Amenities-levy decision spurs call for law review

A Queen's Counsel has recommended a review of rules that have allowed an $11.6 million levy on ratepayers to help safety, arts and cultural groups.

In its first budget, the Auckland Regional Amenities Funding Board has set a levy for 2010-11 which is 29 per cent higher than the $9 million set by legislation for 2009-10. Next year, it could reach $15 million.

The board's levy recommendation was not approved by the electoral college, whose members are elected officials on Auckland's city and district councils.

The college wanted $500,000 lopped off in light of the recession and last month the dispute went to arbitration.

The arbitrator, retired High Court judge Peter Salmon QC, upheld the funding board's plan and assessment of requests for funding.

Mr Salmon found no evidence that the board had failed to apply the funding principles set out in the 2008 legislation.

However, the lawyer who argued the electoral college's case, Matthew Casey, QC, now urges it to amend the funding principles to ensure that consideration be given to the position of the region's ratepayers.

Otherwise, the legislation intends that up to 2 per cent of the region's rates will go to the amenities regardless of economic circumstances, or whether that is what ratepayers want.

Electoral college member and Manukau City councillor Jami-Lee Ross said the college must either insist on new funding principles or push for repeal of the Auckland Regional Amenities Funding Act.

"It should not be an act of Parliament that tells ratepayers what they can and cannot do with their money."

The electoral college appoints six members of the funding board and the 10 beneficiary amenities appoint the other four.

North Shore representative Lisa Whyte said funding principles must be amended to rein in the funding board.

"Times are tough ... do we need to be paying for expansion of services instead of just paying our share of existing services?" said Mrs Whyte.

Electoral college chairwoman Waitakere City councillor Vanessa Neeson said the college would consider Mr Casey's advice.

Regional Amenities Funding Board chairman Vern Walsh said it is reviewing its first funding plan as was always intended. "We are confident that we have been open and transparent in all our discussions."

He said the Super City legislation would be amended to have the board reporting to the Auckland Council rather than the electoral college.