Rural villages suffer as towns suck in rates benefit

The speedy creation of the Auckland Supercity led to cost blowouts and the erosion of local democracy, according to AUT's David Wilson. Photo / Kenny Rodger

Previous local government shake-ups have sucked rates from rural areas to subsidise nearby towns, experts say.

The most recent, the speedy creation of the Auckland Supercity, led to cost blowouts and the erosion of local democracy, according to AUT's David Wilson. But the impact on small communities could be even worse, he said.

In 1989, about 700 councils and special purpose bodies were amalgamated to create 86 local authorities. Waiuku council was one of those to disappear, subsumed into the Franklin District Council.

Former Waiuku mayor Kevan Lawrence said rates from his small village were ploughed into neighbouring Pukekohe.

"There was a feeling among the people that the outer regions didn't get their fair share. We believe it was spent in Pukekohe more than Waiuku or Tuakau or the outlying areas."

The benefits arrived for the small community, after 10 to 12 years.

Local government expert Dr Graham Bush said the 1989 reforms met resistance from local bodies, especially the smaller ones that faced takeover. "The local bodies claimed they were closer to the community [but] the other side of the story was that they were incapable of dealing with big issues."