorest city households are facing a rates rise of about 8.5 per cent, Pacific Island and Maori scholarships are for the axe and general and pensioner housing is likely to be sold.
Mr Banks says his budget is sensible and reasonable and a platform to bolt down some key policies, including completion of the roading network.
His focus on "core business" has been compared by the Prime Minister Helen Clark to 1991, when the National Government slashed welfare payments, introduced the Employment Contracts Act and brought in market rents for state houses.
The council's 25.7 per cent holding in Auckland Airport will be sold for up to $575 million to repay debt and build a convention centre to boost the Auckland economy.
Business rates will fall, but only by 0.6 per cent or less.
There is money for America's Cup parades ($260,000), propping up the financially troubled Edge ($1.4 million) and studies into the eastern motorway ($887,000) and the convention centre ($200,000).
It emerged over three days of budget discussions that pensioners would be worse off under Mr Banks, even though he told the Herald on November 26 that "there were many other deep veins of ratepayers' money than looking to pensioners to make savings ... They don't have any additional income".
The council plans to put up the current rents for 1700 pensioners from $58.60 for single people to between $80 and $90 and from $90.20 for couples to $110.
While pensioners will be able to claw back much of the increase by claiming the accommodation supplement, they will still have to find between $4.99 and $8.79 a week extra.
This equates to a net rent increase of between 5.1 per cent and 12.7 per cent.
Doreen Follas, a 67-year-old pensioner living at the New Windsor Rd pensioner village in Avondale, said last night that she had no spare money to pay extra rent. "What do councillors think? We have got money hidden under the mattress?"
Dr Bruce Hucker, who leads the City Vision ticket, said the council was on a path that would damage the community, the economy and the environment.
Labour councillor Richard Northey accused the Auckland Citizens & Ratepayers Now-controlled council of using "smoke and mirrors accounting" to dress up a 5 per cent rates rise for average households and 8.5 per cent for the poorest households as a uniform annual charge for rubbish collections.
But Bill Christian, an independent councillor who supports C&R Now, said it was a positive budget that killed debt, got a convention centre and indoor arena under way and finished the roading network.
The public will be able to make submissions on the budget between April 19 and May 30.
DRAFT PLANS
* Reduce verge mowing from fortnightly to monthly, saving $450,000 a year
* Reduce free events budget by 20 per cent, saving $93,000 over two years
* Remove general tree protection, saving $550,000 a year
* Increase fees for community halls
* Reduce community advice and development, saving $397,000 a year
* Cut Pacific Island and Maori tertiary scholarship scheme, saving $62,000 a year
* Axe green waste coupon system from July
* Raise on-street parking fees from $3 to $4 an hour in central Auckland
* Spend $200,000 on developing a convention centre
* Spend $260,000 on an America's Cup welcome and victory parades
* Increase The Edge operating budget by $1.4 million to $3.3 million
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