'Pan tax' replacement has cost sting for residents

Te Aroha and District Community Hospital chief executive Nikki Close said the pan tax would lift water fees from $600 to $12,000 a year: 'It's such a big deal to us.' Photo / Christine Cornege

A compromise over Matamata-Piako's "pan tax" could result in residents footing more of the bill than initially proposed.

The district council will make its final decision on how to charge for waste water this week after huge opposition to the proposal to charge non-residential premises based on how many toilets they have.

Under the pan tax proposal, businesses would have paid an extra $1 million of the waste water bill and faced increases up to 2000 per cent above the $593 annual fee charged to businesses and residents.

But as the council looks to appease businesses by using water meters to calculate how much more they pay, some of the money needed will have to come from residents.

Matamata-Piako mayor Hugh Vercoe believed the water meter system was fairer than charging a flat fee, but residents would be paying more than the $680 a year increase signalled in the draft long term plan.

"On a house equivalent their (non-residential) cost would be considerably less than the number of toilet pans which measures nothing."

Mr Vercoe said the council would make a final decision after finding out how much more businesses would pay than residents under the water meter proposal.

He said it had never been fair that single person in a one-bedroom home should pay the same as the big users and the council had to find a better way.

The council received about 500 submissions on the long term plan, with more than half opposed to the pan tax system.

Last week, it heard from businesses strongly opposed to the steep increases under the pan tax system which they said had no relevance to how much waste water was discharged.

Residents also told the council they couldn't afford the estimated $200 a year increase if it opted for the status quo and urged the council to pass the bill to businesses.

An increase of non-residential waste water charges is also concerning community hospitals, schools and not-for-profit organisations who said the increase could force them to close.

Mr Vercoe said they would still face an increase but it was possible a contestable grant could be set-up for organisations to apply to for relief.

Te Aroha Community Hospital chief executive Nikki Close said there was still a lot of uncertainty over the proposal and the hospital might not be any better off under the meter water system. Under the pan tax proposal the hospital would have gone from paying $600 to $12,000 a year for waste water.

"It's such a big deal to us," she said.

I don't know what the difference in water meters would make to the hospital. We would still be using a substantial amount of water."