Robin Lieffering is part of Positive Ageing Advisory Group to WDC and says council are in a difficult position at the moment. Photo / Tania Whyte
Robin Lieffering is part of Positive Ageing Advisory Group to WDC and says council are in a difficult position at the moment. Photo / Tania Whyte
A 10.9 per cent rates increase in Whangārei would have widespread impacts on the district’s poor, elderly and those struggling to pay their bills, expert say.
Whangārei District Council (WDC) announced the increase was being considered in time for the 2023-24 annual plan. An increase of 7.9 per cent was also discussed, though less favoured by the council, and the council has asked for public submission on both potential increases.
The rise is due to the ongoing impacts of inflation and Cyclone Gabrielle, according to the council, and would provide at least a 2.5 per cent allowance for roading repairs and maintenance.
“Our community needs a well-maintained, safe and reliable roading network for our communities and economy to thrive,” said Mayor Vince Cocurullo.
Former councillor and chairwoman of the Positive Ageing Advisory Group for the Whangārei District Council Robin Lieffering said the impact of such a significant rise could be widespread.
“Of course, it’s going to be a financial burden on people with fixed incomes,” she said. She also said the impact could be “quite severe” on home owners and young families.
She acknowledged that the council was in an awkward position after Cyclone Gabrielle and subsequent damage to roads.
“Roading is one of the most expensive items a council has to cover,” she said.
Lieffering said looking at the almost $1 million being spent on saving the Hundertwasser, “there are a lot of people who will be feeling a bit cross”.
She said that money could be “so much better” used on other things, “but I don’t believe you could let the Hundertwasser close, that would be a disaster”.
“They’re (the council) here to represent the community, not to dictate,” she said, “but they’re in a position with an awful lot more information than the general public have (to make decisions).”
Financial Mentor at the Anglican Care Centre, Dianne Harris said though the rate increase will largely affect homeowners, “it will have a spiral effect.”
“As a landlord, there is a likelihood that rent will go up,” she said, “basically we need to prepare ourselves for that.”
Harris said if the rates were to go up, it’s best for people to communicate with the rates department if they’re struggling.
“See how they can assist you,” she said, “they might say why don’t you start paying this amount on a regular fortnightly or weekly basis.”
Whangarei Anglican Care Centre budgeting coordinator Dianne Harris says going to the source for advice is the best step forward if you struggle with rates. Photo / Supplied
“So the most important advice is if you are struggling, contact the source.”
She said re-evaluating budgets was a key way to manage an increase, such as cutting out non-essentials.
“It’s something we don’t have control over, so we’ve got to learn how to deal with it.”
President of advocacy group Grey Power, Ron Greenwood described himself as “surprised” at the proposed increase, and is concerned about the impact on those in the 65-plus age group.
He believes an increase should occur over time, otherwise, it could “severely impact” the community.
“We can’t really cope with that amount of increase all at once,” he said.
Ron Greenwood of Grey Power Whangārei is worried about the flow-on effects from a 10.9% rate increase. Photo / Supplied
“Our income is fixed and over 65s’ budget is already stretched with the cost of living increasing all the time,” he said, “some may be forced to sell up and move to where rates are cheaper.”
Greenwood said the council needs to listen closely to public opinion on the proposal.
“Perhaps they could increase the rates gradually over a period of time,” he suggested.
Three weeks ago council met about the annual plan, and Hikurangi-Coasta general ward councillor Gavin Benney expressed concerns about the prospect of a 10.9 per cent rise.
“I’m thinking of the young kids with mortgages who are now paying an extra $300-400 a week because their mortgage rates have gone up, because of all the other fees that have gone up, because of all the issues we’ve got, and we are just going to contribute to that.”
Whangārei Heads general ward councillor Patrick Holmes said in these “extraordinary times” the cyclone was a “game-changer for the district”.
“What it did do was highlight the precarious state of our essential infrastructure which we knew anyway.
“I think it’s essential that as a council we are transparent and open and we go and listen to what our residents say and fundamentally this is about spending whatever we take [rates] wisely.”
