New rates system stays by one vote

By BERNARD ORSMAN

The Auckland Regional Council has decided by one vote to keep the system that angered ratepayers when rates rose by as much as 657 per cent last year.

The council yesterday voted 7-6 to accept chairwoman Gwen Bull's recommendation not to change the boundaries for the public transport rate.

Councillors, who face the polls in less than eight months, did not vote on options to introduce a business differential leading to lower rates for households.

A report by officers said changing the system would lead to large rates increases for businesses and the "business community has active and vocal representatives".

By sticking with the status quo, councillors "may be accused of not listening to those unhappy with existing policy" and "may need to explain why no change in policy", the report said.

Two councillors who voted in favour of the new rating system last year, Bill Burrill and Dianne Glenn, yesterday voted against it. Craig Little, who voted against, this time voted to keep it. Michael Barnett, who abstained from last year's vote on the grounds he had made a submission as chief executive of the Auckland Chamber of Commerce, voted for the status quo.

The decision goes forward to the draft annual plan.

It comes only days after the ARC sent out nearly 41,000 second reminder letters to tardy payers, threatening to "notify your mortgagee of the default and seek payment from them". The letter did not mention the ARC could not force recovery of the debt until November.

Councillor Brian Smith said the ARC had broken its promise to review the public transport rate.

The options included charging businesses one-and-a-half times the residential rate and changing the boundaries, or phasing in a new public transport rate over three years.

The business differential would save two-thirds of the region's 411,000 households between $5 and more than $500. Half of the 26,000 businesses would pay $100 or more.

Last year's decision sparked the ratepayer revolt because businesses got a rates cut at the expense of households.

Mr Little, who with Mr Barnett is a member of the pro-business Advancing Auckland ticket, last night denied the prospect of a differential changed his mind.

Mr Little said there had been confusion and it was best to stick with the status quo to keep the rating system as simple and clear as possible.

Mr Burrill and Dianne Glenn said they had changed their mind and voted against the status quo after listening to people and finding inequities.

Mrs Bull, who promised to work with the community on fairer rating, could not be reached for comment.

Councillors are not expected to recommend a rates rise until next month. The Herald understands extra Transfund money will allow the ARC to trim back a projected rise of 18 per cent to about 3 per cent.

How they voted

* For the status quo: Chairwoman Gwen Bull, deputy chairman Philip Sherry, Michael Barnett, Judith Bassett, Ian Bradley, Catherine Harland, Craig Little.

* Against the status quo: Bill Burrill, Sandra Coney, Dianne Glenn, Mike Lee, Brian Smith, Paul Walbran.