Grey Power on NZ First's mind as it considers bill to limit rates

Rodney Hide

In a softening of the stance articulated by its deputy leader last week, New Zealand First will not rule out this week voting for Rodney Hide's bill to cap rates rises.

New Zealand First has come under intense pressure from Grey Power to back the Act leader's bill, which is scheduled to face its first vote tomorrow. The bill would cap rates rises at the level of inflation plus 2 per cent in any year, and it has been drawn from the ballot at a time when Auckland home owners are reeling from a round of hefty rates increases.

Pensioners on fixed incomes - one of New Zealand First's core constituencies - have been hard hit as increases in their rates bills outstrip growth in their incomes.

New Zealand First deputy leader Peter Brown last week said his party would not vote for the bill, and was instead pursuing an independent commission of inquiry.

However, it is understood that the party has decided how to vote on the bill, and will discuss the matter at a caucus meeting today. New Zealand First's seven votes are crucial to the bill making it to a select committee.

United Future, the Maori Party and National have all pledged their support to Mr Hide for the first reading of the bill but that would not be enough without New Zealand First.

Mr Hide yesterday wrote a letter to New Zealand First leader Winston Peters, asking him to vote for the bill. He said Mr Peters voted for an identical bill in 2004. "By sending the bill to select committee, the public and local government would be given an opportunity to tell us their views," he said.

New Zealand First's concerns centre on whether anything could be achieved by sending the bill to a select committee. Although it acknowledges that the public would be able to make submissions about rates, the party is worried that the select committee would be too limited in its inquiry.

New Zealand First is still pursuing a commission of inquiry into how and why rates are levied. It is also arguing that other parties voting for Mr Hide's bill this week will not do so at its later readings, meaning it will never be law.

But Mr Hide remains "hopeful" of at least getting his bill to a select committee. "Mr Peters, ratepayers are feeling the pain of rate hikes now," he wrote. "We have an immediate opportunity to debate the funding of local government, through the select committee process - but only with your support."