Council plans no rate escape

The Auckland Regional Council is tightening the net on property owners who try to avoid paying their rates.

Yesterday it claimed success with its policy to lever payments by contacting home loan providers when there was more than $50 in arrears from previous years.

Demanding payment from the banks or other lenders had resulted in $2.27 million being collected on 8716 overdue accounts.

But council officers want a new process to put the squeeze on 1000 tardy payers who don't have mortgages and who owe a total of $1 million.

Finance general manager Brian Monk said the costs of pursuing payment through the courts could, in some cases, cost more than the amount owing.

Officers believed it would be uneconomic to pursue home owners' debts of less than $300.

Council chairman Mike Lee said it was a difficult matter. "We will have to do more of this sort of thing if Dr Michael Cullen has his way."

The Finance Minister told Mr Lee and Auckland's mayors last week that rates would need to increased higher than the proposed 5 per cent a year to pay for transport improvements.