ARC seeks new ways to get cash

People could be charged to use Auckland's parks and gardens, and schools and hospitals could be hit with new rates bills, under sweeping proposals to help pay for more public transport for the city.

The moves are being considered by the Auckland Regional Council, as a way of addressing a $1.6 billion shortfall in funding.

In a move which one manager admits is a "new direction" for the ARC, the council is desperate to find extra money without another hugely unpopular rates hike.

Suggestions in a report to its finance committee include charging developers $5000 per dwelling in new subdivisions; rating government-owned land used by schools, universities and hospitals; and more charges for people for using regional parks.

Schools and universities are already baulking at the idea, which would require a law change.

And lobby groups opposed to the proposals warn that the public will ultimately end up paying anyway, through higher student fees and other price hikes.

Public consultation is already underway on the possible introduction of levies on marine farming and mooring berths. This would see about 5000 berths or moorings in the Auckland region charged an annual fee of about $340, as well as levies on aquaculture.

The council is also vowing to get tough on ratepayers who have outstanding rates bills, handing the debt over to banks to collect, and taking those without mortgages to court.

Its acting manager for public policy, Alan Johnson, said the council was "very concerned" about its spending plans, given that it received just $120 million a year from rates.

This might mean regional parks would have to pay their own way, allowing other money to go towards public transport.

Possibilities include levying commercial operators; expanding retail services at places like the Arataki Visitor Centre and the Botanic Gardens; providing more huts and lodges for rent; and charging some park users.

"Which is all a new direction for the ARC," said Mr Johnson.

The council is also hoping to persuade the Government to allow the rating of government-owned land, including universities, schools and hospitals.

The move is supported by several other councils, although Auckland was the only one facing such a funding crisis, said Mr Johnson.

Regional land transport committee chairman Joel Cayford said an extra $1.6 billion was crucial to help pay for $2.8 billion of public transport projects over the next 10 years.

Mr Cayford said although the Government was providing most of the money, it wanted most of it to go towards state highways, whereas the council was keen to expand rail.

Meanwhile, the council was mindful it could not continue to increase rates, he said.

"For example, if we have to extend the rail network to cater for a new subdivision, is it fair that all ratepayers share that cost? A substantial capital contribution of, say, $5000 per dwelling in a subdivision would go a long way to alleviating that burden."

Only city councils can charge such a fee in New Zealand, although such regional levies are charged in the United States and in Australia.

Auckland's Housing Lobby spokeswoman Sue Henry said the proposals were a concern.

"A lot of people's incomes have stagnated while all these rates and fees and levies keep rising."

She said despite the regional council introducing a separate rates bill in 2003 with charges based on land values, its list of new projects seemed endless.

"I find it outrageous that the ARC of all councils is getting outstanding rates bills added to the mortgage, especially when some people faced such huge bills just rebelled against paying all of it."

Educational organisations are also against any council attempts to rate their land.

Auckland University's finance director, Marin Matulovic, said the university would be forced to increase student fees if it had to pay regional rates on its 117 hectares.

Auckland Grammar headmaster John Morris said it would put even greater pressure on school budgets "which even now [are] way below what is required to run a decent school."

But Local Government New Zealand governance manager Mike Reid said it was unfair government organisations were exempt from rates that paid for infrastructure, and the organisation hoped to progress the issue "in the next few years".

"If this principle was accepted by government, it would be likely they would have to top up the different organisations affected by such a change."

- HERALD ON SUNDAY