Editorial: Rates rise will be painful but council has few options

Mark Dawson, editor of Wanganui Chronicle

Whanganui's new wastewater treatment plant proved a surprise hit when an open day was held at the Airport Road facility last Sunday.

Bright and shiny, it attracted hundreds of sightseers, perhaps keen to check out where their rates were going.

Council could have cashed in on its curiosity value by selling tickets but that would have smacked of double dipping, and once up and running the city's latest tourist attraction will have a somewhat less appealing aroma.

Still, the new plant got a positive reaction, and council will be hoping that goodwill extends to the bill to cover its more than $40 million price tag.

That bill will come in the form of a rates demand which this year is set to rise by an average of 4.5 per cent, prior to public consultation. The wastewater treatment plant is responsible for a chunk of that increase.

Council indulged in a little kidology, first mooting a possible 12 per cent rise, thus making 4.5 per cent look comparatively generous. I think Fonterra play a similar game with their milksolids forecast.

Whatever, the fact remains rates are high in Whanganui and this year's rise will be tough for some to swallow. With residential rates set to go up 5.6 per cent, it will be particularly hard for the many home owners on fixed incomes.

Yet the council has limited options. We have a lot of aging infrastructure to be upgraded and maintained, and investment is needed to maintain the upward swing the district has enjoyed in recent years.

Some will argue against rates supporting such projects as the Sarjeant Gallery and velodrome; who want them set at a bare minimum and no investment for the future. But that strategy leads to the city slowly dying, and Whanganui has faced that particular abyss in the past.

Investment adds to the vibrancy of the city, attracts new residents, visitors and businesses and, ultimately, you get a positive return on your money.

But there is a case for looking at how councils are funded and how rates are calculated. Would a means test, based on people's ability to pay, be a better system than one based on property values?