Thursday, May 26th, 2005
North Shore sets record for highest rates hike, top business differential
North Shore city has been hiking its rates faster than any other city in the region, and continues to charge business
the highest rates differential in New Zealand.
These facts were pointed out to the North Shore City Council at its hearings on its annual plan today by Alasdair
Thompson, chief executive of the Employers & Manufacturers Association (Northern).
"North Shore's rating policies are a disgrace," Mr Thompson said.
"Council proposes to increase rates this year by 6.79 per cent, more than double the rate of inflation.
"It means that since 2000, cumulative rates on the North Shore have gone up 30.5 per cent.
"In the same period other cities have increased their rates as follows: Rotorua by 19.67 per cent; Hamilton by 18.29 per
cent; and Manukau by 19.32 per cent.
"Similarly North Shore continues to charge business property owners an unconscionable 7.48 times more than other types
of ratepayer.
"Council's own analysis shows business is responsible for 10.9 per cent of its costs but charges it 26.5 per cent of its
rates revenue.
"It means businesses pay $7.48 for every $1 of equivalent property value paid by residential property owners.
"If the Council wanted to encourage job opportunities in the city it would stop this.
"Many residential property owners own properties of far higher value than businesses, but it's the business property
owners who are called on to subsidise well heeled, residential owners.
"Other cities in the region charge nearly half the differential, and we have repeatedly told them they are
anti-business, inequitable and unjustified.
"For instance Hamilton's business differential is 2; Waitakere's is 4.02; Rotorua's is 4.3; and Rodney's is 4.3.
"The basis for business differentials is flawed, and they represent an abuse of power.
"We recommend North Shore adopt the approach of Tauranga. Tauranga has ditched rates based on land value and applies
them based on capital value, without the need to charge a business differential at all.
"The only thing we can find to commend council is for maintaining the Uniform Annual General Charge at the maximum
allowed."
ENDS