Govt acts to curb Auckland rates rise

Aucklanders will be spared big swings in rates when the Super City comes into existence next year.

The Cabinet has acknowledged that moving from eight rating systems to a single one will produce huge rates increases and decreases.

So the new system will be phased in "to manage and smooth" these.

Rates will continue on the basis set by existing councils until July 2012.

Then the new Auckland Council will introduce a single rating system and have until 2015 to phase it in.

When the Auckland Regional Council tried to introduce a single rating system in 2003, rises of up to 467 per cent caused a rates revolt.

The rates system will be covered in the Government's third and final bill setting up the Super City for 1.4 million Aucklanders.

It is expected to be introduced to Parliament on December 15 or 16. It will go to a select committee for public submissions, and is due to be passed in May.

The bill will also allow a single water and wastewater pricing system to be introduced by a new council-owned company.

This task has been given to Watercare, which manages the region's wholesale water and wastewater services.

Because of the political sensitivities over water, any decisions on charging will be made by the Auckland Council in conjunction with Watercare.

The hot potato will be wastewater charges. A user-pays policy by Metrowater, owned by the present Auckland City Council, has resulted in water bills of more than $1000 a year for large families on low incomes.

Mayoral candidates and political tickets will need to have a clear policy on rates and water charges if they are to be taken seriously.

The third bill does little to flesh out the roles and responsibilities of the Super City's 19 local boards, despite an assurance from Local Government Minister Rodney Hide that they would have "real local authority".

Apart from the principle set out in the second bill that local matters will be left to local boards unless they are of regional importance, the day-to-day workings of the boards remain unclear.

So does the relationship between the boards and a regional transport agency, which will be responsible for such things as local roads and the siting of bus shelters.

The third bill also raises the electoral spending limit of $70,000 for mayoral candidates to $580,000 to contest the Super City mayoralty and from $3500 to $55,000 for council and local body candidates.

Mr Hide said a higher level was needed for candidates to "effectively engage" with a population three-and-a-half times bigger than the largest existing city, Auckland City.

Another feature of the bill is a plan to bundle up many council functions and run them as businesses at arm's length from the Auckland Council.

They are the transport agency, Watercare, a waterfront development agency, economic development, tourism and events, property holdings and development, regional facilities and investments such as shares in Auckland Airport and Ports of Auckland.