Back to basics for councillors

By WAYNE THOMPSON

The beleaguered Auckland Regional Council is rethinking the way it communicates with ratepayers after learning harsh lessons from this year's rates rise rumpus.

ARC councillors yesterday agreed they needed to review the council's unsuccessful $376,000 campaign to sell the controversial new rating system.

But opponents of the rating system were indignant that a suggested review group consisted of five councillors who had originally supported the increase.

Sandra Coney demanded a place on the group, saying the five councillors selected were all supporters of the increase yet the council was divided.

Brian Smith argued for the group to be open to all councillors because all of them had experienced abuse over the "rates debacle" and all had learned lessons.

Mike Lee said the chosen group had shown themselves as hardliners and inflexible in regards to the rates. If they were the only ones on a group that was supposed to improve communications ahead of next year's rates plan then "it could be a PR disaster".

Finally, group member and council deputy chairman Philip Sherry asked for the names to be withdrawn, saying "nothing sinister" was intended.

The group was mooted in a staff report yesterday which says publicity about this year's project to introduce direct rating drew attention to how the council communicates with the community.

"It is important that the council learns from the rates project and takes advantage of the opportunity provided by the raised awareness generated to build a public understanding of the role and activities of the ARC."

Councillors grasped hold of this as one positive aspect arising out of their trouble this winter to persuade more than 400,000 ratepayers they should pay more to improve public transport.

The council also dropped the differential system used by Auckland's local councils, which charges businesses at a higher rate than households. This meant its advertised "34 per cent" overall increase became a jump of 200 per cent or more for many Auckland home owners.

ARC figures supplied yesterday show 16.6 per cent of 18,207 ratepayers in North Shore and Rodney have not paid their rates and will receive 10 per cent penalties.

North Shore ARC member Ian Bradley said attempts to sell the rates rise failed because "no one was interested until the bills came".

Rodney member Brian Smith said a fatal flaw was the ARC communications saying rates would rise by 34 per cent.

"There was an expectation of a 34 per cent increase generally.

"People complained when they opened the envelope and found their rates had gone up 200 per cent. I have to try to explain that."

What went wrong:


So where did the ARC go wrong in its attempt to sell a big rates increase? The Herald asked two public relations experts for their views.

ALLAN BOTICA: senior counsel with public relations firm Botica, Butler and Raudon, says the council made three mistakes.

It "let the story get away from it", he said. It had ample time to prepare for an issue that it must have known would get under people's skin.

"Once anger, heat and hardship entered the frame, they didn't stand a chance. The council appeared dumbfounded by it."

Mr Botica said news reports showed councillors consistently failed to listen, underestimated the impact on individual ratepayers and were slow to respond.

"The whole thing was surrounded by a fortress imagery that suggests arrogance."

The council also failed to identify a support base and instead drew criticism from mayors, the governor of the Reserve Bank, cabinet ministers and the Prime Minister.

TIM MARSHALL: President of the Public Relations Institute, said the council was unable to explain what the impact of the new rates system would be.

"Somebody made the suggestion that the ARC should have sent out proforma rates invoices. That would have brought it home to people ... and got some serious and meaningful consultation going."

Mr Marshall said more people were now aware of the ARC and it had an opportunity to tell people what it did and how it added value to the community.


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