Mayors plead for big ARC rates rise

Dick Hubbard

Auckland's two biggest cities are pleading for a steeper regional rates rise, to close a serious public transport funding gap.

Auckland and Manukau are urging the Auckland Regional Council to raise its rates by more than an average 4.9 per cent, citing a feared $710 million to $1.6 billion funding shortfall over 10 years in a $4.9 billion public transport shopping list.

But Auckland City Mayor Dick Hubbard's submission late yesterday calling for regional and local councils to present a united front on rates drew a fiery response from regional council chairman Mike Lee.

"This Auckland Regional Council will no longer provide alibis for local councils to strike high rates increases," he told the mayor in front of a hearings panel of regional councillors.

Councillor Bill Burrill said that without more funding from the Government or elsewhere, it would take rates rises of 17 per cent for each of 10 years to fill the gap.

Mr Hubbard had expressed concern that the regional council's portrayal of a 4.9 per cent rise as the highest acceptable would make the public less tolerant of higher local authority increases.

A planned presentation by Manukau Mayor Sir Barry Curtis to the regional council was postponed until tomorrow, but he told the Herald before Mr Hubbard's ordeal that he would make a similar call against what he viewed as an artificially low rates rise.

Sir Barry said Manukau City was concerned the regional council was not providing enough money to its Auckland Regional Transport Authority subsidiary "to develop the integrated public transport system envisaged in the Regional Land Transport Strategy".

His council is worried there will not be enough money to run trains along a $55 million to $70 million branch line to central Manukau, which the Government intends building as part of a core upgrade of the regional network.

The cities are effectively siding with Finance Minister Michael Cullen, who at a confidential Beehive meeting with the Auckland Mayoral Forum a fortnight ago scoffed at the regional council's plan to limit rates rises to about 5 per cent a year for 10 years.

But Mr Lee said the ARC, which lost several members after a ratepayers' revolt against a 34 per cent rates rise in 2003, was painfully aware of continuing public anxiety about ever-increasing imposts, particularly among those on fixed incomes.

He said he regretted the earlier rise, which ended the tenures of chairwoman Gwen Bull and chief executive Jo Brosnahan.

Mr Hubbard said his council had won public support last year for allocating more than half of a 9.7 per cent rates rise to transport, and might this year end up with an increase "significantly" above 5 per cent.

Establishing a clear link between rates and transport spending had been crucial to public acceptance and it was important to make it easier for the Government to give more funding support by showing that Auckland was willing to help itself.

"The ARC and territorial local authorities should stand shoulder to shoulder on this," he said.

Mr Lee said his council put great store in its relationship with Auckland City, but he was disappointed that body had chosen to break a "taboo" against putting pressure on other local authorities to spend more ratepayers' money.

"I think it would be more important not to worry about impressing Wellington and remember that we represent Auckland," he said.

Mr Lee said there was no point arguing about the level of transport funding until there was agreement with the Government on what it should be spent on.

Mr Hubbard defended the submission as a legitimate contribution to the region's community planning.

He said it was not intended as criticism, and he invited Mr Lee to the town hall to give a robust view of his own council's budget documents.

Sir Barry said Auckland needed to show an "exceedingly generous" Government it was prepared to do more to help itself, but broke ranks with Mr Hubbard over including electric trains in the rail upgrade.

He said these were "causing some anger at Government level".

But Mr Hubbard said electric trains were important to Auckland City because of its need to intensify development around rail corridors without diesel fumes and noise.