ARC sparking rates bonfire: Clark

By ANNE BESTON

Prime Minister Helen Clark waded into Auckland's rates row yesterday, saying the rating methods used by the regional council had set off a "bonfire".

In a radio interview, the Prime Minister abandoned any attempt at appearing neutral on the rates issue, saying the system adopted by Auckland Regional Council was "biased against lower and modest-income people" and shifted the rates burden away from business on to residents.

"On top of that, they decided not to have any phasing-in of their new rate in position," she said.

"Now put the three together and you've got a bonfire."

The ARC is under siege from ratepayers over a 34 per cent rates hike that has seen households hit with increases of between 200 per cent and 600 per cent.

The council, which is billing Aucklanders direct for the first time when previously its rates appeared on local councils bills, has also attracted criticism for imposing a transport levy on areas with little or no public transport and doing away with a business "differential" whereby business pays double or more than residents pay.

Senior Labour ministers have been careful up to now to follow the Government line that central Government has no business in local body affairs.

But that changed late last week when Minister for Auckland Issues Judith Tizard told the Herald it was "ridiculous" the ARC had brought increases in "all at once", adding that as a "citizen" she "deeply disagreed" with the way the council had implemented its new rates.

Helen Clark yesterday supported her minister.

"I think (Ms Tizard) made it clear that she thought the ARC had made a number of mistakes in setting its rates, a view which I share," she said.

While Local Government Minister Chris Carter is trying to stay out of the controversy, sticking to the line he has limited powers to intervene, he did make a veiled criticism of the council yesterday.

A spokesman said on Mr Carter's behalf councils should try to take the community with them when making decisions and that had not occurred in this case for a "significant" number of ratepayers.

Meanwhile, the regional council has moved quickly to stem anger over its intention to hear key legal advice on its new rates system in secret.

The advice, from Auckland law firms Simpson Grierson and Bell Gully, was to have been debated behind closed doors, but chairwoman Gwen Bull said the meeting would now be open to the public.

She agreed to ratepayer group chairman and rates-fight leader David Thornton addressing the meeting. As well, a television screen outside the council chamber would mean people could see proceedings.

Citizens were invited to a cup of tea half an hour before the 2pm start to meet councillors.

Tomorrow's meeting

Auckland Regional Council's extraordinary 2pm meeting is at the council's Pitt St council chamber. The public can attend and a ratepayer delegation will speak.

A television screen may be set up outside the council chamber depending on how many people show up.

Ratepayer groups and the public are invited for a cup of tea at 1.30pm.

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