New Zealand has copped one of the most aggressive rate hiking cycles in history - has it caused enough economic damage for the Reserve Bank to pause? Video / NZ Herald
Advocates for older people in Rotorua say the district’s average 8.8 per cent rates rise is “ridiculous” and will hit superannuants already struggling with high living costs hard.
The first payment instalment for 2023-24 is due on August 20 after Rotorua Lakes Council signed off the rates increase last month. It would add about $190 to the rates bill of a home valued at $755,000 and about $330 for a $1.32 million home.
The mayor says the council explored “every opportunity” to cut costs, and the rates rise is needed to fund safe and reliable infrastructure.
Age Concern Rotorua manager Rory O’Rourke said he viewed such a significant rates rise amid the cost of living crisis as “ridiculous”, and he was “not happy” about the added strain it could put on many retirees who had already been seeking help.
“It’s just become a bit ridiculous, really,” O’Rourke told the Rotorua Daily Post.
“They’re living off the superannuation, and with the cost of living crisis throughout the whole country – the council can’t throw in the rates rise as well as all the other things that are happening.
“We are seeing a lot of our members really struggling and coming in to see how we can help them as it is. There [are] some real sad cases out there at the moment.”
O’Rourke said elderly homeowners who had to pay life insurance in order to be granted a mortgage were already battling a “catch-22″ that he believed the rates rise would only make more difficult.
“I had a couple come in who were asking me about how they could change their life insurance, which is costing them $75 a fortnight on top of their mortgage, and now with the rates rise, it’s just going to make it unattainable for them because they have no other income apart from their superannuation.”
O’Rourke said although the rates rise would only directly affect homeowners, who made up just under half of Rotorua’s Age Concern members, he believed those renting would also be impacted in the long term.
Age Concern Rotorua manager Rory O'Rourke says the rates rise about to hit Rotorua is "ridiculous".
“Landlords can’t carry the extra rates, so they’ll have to offset it by putting their rentals up.”
O’Rourke was also concerned some senior community members’ voices may not have been heard during the council’s online survey process.
In his view: “Although the update of technology in that demographic has improved, there are a lot of over-65s who probably didn’t have the chance to say yay or nay to the rates rise.”
Rotorua residents also had opportunities to provide feedback on the council’s Annual Plan via email, phone, Facebook, written submissions at the council’s customer centre or in person at a consultation event.
Rotorua retiree Gerald Hanson said if he and his wife, who now live in a retirement community, still owned their home in Ngongotahā, “there would be a lot of money going out” each month.
Hanson said he believed the rise was “going to hit people very hard”.
“I would say with fuel prices going up as well and the food prices jumping, it’s going to be tough.
Grey Power Rotorua president Michelle Nahu said the rates rise had not come at a good time for anybody, but for the elderly, “it’s probably a worse time”.
“If you’re on a super, we all know that unless you’ve paid for your retirement, it’s not a very good time.
“It’s sad because they’ve worked all their lives. They’ve contributed to our community forever. They’ve retired, and now they’re living on a pension that’s not enough to meet their living costs.”
Grey Power Rotorua president Michelle Nahu.
Nahu said Grey Power Rotorua would be increasing its communications and other activities in the next year to engage with local pensioners.
“We want to know when they’re struggling,” Nahu said.
“Grey Power is about all the elderly in our community. You don’t have to be a member to reach out. Our office is open Tuesdays, Wednesdays and Thursdays. Just pop in and I’m sure one of our volunteers will be on-hand to help.”
Te Pāti Māori co-leader Debbie Ngarewa-Packer, who was in the Bay of Plenty this month as part of the party’s tour Te Ara Kōrero, said she believed the solutions to address the “growing poverty issue” for many elderly people were “there waiting to happen”.
“Our focus should be on taking GST off food so our elderly can afford to buy fish once a week, can afford to feed their grandchildren… are able to pay their rents and aren’t struggling to live amid a growing poverty issue.”
Ngarewa-Packer said many elderly in Aotearoa were “not always in the position” to keep up with rising costs.
Te Pāti Māori co-leader Debbie Ngarewa-Packer. Photo / Alex Cairns
“They’ve spent a lot of their lives volunteering, helping the community; they haven’t future-proofed themselves the way the super-wealthy have.
“We need to stay focused on ending poverty and redistributing wealth and keeping lives dignified for everyone’s elderly, everyone’s whānau.”
Rotorua Mayor Tania Tapsell said rates ensured Rotorua could run smoothly.
“Much of what we’re investing in is ensuring safe and reliable infrastructure for our community, which is a top priority for [the] council,” Tapsell told the Rotorua Daily Post.
“I made a commitment to stop the spend, and we have reduced rates from an expected increase of 11.95 per cent to 8.8 per cent. We also saved $3.8m with a further efficiencies target of $1.5m throughout the year.”
Tapsell said the council explored “every opportunity” to reduce costs and had given the community several proposals to consider.
“We had strong feedback that locals didn’t want to see some of the proposed cuts in areas like community funding, gardens, events and recreation.
“The final plan reflects that we listened to feedback and ensures we are delivering on what the community told us is important to them.”
A Rotorua Lakes Council spokesperson said the council encouraged people to get in contact if there were issues relating to rates payments.
“Their situation can be assessed, options can be discussed and arrangements agreed,” the spokesperson said.
“Some ratepayers may meet the criteria for a rebate through the Government’s rates rebate scheme.”
To discuss rebate eligibility, contact the council on 07 348 4199 to make an appointment.
Maryana Garcia is a regional reporter writing for the Rotorua Daily Post and the Bay of Plenty Times. She covers local issues, health and crime. Shania Callendar is an AUT journalism student.
