Affordable Auckland’s Rates Revamp

Affordable Auckland Mayoral & Albany candidate Stephen Berry has today announced a revamp of the ticket’s rates policy. “We have started the campaign with a commitment to keep rates increases below inflation. However with inflation levels at historic lows, the point is becoming somewhat academic.”

Latest inflation figures show that annual levels have fallen to just 0.1% in the December quarter, well below the Reserve Bank forecast of 0.4%. This has continued a downward trend, with inflation below the 1% mark for the last five quarters and at its lowest rate since 1999. Berry says, “In light of this trend, Affordable Auckland candidates believe it is credible to go into the next election pledging to freeze rates at their current level for the next three years.”

Mr. Berry says that this pledge is realistic because Affordable Auckland policy is to restrict Council spending to the core services required by the Local Government Act. “It doesn’t include corporate welfare. It doesn’t include educational lobbying and it certainly doesn’t compel the sponsorship of sports tournaments. If elected, Affordable Auckland candidates will stop paying for warm fuzzies and get on with concentrating on the essentials the city needs to function.”

The Local Government (Rating) Act stipulates how rates must be charged by Councils; as a percentage of annual value, capital value or land value. It also states that no more than 30% of council rates revenue can be raised by targeted rates or a uniform annual general charge. “Unfortunately, even if the council freezes the level that it charges on properties, growing property values can still see an increase in the amount Aucklanders are paying. While the Auckland market has temporarily slowed, the fundamentals causing rampant price increases have not been fixed. To truly control rates we need remove the council created market distortions which are artificially inflating Auckland house prices.”

Ends

© Scoop Media