Refinery fighting proposed rates hike plan

The Marsden Point oil refinery operator is fighting a proposed 750 per cent council rates rise for its petroleum products pipeline which runs under Waitakere City.

The New Zealand Refining Company says the council is threatening to hike the 2006-07 rates from the present $11,412 to $86,700.

"We think it will be hard for them to justify for a pipe that just lies in the ground," said company secretary Dennis Martin.

The pipeline runs for 170km through the territories of seven councils from the refinery south of Whangarei to the tank farm terminal at Wiri, in Manukau City.

But Mr Martin said Waitakere was the only one to flag such a hefty rise because it was considering changing its basis of rating from land value to capital value.

The company told Waitakere councillors that this would be unfair and unreasonable.

Rates should fairly apportion the council's costs between ratepayers based on the use of council services, said the company.

This pipeline did not directly supply the city's residents like gas, electricity and telecommunications companies did and it did not use council's services.

Mr Martin said unlike the power companies, the refinery was unable to pass on increased costs to its customers. Shipping rates for the fuel passed down the pipeline were fixed by agreement based on international pricing. "But regardless, anyone suffering a 750 per cent price rise would query," he said.

The refinery's income comes from oil marketing companies Shell, BP, Caltex and Mobil, who also own it.

Other utility network companies and shopping centre owners are also appealing for the council to drop the idea of changing to capital value.

A decision will be made this month on which system to use and a proposed rates rise of 6.85 per cent.