Businesses face 63pc ARC rates rise

By WAYNE THOMPSON

One of Auckland's most tireless rates campaigners says residential ratepayers will have little sympathy for businesses which face increases of up to 63 per cent from the Auckland Regional Council.

David Thornton, of the Rates Rebellion Group, said businesses should not moan about the latest council policy changes, as their ability to pay was much higher.

The council trimmed its rates rise for the coming year from 3.2 per cent to 1.9 per cent by drawing on a $2 million windfall from this year's rates-related revenue.

But councillors, who face the polls in five months, seized on the surplus as a chance to reassure home owners that they had listened to the outcry over last year's 34 per cent rates hike.

Nevertheless, ratepayers will either be winners or losers due to other rating policy decisions.

The most dramatic changes come after a 7-6 vote for the overhaul of the controversial public transport rating policy and reintroduction of a business differential rate.

Chairwoman Gwen Bull opposed both changes, saying they would produce the large swings up or down that last year made people so upset.

Most business ratepayers will face increases of up to 63 per cent because they will pay one and a half times the residential rate.

A councillor who opposed the business differential, Michael Barnett, who is also head of the Auckland Chamber of Commerce, said it was an unjustifiable, vote-seeking, populist move that redistributed the burden of rates from home owners to business owners.

He said it was not true that businesses could afford to pay more.

However, Mr Thornton said the rates reduction for businesses last year created rises for residential ratepayers, and businesses did not pass on any benefit to customers.

"The proposed 1.5 differential for the coming year will provide only a minor swing back of the rates burden to the business sector."

In other changes, the move to bring Waiheke Island and Waiuku residents into a target transport rating area means a rates jump of 50 per cent, albeit over three years.

Mrs Bull said the new policy of basing transport rates on the level of bus or train services in each area reflected what people told the council was a fairer system.

Areas such as Kumeu, Riverhead and Maraetai-Beachlands will have their targeted rate halved in recognition of a low-level bus service.

Ian Bradley, who voted for both changes, said he switched from supporting the status quo to honour the council's promise to the public to listen. A "small" business differential was one of the limited choices available to comfort home owners.

Brian Smith said business rates dropped in Rodney last year, in one case from $1200 to $276, despite business placing greater strain on services than homes.

Mike Lee, who voted against the new transport policy, said a 50 per cent increase for Waiheke Island villages was bizarre. He disputed figures that guided council thinking in trying to recover the subsidy to the island's bus service.

Mr Lee said Transfund paid half the $258,000 annual subsidy and residents travelling to Auckland already paid a "congestion" tax through a levy on wharf use.

This cost $1.42 each per round trip and $7.14 per car.

Sandra Coney said most Waitakere residents would get a reduction of 15 to 25 per cent under the new transport rate tied to the level of service provided.

Ms Coney was disappointed a proposed $10 levy a ratepayer for buying new regional parks would not go ahead.

"We have only $200,000 in the parks fund, so hopefully some of the council's surplus can go to that."

Dianne Glenn said Waiuku had only one bus a day out of town, leaving at 6.10am.

An improved service, using mini buses, was now expected.

She said the new transport policy gave a fairer system over the region.

ARC RATES CHANGES

Rates rise averages 1.9 per cent over 460,000 properties (last year 34 per cent).

Public transport rate based on access to services in each area means higher bills for inner-city properties but reductions for Franklin, Manukau and Rodney.

Waiheke Island and Waiuku residents lose exemption from a targeted transport rate.

Residential ratepayers save at the expense of businesses.

Businesses to pay a differential rate of one and half times more than homes.

No $10 levy to buy more regional parks.

NEW TRANSPORT RATES POLICY

How they votedFor the change: Deputy chairman Philip Sherry, Ian Bradley, Bill Burrill, Sandra Coney, Dianne Glenn, Brian Smith, Paul Walbran.

Against change: Chairwoman Gwen Bull, Michael Barnett, Judith Bassett, Catherine Harland, Mike Lee, Craig Little.

NEW BUSINESS DIFFERENTIAL RATE

How they voted

For the differential: Ian Bradley, Bill Burrill, Sandra Coney, Dianne Glenn, Mike Lee, Brian Smith, Paul Walbran.

Against: Gwen Bull, Michael Barnett, Judith Bassett, Craig Little, Catherine Harland, Philip Sherry.