Letters: Rates rise better option than service cuts or lending

Rising rates is the best option to pay for earthquake damage to this iconic building, according to a letter writer. Photo/file

During the 2016 local body elections, there was a minor populist campaign to get Rotorua Lakes Council candidates to sign up to a pledge to keep rates rises at or below 2 per cent. Thank goodness that 9 of 10 councillors elected to council did not make a pledge to fetter their future options.

The council is now facing a $400,000 per annum shortfall in revenue as a result of the unexpected damage and subsequent closure of the Rotorua Museum, along with having to find funds to pay for the insurance excess on its repairs.

Had the councillors signed up to the pledge, Rotorua would have either had to take on additional debt, or make cut backs in terms of services and facilities planned for within Rotorua's long term plan. Neither of which should have been a palatable option for anyone.

Seeing as the National Government has been hell bent on making 2040 the year for the next generation to deal with their mistakes, it is I believe a testament to the foresight of our local councillors that they are willing to deal with the issues we're facing now, instead of kicking the can down the road for someone else to deal with.

On average, the proposed rate increases will amount to about an extra $1.60 per week, in my view this is a small price to pay to ensure Rotorua can keep moving forward, instead of into a stymied future that would have left no one better off.

RYAN GRAY
Rotorua

Business sense lacking

The reasons given for the increased rate hike in Rotorua to cover the museum loss of income only serves to demonstrate the lack of business acumen by both council staff and those elected to manage our economy.

No self respecting businessman would fail to ensure that the policy covering his business adequately took care of covering loss of income.

Did that happen here? Of course not, this is the "Rotorua Way" - short on the practical issues and long on the glamour stuff.

Don't be misled into thinking this is a "one off". The precedent has been set and will carry on as long as the council sees fit. Once the museum is up and running again there will be some other "council business" with a shortfall. I'd put money on it!

Contrast that to Wellington where the City Council building, in the same earthquake, suffered damage and is in need of restoring to meet full earthquake compliance at a cost of $30 million.

Wellington's mayor has stated categorically, on national radio, that there will be no increase in the 3.3 per cent rates to pay for this even though funding will come from this year's budget.

ROSEMARY MACKENZIE
Rotorua