Tauranga businesses want to see evidence behind council's shock rates plan

Richard Drummond, managing director of The Lakes-based Kiwi Bus Builders Ltd. Photo/George Novak

Two Tauranga business owners say the council's proposed rates overhaul will cost them thousands.

Richard Drummond, managing director of The Lakes-based Kiwi Bus Builders Ltd, estimated the change would add another $11,000 to the $19,500 general rates portion of his last bill of $32,800.

"What I don't like is the broad concept that businesses can afford to pay," he said.

Export businesses like his, which had been around 25 years and employed 185 people in Tauranga, had to compete with manufacturers around the world, he said.

Extra costs could not just be passed on to the consumer if the business was to remain competitive.

Jaime Lunam, the general manager of produce label manufacturing company Jenkins Freshpac, wanted to see evidence that commercial properties cost the council more to service than residential properties.

"Is there an actual imbalance? Is it fair and reasonable that businesses should pay more?"

The cost to the 135-year-old business, which relocated to Tauranga from Auckland in 2013 and had 35 of its 55 staff based in Tauranga, would be "significant", especially on top of increasing wage and compliance costs.

He said even businesses that did not own commercial land would be affected because most commercial leases required the lessee to pay rates.

Port of Tauranga chief executive Mark Cairns said that with 190 hectares of land, the port was Tauranga's single largest ratepayer.

He was yet to see the detail of how a differential would impact the port's rates bill but the council had indicated it would consult with them directly.