Council in turmoil over rise of 17.4pc

New Papakura Mayor John Robertson's "bite the bullet" rates rise plan is pitting him against his deputy and long-serving councillors.

The council proposes a 17.4 per cent average rates rise in the draft annual plan and seeks public views by April 21.

This rise is the biggest to be flagged by the region's councils this year.

But it would fix up glaring flaws in the council's use of road subsidies and its quality of services, and help to cope with growth, said Mr Robertson, who is a former MP and chairman of Infrastructure Auckland.

But a breakaway faction of his council also seeks views on the rates rise.

About 40,000 postcards asking people whether they support the rise are being sent out by Deputy Mayor Katrina Piggott and councillors Nancy Hawks and Glenn Archibald, at their own expense.

The first mailbag of returned cards, said Mr Archibald, "shows people will not swallow 17.4 per cent".

He was worried about the ability of a community of 15,000 ratepayers to fork out an extra $3.4 million in rates.

The rates rebels, with more than 30 years' service between them, put out an alternative budget, which was rejected by the mayor and five other councillors.

Mrs Piggott was unable to say what the rates increase would be under the alternative budget, only that it would be cut significantly.

Mr Robertson said he found shortly after his election in October that the council was cushioning rates increases by using Transfund capital subsidies for operations and then borrowing the amount to build the roads.

Halting such accounting practices, which was not done by other Auckland councils, would account for 8.5 per cent of the coming year's rates rise.

Mrs Piggott said "fingers are pointing in the community" towards herself and other long-serving councillors over the Transfund subsidy use.

"But such practices were not known to anybody until September."

However, Mr Robertson said the council could lose its right to remain a standalone district council if it continued with imprudent financial practices and weighed itself down with debt.

Rises coming

Proposed council rates rises 2005-06:

* Auckland 9.7 per cent
* Manukau 2.5 per cent
* North Shore 6.99 per cent
* Papakura 17.4 per cent
* Rodney 6.9 per cent

Auckland Regional

* Council 4.8 per cent
* Franklin 6.6 per cent