Statement from David Thornton

Auckland Ratepayers Being Hit All Round For RWC 2011 And Other Costs.

Ratepayers in Auckland region face 10% rise in council rates and charges
Government must act to curtail local authority spending.

Before the gaggle of Auckland Mayors give their approval for ratepayers to carry the cost of the $40M + shortfall at Eden Park they should consider carefully what is happening to rates over the next few months as a result of the following;-.

• Already committed - ARC donation of $10M to the Stadium.

• Already committed - $55M to upgrade transport infrastructure around Eden Park.

• Already committed - at least $35M for events and festivities.

• Already paid – ARC $20M as half share for Queens Wharf purchase.

• Likely requirement – $80-$100M for Queens Wharf development.

And then ratepayers face -

• General rate increases form 1st July of about 5% or more.

• Increase in Water Rates

• Increased rate demand from Auckland Amenities Funders

• A rise in GST on rates of 2.5% [equals a 1% rate rise]

• Possible rates increases associated with Supercity.

The potential is for an average real rate increase of 10% for the 2010/2011 financial year.

Mayors, Councillors and the Auckland Transition Agency [who will make the final decisions on all this] should remember the dire warnings in the 2007 Rates Inquiry Report which said that council rates were becoming unaffordable for many groups of ratepayers.

The Report also said that rates should represent no more than 50% on council income – already many councils raise between 63% and 71% of income.

The Government must turn its immediate attention to finding a new way to fund local councils – and local councils need to cut costs and reduce expenditure, which includes the need to redefine the role and services provided by local councils.

Time is running out for many residential and small business ratepayers.

ends

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