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Home / New Zealand

Pensioners on attack over rising rates bills

Bernard Orsman
By Bernard Orsman
Auckland Reporter·
27 Feb, 2007 04:00 PM4 mins to read

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Rates are rising - what needs to be done? >> Send us your views >> Read your views

KEY POINTS:

The 278 residents of Waitakere Gardens Retirement Village had 278 reasons to vent their anger when the independent Government inquiry into local body rates came to Auckland yesterday for a chat with councils and ratepayers.

Last year, the Waitakere City Council increased the residents' rates and water bills
by 87 per cent. After paying $450 in 2005, they were shocked to learn that their rates were $600 and they faced a new fixed wastewater charge of $350 - a total of $950.

Village spokeswoman Mavis Heinemann said the wastewater charge was unfair to residents on a fixed income, and pointed out the small units had no baths, no gardens to water and few residents had cars to wash.

The superannuitant implored the three-member inquiry for changes so that residents paid only for the water they used.

At the start of yesterday's "dialogue", inquiry head David Shand said it was easy to complain and raise problems but the inquiry wanted constructive ideas to put into its report.

Representatives from the seven Auckland territorial councils and Auckland Regional Councils attended a morning session to discuss the major issues and offered ideas for extra revenue, such as a regional petrol tax to boost transport funding and bed and departure taxes on visitors.

About 60 members of the public turned up in the afternoon, mainly to vent their anger and opinions. They had few suggestions for improvement.

A second public meeting is planned in Auckland on April 18.

"It's pretty poor," said Joan Baker, of Epsom. "I speak as part of a growing section of society of older people on fixed incomes who fall into the category of asset rich, income poor. Rates are increasing all the time without any regard for our ability to pay."

Joan Baker said the inquiry was focused on finding alternatives to rates but more attention should go on the costs of things such as sister-city relationships that councils foisted on ratepayers.

Auckland City yesterday announced it was adding Hamburg to a list of six sister cities and that Mayor Dick Hubbard, councillor John Hinchcliff and international division head Caroline Lassiter had already had a business-class trip to the German city.

John Lindley, of Mt Roskill, said the problem with rates boiled down to how efficient councils were at giving value for money.

Franklin Federated Farmers chairwoman Wendy Clark said the rating system needed to move away from property owners being the major funders of local government.

Farmer Jock Anderson said the rural third of the Franklin population was paying two-thirds of the rates.

"If you think that is fair and equitable, well done," Mr Anderson said.

Allen Davies of Waiheke and Gulf Islands Grey Power said the system of property rates was an antiquated form of revenue collection that no longer met the needs of society.

Auckland Regional Council chairman Mike Lee said there was a widespread public suspicion that councils did not manage their costs as well as they could and he wondered if councils had become victims of their own hype.

Mr Lee said the ARC raised rates by 34 per cent in 2003 to improve public transport but there had not been a 34 per cent increase in patronage. Likewise, Auckland City Council hyped its 2005 budget as a congestion buster but congestion was not busted.

Manukau City councillor Colleen Brown said many residents were running out of patience and had had enough of rising rates.

After the meeting, Mr Shand said the level of dissatisfaction was stronger in Auckland than in Hamilton and that might reflect some issues specific to Auckland, including those between the ARC and local councils.

RATES WARS

Problems


* Government-imposed tree trimming, $500,000 a year - Waitakere City Council

* Graffiti damage from one spray can, $700-$800. Total cost $1m a year - Manukau City Council

* People living in expensive properties on low fixed incomes are struggling to pay rates - All councils

Solutions

* Local GST

* Regional petrol tax

* Bed and departure taxes on visitors - Auckland City Council

* Plus or minus 10 per cent cap on average rate - Cockle Bay Residents and Ratepayers Association

* Interest-free or low-interest loans for capital works - North Shore City Council

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