Darrin Walsh: Ratepayers right to scrutinise increases

Darrin Walsh

In a week that has seen Rotorua Lakes Council's Long-term Plan submissions heard, our farming community came to town to let their voices be heard.

There appeared to be more noise around the proposed refuse collection programme than around the proposed rates increases.

Over recent weeks I have spoken to a number of our members and we have met with council to share our concerns with their proposed rates increases.

It would be fair to say that most people I have spoken with entirely get the fact of where council finances currently sit. They get that previous increases in rates were never going to produce the necessary revenue service debt and allow a business as usual budget.

They also gained understanding that the council previously funded a large portion of the operating costs, which for those of us in business is not a good sign.

It is also fair to say most people understand that a balancing of the books is required for this current council to make serious steps forward in rebuilding their financial position.

This, however, should not take away the impact the proposed rates increases will have on our farming and business communities. If you accept all that I have stated above, you may well think that an average 11 per cent and 19 per cent increase on the face of it is acceptable as a one-off to balance the books.

Unfortunately though it is not a straight 11 per cent or 19 per cent, it is an average.

As we now know, some of our farmers are facing increases of 49-50 per cent - in one case a 42 per cent increase adding $15,000 to the rates bill - at a time when dairy prices have fallen substantially. We can debate the system used to drive rates and we can question the council's spending programme until the cows come home (excuse pun).

However, the simple fact is that in such cases where rates are being increased by ridiculous numbers we need to accept that there will be hardship and stress caused.

I ask that the council look seriously at each case and negotiate to alleviate this hardship.

Rotorua needs to come together and work this issue through. We all want Rotorua to grow and we all want the bells and whistles of upgraded aquatic centres and weekly rubbish collections, but we also need to accept the cost of it.

I hope that through the deliberation process the council accept this cost cannot be 40-50 per cent increases and they look to work closely with our farming community to get a more acceptable level of increase.

- Darrin Walsh is chief executive of the Rotorua Chamber of Commerce.