Media release
VAN – Valley Action Network
4 September, 2007
Unaffordable rates rises demand Rates Justice, says Valley Action
Network
A government report released last week confirmed what many grassroots
Hutt residents already know.
The Local Government Rates Inquiry has found that more and more
ordinary New Zealanders are finding their rates bill unaffordable, that
rating systems are unfair to low-income households and that councils
are too focused on paying off debt.
"Hutt City Council is guilty on all three counts", said VAN
spokesperson Grant Brookes. "But the biggest injustice is that while
ordinary people struggle, millions of dollars have been slashed from
the rates bills of big corporations."
Four of the councillors now standing for re-election voted in 2003 to
give a $2.3 million rates remission to Westfield corporation, owners of
Queensgate Mall.
They are Joy Baird, Glenda Barratt, Angus Finlayson and Ray Wallace.
Former Hutt 2020 Mayoral candidate Scott Dalziell also voted for the
rates remission for this multinational corporation.
"Westfield aren't the only ones who've benefited", observed Grant
Brookes. "Any other big corporation with $2.5 million to spend can
apply to get their rates cut, too.
"Hutt City residents deserve Rates Justice. Our policy, released today,
will deliver it."
The policy, reproduced below, is part of VAN's six point programme:
• A Human City – Putting people before big business interests
• A Green City – Action on climate change. Zero tolerance for polluters
• Grassroots Democracy – Community Boards for all, with extra powers
• Rates Justice – Reductions based on need. Residents before greedy
corporations
• Free Council Services – Not just protected but extended
• Free and Frequent Public Transport – It makes climate sense and
serves the people.
The group will be putting detailed statements on all six points in
front of voters and on its website (www.huttvan.org.nz) before the
election.
In order to vote, Hutt City residents must either be on the electoral
roll or they must contact the electoral officer at Hutt City Council
on 570 6792 to request a ‘special declaration’ voting paper from.
Postal voting takes place from 21 September to 13 October.
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Rates justice – Reductions based on need. Residents before greedy
corporations
The biggest corporation in Lower Hutt has been let off paying millions
of dollars in rates.
Westfield, the owner of Queensgate Mall, was given a three-year, $2.3
million rates remission by Hutt City Council at the end of 2003. This
slashed its rates bill for 2004-7 by over half.
Another wealthy corporation, commercial property firm Land Equity
Group, has been given a rates remission, too.
Westfield can afford to pay. Last year this fabulously rich company
made a $6 billion profit, after tax.
Meanwhile, half the adults living in the Hutt struggle to pay rates and
get by on less than $540 a week, before tax. Many have to support
families on this as well.
Residents carry nearly two thirds of the City’s rates burden. Small
businesses outside the Central Business District pay most of the
remaining third.
Rich corporations get write-offs, but if we don’t pay all our rates on
time we’re slapped with penalties. Where’s the justice?
The Council says rates remissions like these are needed to attract big
corporations to the Hutt in order to create jobs.
But Westfield had already bought the land and was signing up tenants
for the new mall before the rates write-off was agreed.
It looked like they were coming anyway, and the rates remission was
just icing on the cake.
Westfield isn’t truly grateful for what it has received. Instead, this
greedy corporation is complaining about having to pay full rates from
next year and demanding more hand-outs.
We say, big corporations should pay their fair share. If the Council
can afford rates remissions, let’s start with the most needy
ratepayers.
If we’re elected, VAN – Valley Action Network will work for rates
justice by:
* Launching a petition demanding the Council scraps its policy of
“rates remission for economic development”, which gives wasteful
handouts to greedy corporations.
* Pushing for a new policy to give rates remissions based on proven
need, as recommended by the latest Local Government Rates Inquiry.
* Putting forward a vision of Hutt City as a Human City, which values
people over business interests.
ENDS