Brian Rudman: Increasing ratepayers' burden typical tactic

Launching his aborted Auckland City mayoral bid eight months ago, City Vision leader, Dr Bruce Hucker, standing as an independent, promised to keep rate rises to no more than 2 per cent above inflation. His rival, Dick Hubbard refused to commit himself.

Last week, Mayor Hubbard, his deputy and one-time rival, Dr Hucker and their City Vision-Labour majority, joined to announce plans for a 9.7 per cent rates rise overall, including an average 11 per cent rise for residents. Inflation is currently running at 2.7 per cent.

Their rightwing Citizens and Ratepayers Now opponents are thundering abuse. But they were no better when they were in power.

They were elected in 2001 on a promise to freeze rates. But over their three-year term they ramped up the charges on poorest households by 37 per cent. Rates for the wealthiest households went up only 4.3 per cent.

No wonder the majority of people don't bother to even vote. Not that one should be too hard on local body politicians. They have an impossible task trying to perform the tasks they're required by law and by popular demand to carry out, using a funding method inherited from feudal times.

The antiquated property rating system is unfair and inadequate and should have been abolished or supplemented by other forms of funding, years ago.

It was a point made by Waitakere Mayor Bob Harvey on Friday after chairing a meeting of metropolitan mayors gathered in Wellington to discuss this very issue.

"We simply cannot survive on rates alone. There needs to be a fairer and more cost-effective system for funding local government."

Mr Harvey said relentless expenditure pressure was coming from sources such as population growth, the devolution of functions to local government from central government, growing community expectations and new local government functions and services.

"For example, central Government passed the Prostitution Reform Bill but it is local government that has to conduct the inspections, deal with complaints and implement and police the changes."

It's hardly a new message. In August 2002, lobby group Local Government New Zealand greeted incoming local government minister Chris Carter with a paper on this "long-standing grievance". Despite a $5.7 billion central Government surplus, no relief - or solution - is in sight.

Back in Auckland City, the planned rate rise has caused ructions between City Vision-Labour and their minority coalition partners, the Action Hobson team of Christine Caughey and Richard Simpson.

No sooner had the proposed budget been announced than Action Hobson said they would oppose "every aspect of the City Vision/Labour rates-hike" claiming it's "more about socking it to the perceived rich than about getting Auckland moving again".

As representatives of the "perceived rich" of waterfront Orakei, the two tenderfoot politicians were obviously worried about their long-term political careers. But their unexpected abuse infuriated their leftwing friends, who had, after all, recently installed them into the chairmanships of two key committees, heritage and transport, both areas which will benefit from the extra rates to be levied.

One said if Mr Simpson was so concerned about saving money, why was he calling for urgent reports on an expensive, and hardly high-priority hobbyhorse of his own, a footbridge across Waipapa Stream from Parnell to the Domain.

The proposed rate increase will bring in an additional $60 million over three years which will go towards $42 million on transport projects, $8.4 million on open spaces, including a pittance on preserving volcanic cones, and another $4.2 million on urban design and heritage preservation.

Mr Simpson said that instead of higher rates, council should be considering CBD congestion charges, hotel bed fees, rating Ports of Auckland, retaining GST on rates and persuading central Government to hand over more tax revenue.

To his more experienced colleagues, this was like telling grandma how to suck eggs. For years they've been batting these options back and forth with bureaucrats and the parliamentarians who have the final say, with no luck.

With parliamentary elections looming, maybe it's time we all starting leaping up and down and demanding funding reform for local government. A good start would be to get the right to levy a rate on Crown-owned land - to say nothing of the Ports of Auckland's vast downtown commercial estate.