8 May 2012

Media release

Mayor Pre-Judging Auckland Council’s Long-Term Plan Hearing Process – “Outrageous and Unacceptable”

Mayor Len Brown’s dictate today confirming that “business will pay the same proportion of rates as under the combined legacy councils and that rates differential will reduce over the next decade” is an outrageous and unacceptable abuse of the Auckland Council’s long-term plan hearings and deliberating process.

Michael Barnett, Auckland Chamber of Commerce head, was commenting on a Mayoral Press Release which also reaffirmed that government’s creation of Auckland council required a single rating system across the region.

What is the Mayor thinking? That the Chamber and many other submitters who made submissions on what the Council has agreed is the most difficult and controversial issue the new Council will grapple with did so just for fun and knowing it was a waste of time and effort?

“For Auckland’s sake, I hope not. Our contributions were made in the spirit and knowledge that the ultimate goal is, as Government has put into the Auckland legislation ‘a single rating system across the region,’ Mr Barnett responded. “I suggest he is abusing that task.”

So he is offering 11,000 businesses a reduction! Big deal:

What about the many thousands of other businesses who face increases?

What about the businesses that will be worse off than under the legacy councils even after the reduction of the business rate by 0.1% each year over the next 10 years?

What about the fairness of businesses paying 263% higher rates than residences for equivalent services and properties of the same capital value?

What about the huge historic inequities and unfairness in the old system that the Mayor is dictating be carried over that have businesses in Waitakere for example paying much high rates than equivalent properties just down the road?

A single rating system is required to be fair and equitable – and should require the business differential to be removed. Where is the deliberation and promise on that?

Reducing the differential by 0.1% per year will not offer relief alongside revaluations – it is a token gesture seen for what it is: a ploy to continue to treat Auckland’s businesses as Council’s cash cows.

Most of all, what has happened to the Mayor’s principles and promise to establish a business-friendly council? “As I told the hearings committee yesterday, in my language business friendly means:

Think business friendly in everything we do – constantly ask what Council do to support Auckland business and be easy to do business with.”

Today’s Mayoral statement is a step backwards for Auckland. More than ever before, for Auckland to solve its big issues and lift our game, an effective business-council collaboration is critical, and for that the adoption of a single rating system that is fair and equitable across the whole of Auckland is a key step to moving Auckland forward, concluded Mr Barnett.

ENDS

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