Businesses in west wild about rates

More than 130 businesses in West Auckland are demanding rates relief from the Auckland Council. File photo / Kenny Rodger

More than 130 businesses in West Auckland are demanding rates relief from the Auckland Council, saying they pay up to 40 per cent more than other commercial areas in the region.

They say the proposed average rates rise of 4.9 per cent for 2011-12 will throw their contribution to the region's expenses further out of kilter.

National MP Tau Henare said yesterday he backed the plea for rates remission for West Auckland businesses from Central Park Drive, The Concourse, Te Atatu Peninsula and around the former Waitakere City.

"I have to say somebody's getting ripped off," he said. "It's a lot of money for mostly small and medium sized businesses."

Mr Henare said West Auckland businesses were "under the cosh" and should not subsidise others.

"I demand there is relief right now ... either drop the rates rise or regularise things so we have the same businesses the same size paying the same rates."

Harmony Homes managing director Brent Morman compared rates for businesses and found the average rate for a Henderson business was 44.6 per cent higher than for a business on similar value land in Rosebank Rd, in the former Auckland City area.

Similar businesses in former North Shore City paid 41 per cent less and in Manukau 49 per cent less.

"It would be unjust to force on to West Auckland businesses the proposed increase, given this would also be levied on top of the excessive level of rates already paid."

Henderson lawyer Bruce Johnson said the former Waitakere City Council had a small proportion of business ratepayers to bear the burden of paying for large projects such as the $39 million civic centre.

"But now we are in the Super City we look at our competing businesses and see we are paying significantly more."

Helen Bench, of Glendene paint manufacturer Special Finishes, said the company was forced to scrap its plans to build a new factory in Henderson when rates on the site went from $19,000 to $60,000 in one year.

And a Henderson engineering firm's rates bill went from $11,337 to $21,929 in the past four years.

Today, the Auckland Council begins hearing region-wide submissions on its draft annual plan before deciding its budget on June 28.

LEVY VARIATIONS
2010 average business rates comparison (Rates per $1000 rateable land value):

Waitakere $19.42
Auckland City $17.41
North Shore $11.42
Manukau $10.80