Angry funding debate splits council

Under a $2 toll scheme, households face an average of $345 a year to use motorways, but up to $1580 for those with heavy transport needs.

Mayor backs down over big-hit rates rises while referendum on how to pay for transport projects ruled out.

The Auckland Council is at odds over how to implement hefty rates increases and plans for motorway tolls.

At an acrimonious council meeting yesterday, Mayor Len Brown and councillors could not agree on the best way to handle rates rises and give Aucklanders a say on tolls or a fuel tax to plug a $12 billion transport funding gap.

Some councillors want measures to soften the impact of the rates rises. Others, including Mr Brown, want to go "cold turkey", introducing the increases in one hit next year to complete the changeover to a unified rates system.

Councillors also disagree over a referendum about tolls or a fuel tax and higher rates as alternative funding sources for transport projects.

Several councillors want a referendum. But a majority prevailed by 12 votes to nine to consult on the issue in a new 10-year budget. A referendum could be held once budget feedback is in.

Some households could end up paying more in tolls than in rates, said councillor Wayne Walker in support of a pro-referendum pact between left-wing Cathy Casey and conservative George Wood.

Under a $2 toll scheme, households face an average of $345 a year to use motorways, but up to $1580 for those with heavy transport needs.

Mr Brown led the charge to consult on the alternative transport funding options as part of the new 10-year budget, a process councillor Chris Darby said required robust feedback, not a "tick box" conversation.

The mayor has proposed a 3.5 per overall rates increase, breaking an election promise to hold rates at 2.5 per cent this term.

New property valuations and business rates changes have driven the average household increase to 5.6 per cent. For 126,000 households the increase is more than 10 per cent, and more than 40 per cent for 3738 households. Rates for about 160,000 households, mostly in the west and rural areas, will drop.

The mayor backed down on big rises in one hit and agreed to more options for public consultation. These could see increases capped at 10 per cent or 20 per cent for next year only, and require Mr Brown to seek permission from the Government.

What's happening with rates and tolls
•Several options put forward for rates rises.

•They include introducing big rates rises in one hit or capping increases.

•Ratepayers will also be consulted on tolls and a regional fuel tax/higher rates for transport spending.

•Referendum ruled out for now, but could be held after feedback.