Rating proposal sounds Mahia costs-hike alarm

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

A statement by Wairoa Mayor Craig Little about the new rates proposal for the region has been described as “absolute nonsense” by Mahia ratepayer Bill Shortt.

“His statement ‘a courageous and controversial’ proposal on changes to the council’s revenue and financing policy will make the rating system ‘simpler, fairer and more equitable’ is absolute nonsense.”

Mr Shortt is also upset the council will not hold a meeting at Mahia — holding it at Nuhaka instead.

Mr Little said the council believed this to be a more central location for people.

Mr Little said the revenue and finance policy was out for consultation. It was a proposal and the council wanted feedback.

Wairoa District Council will be looking at its LTP this year and needs to start the process with the proposed revenue and finance policy now.

“We knew the proposed changes to this policy would be controversial,” Mr Little said.

‘We have a complicated rating system, and this is a proposal looking at simplifying it and making it more fairer and more equitable for the whole community of Wairoa. There are winners and losers.”

There was no devious plan to pull the wool over anyone’s eyes, or try to slip this under the radar — contrary to a lot of talk around town.

The council had extended the consultation period from January 22 through to February 9 to allay any concerns from residents that this process was being rushed through.

“We acknowledge the proposed changes to the current policy signalled some significant rates increases out at Mahia and in the rural areas but, interestingly, many properties in the Wairoa township saw a ‘proposed’ decrease in their rates under the proposed policy.

Mr Shortt says in the proposal, ratepayers in the rural sector, including the Mahia area, would be hammered with increases as high as 120 percent.

“I have viewed one increased by 54 percent and another 72 percent. Wairoa rates are among the most expensive in New Zealand based on capital values — homes are very cheap to buy but starting a business up, particularly one to employ a large number of employees, would be very difficult.

“The answer, according to the mayor, councillors and his newly-appointed chief financial officer, would be to put a proposal out to increase rural rates and decrease them for urban homes and Wairoa businesses.

“Businesses could look forward to reductions of 40 percent to 50 percent and would be very much the winners.”

Mr Shortt says he believes this is the thinking behind this “somewhat twisted rating proposal”, to hope for more people living in and starting a business in Wairoa.

Mr Little said it was up to the community to provide feedback to help decide.

“I can assure you this council will be listening and will make its decision based on what the community would like us to do.”