Greymouth struggles with land rent rises

Greymouth's mayor is pleading for leniency as his community faces crippling land rent rises.

Maori landowner Mawhera Incorporation owns virtually all of Greymouth's CBD and a large chunk of residential property.

It is reviewing rental rates after charging homeowners and businesses peppercorn rent for years.

The move to market rates means that despite owning the buildings, many people now face increases of up to 500 per cent for rates on the land the buildings stand on.

Greymouth mayor Tony Kokshoorn says all businesses are facing a steep increase but the Victoria Park Racecourse could be the worst affected, with a rent rise of $35,000 to $50,000.

He says that is unsustainable and the racing club has to look at merging with the galloping club.

Mr Kokshoorn says most businesses are facing a similar dilemma.

Mr Kokshoorn is hoping to arrange a meeting with Mawhera soon to urge it to let residents and businesses freehold the land.

- NEWSTALK ZB