Ratepayers to cough up extra $2m

By WAYNE THOMPSON

An Auckland Regional councillor says the council stands to gain $2 million from penalties for overdue payment of its controversial new rates.

Councillor Brian Smith said he was concerned at how many people were withholding payment as a protest, or because they could not find the money.

They were creating a potential windfall of more than $2 million for the council in penalty payments, going by figures in an ARC progress report on collection of 460,000 rates demands.

He said that in the Rodney, North Shore and Waitakere areas, which had earlier due dates for payment, about two out of 10 rates bills were outstanding. This was twice the number that defaulted on their local council rates each year, he said.

But people would find their local councils more sympathetic towards allowing time to pay before the 10 per cent penalty kicked in.

Mr Smith said the ARC system meant slow payers were automatically slugged the 10 per cent penalty from the due date and a further 10 per cent if the bill was not paid six months later.

The council knew it would get the money eventually and cover the shortfall with a loan at a much cheaper rate than the penalty.

Mr Smith said the council rejected his plea for an amnesty for overdue payers.

This could be done by changing the system of having different rates-payment deadlines for various postal codes in the region to allow the same penalty dates of September 16 for all areas.

The council's rates committee special meeting last Thursday voted six to four against the amnesty and extension of deadline.

The council says it has so far collected 58 per cent of regional rates, or $63,773,000.

But Rates Rebellion leader David Thornton said yesterday that almost one in three Aucklanders were in default on their rates payments due on August 18, and this disproved a claim by its chairwoman, Gwen Bull, that the rates revolt was over.

Mr Thornton said 24 per cent of the rates in the first two areas had not been collected by the due date.

This meant about 78,400 ratepayers had not paid up.

But ARC spokesman Ken Dyer said the council could not give figures for how many ratepayers were in default until Friday, because of the time needed to process the huge number of rates invoices and payments coming in.

Mr Thornton said Rates Rebellion was in favour of the council's decision on Monday to form a "ratepayer support team" to help struggling ratepayers apply for a special arrangement for rates relief.

"But what sort of council is it that sets its rates so unfairly that it needs to set up special teams to help those it has deliberately disadvantaged?" asked Mr Thornton.

A council staff report said the team would cost about $250,000. Penalty income could potentially be used to pay for this.

Slow payers

* In the Rodney area, ARC figures show that 21 per cent of rates, or $1.25 million, was unpaid after the due date of August 6.

* This meant a windfall for the ARC of $125,000 in penalty payments, which Rodney slow payers would have to meet or risk having the council sell their homes to recover the debt.

* The council stands to gain a $2 million windfall from all penalties.

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