The proposed change to the way Hawke's Bay Regional Council collects its rates is concerning for homeowners and renters. Photo / Warren Buckland
The proposed change to the way Hawke's Bay Regional Council collects its rates is concerning for homeowners and renters. Photo / Warren Buckland
OPINION
Struggle Street is real. I see and hear about it every day from people living in all walks of life.
That’s why, at a time when you have to mortgage the house to go to the supermarket, and insurance costs are set to increase again, I’m finding it reallyhard to understand why the Hawke’s Bay Regional Council is even considering changes to the way it collects rates.
They are proposing to charge rates based on capital value rather than land value.
This will affect every homeowner and renter in Hawke’s Bay.
I understand HBRC has a huge job to do and they need money for that. However, they are already charging (in my rates) a $110 fee for regional cyclone recovery. Times that by every household in the regional council’s area and it would add up to a tidy sum. That’s fine. I’m happy to contribute to the cyclone recovery.
But here’s the thing. Ratepayers do not have money trees.
A talking point written by Hawke’s Bay Regional Council chairwoman Hinewai Ormsby, says capital value is seen to be more equitable and stable because those with more capital have more productive earning capacity, consume more resources and capital values fluctuate less than land value.
What does that even mean? Is she saying that the more your home is worth the more money you are capable of earning?
And how do people with higher capital values consume more resources? Do they drink more water, make more rubbish?
What about the pensioners who have worked their butts off to improve their homes so they can live a comfortable retirement.
How are they going to find more money for rates? The only way for people on fixed incomes is to cut back on food, power, insurance and unfortunately perhaps postpone going to the doctors or getting medication.
Ormsby also says twice in her talking point that “this policy will not change the total amount of revenue collected”.
Then why do it?
Some horticultural properties in the Hastings district are going to be hard hit with an expected increase of $485 per year.
Growers who in the past couple of years have endured hail, consistent rain and of course a cyclone. Crops wiped out!
The last thing they need is an increase in their rates.
Hawke’s Bay has always been known as the fruit bowl of New Zealand. It is fantastic to see some crops thriving at the moment. However, we all know there’s no celebrating until after harvest.
Linda Hall is assistant editor at Hawke's Bay Today. Photo / Warren Buckland.
Growers are struggling. If we are not careful they will throw their hands in the air and give up. Imagine what a loss to our region that would be.
All those people employed by them would likely move out of the region. Houses would be on the market and the next thing you know capital value drops and then what, HBRC?
In April last year, the average weekly rent in Hawke’s Bay was $625 according to TradeMe Property. No doubt many renters have faced or are facing increases since then. That’s a lot of money for anyone to find each week.
Homeowners have also had to fork out more as interest rates increased. Then of course we all know about the pain at the checkout. It really has been one burden after another for many in our region.
I also think that the submission deadline needs to be extended.
December and January are months when people have other things on their minds or are out of the region.
Please think carefully about putting any more financial burden on your ratepayers HBRC.
We need a break.
Linda Hall is a Hastings-based assistant editor for Hawke’s Bay Today, and has 30 years of experience in newsrooms. She writes regularly on arts and entertainment, lifestyle and hospitality, and pens a column.
