Dairy firm shows way - Brewer

Cameron Brewer slams the rates hike at the public meeting last night. Photo / Brett Phibbs

Councillor says Auckland Council should follow Fonterra and slash head office spending.

Auckland Council should follow the lead of Fonterra, which is laying off hundreds of staff in response to low dairy prices, says Orakei councillor Cameron Brewer.

The right-winger joined speakers on the left in condemning an average rates increase of 9.9 per cent for households at a public meeting at the Mt Eden War Memorial Hall last night.

The meeting was called after the council voted 15-7 last month for a general rates increase of 2.5 per cent and a 4.4 per cent targeted rate to top up spending on transport.

New valuations and a plan to lower business rates mean the average household rates increase is 9.9 per cent.

Hinurewa Te Hau, of the Maori Party, said Auckland Mayor Len Brown made a promise to keep rates at 2.5 per cent.

"That has gone out the door. This will have an impact on our poorer communities," Ms Te Hau told the audience of about 60 people.

Mr Brewer said the council should find the extra $60 million for transport infrastructure from within its $3.5 billion operating budget.

Fonterra, he said, was looking within its head office "and that's what we need to do".

Act leader and Epsom MP David Seymour sympathised with the council for having to tackle an infrastructure deficit built up over decades and red tape imposed on councils by central government, but said the bigger issue was a question of priorities.

"When we have got the mayor in Los Angeles tonight trying to be a global dealmaker with businessmen, is that the role of local government?" Mr Seymour said.

Mr Brown, accompanied by councillors Bill Cashmore and Denise Krum, is leading a delegation representing 43 Auckland businesses taking part in the Tripartite Economic Alliance Summit in Los Angeles. He is also to attend a mayoral forum in New York.

Grey Power Auckland zone director Bill Rayner said the transport and general rates package was taking 75 per cent of superannuitants' cost-of-living adjustment, leaving $95 a year to cover all their other cost increases, including rising water bills.