South Wairarapa wants rates paid

Bringing in debt collectors, and naming and shaming residents who do not pay their rates, were some of the ideas floated at the South Wairarapa District Council's policy and finance meeting last week.

Acting chief executive Paul Crimp said that, while the council was keen to do something about the $664,000 owed, it would instead go for a gentler approach.

Debt collectors would not be used at this stage to get people to cough up the money and publishing reports on properties with outstanding debts would not happen.

Councillor Solitaire Robertson said the council felt using debt collectors was not the best way to address the problem.

"Sometimes with a debt collection agency, they work at the problem for a time and, if this is not resolved, the problem comes back to council and the whole circle starts again, meanwhile the rates are still not getting paid."

She said the council encouraged voluntary repayment schemes and only in extreme cases would turn to mortgagors for money.

"While this is a last resort, council is a business and it is the other ratepayers in our district who are having to cover this shortfall in order for council to continue to provide the services expected by our ratepayers."

At a general council meeting last week, Councillor Julie Riddell said if rates were paid on time there would be no need to borrow money to upgrade the Martinborough Town Hall.

"We need to cherry pick the people that we allow to pay late," she said.

Mr Crimp said interest rates for borrowing were low at the moment but that might not always be the case.

"When interest rates increase, there's an incentive to get the money in."

He said an extra person would be employed at the council whose duties would involve collecting outstanding debts.

Councils have the power to take unpaid rates money from a person's mortgage under the Local Government (Rating) Act 2002.