Editorial: Creative thinking required

There may certainly be a case for more even distribution of rates revenue across businesses and residential property owners but this has to be balanced with incentives for growth.

While on the one hand the Rotorua District Council is establishing a new entity to focus on growth, on the other it's in danger of biting off its nose to spite its face by proposing a rates change some say will see the city lose big business.

Last week it was revealed via a submission to council from Rotorua-based Pukeroa Oruawhata Holdings, that the council's proposed rating change could see the city lose a potential $10 million business, one which would create up to 90 jobs.

That's a lot for a city struggling along with no population or economic growth to lose.

The local Chamber of Commerce has now laid a complaint with the Auditor General, slamming the council's proposed business rates differential scheme as unreasonable.

The chamber acknowledges there should be a fair allocation of rates but says the proposed increase - which it says averages out to 25 per cent - is unacceptable.

Chamber chief executive Roger Gordon has previously stated council's mandate to move to capital rating, to equal rates for properties of equal value with everyone treated the same, should mean exactly that.

Moving to a system that would prompt businesses to reconsider setting up shop in Rotorua seems counter-intuitive.

There has to be a compromise that satisfies expectations of fairness while also encouraging the growth our district so desperately needs.

Just as businesses must do, the council needs to think outside the box and come up with more innovative ways to increase revenue and boost economic growth.

WHAT DO YOU THINK?

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