Mayoral contenders tight lipped on rates hike

Len Brown believes a form of uniform charge is a fair way to deal with the extremes of wealth across Auckland. Photo / Janna Dixon

John Banks and Len Brown are giving little away about how they will deal with massive rates hikes when it comes to introducing a single rating system for the Super City.

Manukau, Papakura, North Shore, Waitakere and rural ratepayers are likely to be the hardest hit, with rates increases of 100 per cent or more a real possibility.

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

Under the Super City, the mayor and Auckland Council will have three years to introduce a single rating system from 2012.

Households and businesses will pay rates the same way they currently do until 2012.

Because the existing eight councils have different rating systems, moving to a single rating system will create "winners" and "losers".

The biggest group of winners are expected to be Auckland City ratepayers, who currently have the highest overall rates in the region. They will benefit most from any efficiency and cost savings under the Super City.

Manukau and Papakura, with the lowest rates in the region, are likely to be the biggest losers, followed by North Shore, Waitakere and rural ratepayers from Franklin and Rodney.

Mr Banks and Mr Brown have acknowledged that moving to a single rating system will be a challenge, but have been quiet about how they will deal with the looming problem. Instead, they have focused on their records on rates and water prices.

Yesterday, Mr Brown was the first out of blocks with an announcement that he would set rates on property value with a "small" uniform charge of between $200 and $350.

In broad terms, a small uniform charge benefits low- and medium-value properties and a high uniform charge benefits high-value properties.

Mr Brown, a Labour Party member, finds himself at odds with the left-leaning City Vision ticket, which wants to abolish uniform charges. City Vision leader Richard Northey said the ticket was not quite on "all fours" with Mr Brown on the issue but pretty close.

Mr Brown believed a form of uniform charge was a fair way to deal with the extremes of wealth across Auckland, saying he planned to front public meetings to deal with the transition.

He also supported a single business differential to create fairness and simplicity for business across the region.

Last night, Mr Banks said moving to a single rating system was going to be the most defining piece of policy for the first council, but he did not have the wit or time to develop a policy.

He planned to establish a working group of experts and consult Aucklanders to find a rating system with maximum equity and fairness.

Mr Banks has said he would set rates on property value with a "medium-sized" uniform charge.

North Shore Mayor Andrew Williams, another mayoral contender, has suggested a uniform charge of between $200 and $300 and using the lead-up time to 2012 to work on a number of scenarios.