Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Hamilton City planning to boost rates, and debt

Media Release Wednesday, June 6th, 2001

Hamilton City planning to boost rates, and debt

Hamilton City Council is planning to boost its rates by nearly double the inflation rate each year for the next three years, on top of debt that has doubled over the past three years, the Employers & Manufacturers Association pointed out in its submission on the Council's Draft Annual Plan today.

"What is of concern is that, in addition to Hamilton already having very high rates relative to elsewhere in New Zealand, businesses pay 2.2 times more in rates for equivalent property values than residences do," Alasdair Thompson, EMA's chief executive, told the Council hearing.

"Hamilton's residential ratepayers represent 90 per cent of property owners and hold 75 per cent of the city's land value yet pay just 66 per cent of it's the city's income from rates.

"The average residential property owner pays $1673 in rates for every $100,000 of land value.

"Businesses pay over twice as much; $3663 for every $100,000 of land value. They pay 31 per cent of the Council's income from rates though representing only eight per cent of property owners with 16 per cent of the land value. "The 500 businesses in Hamilton that are members of EMA employ nearly 18,000 people and provide 35 per cent of the total jobs in the city, with a pay roll in aggregate of $680 million a year.

"Council mistakenly presumes businesses can better afford to pay rates - this is not the case. The differential against business acts as a disincentive for businesses to locate in Hamilton and employ more people.



"Hamilton City Council is tying up rate payers' equity in assets of Council's choosing and control at a significant opportunity cost in jobs and growth for businesses and residents of the city.

"In its submission EMA recommended the Hamilton Council should use Uniform Annual General Charges (UAGC's) far more, that it should remove the term 'tax benefit adjustment for commercial/industrial' from its plan as it used incorrectly, and should sell non-core assets and get out of non-core activities."

Further comment: Alasdair Thompson tel 09 367 0911 (b) 09 303 3951 (h) 025 982 024


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Sir Michael Cullen’s Tax Reform

To ordinary wage and salary earners who (a) watch a slice of their gross income being taxed every week via PAYE and who also (b) pay GST on every single thing they buy, there has been something quite surreal about the centre-right’s angry and anguished reactions to the Tax Working Group’s final report... More>>

 
 

89 Cents An Hour: Govt Plans Fix For Minimum Wage For People With Disabilities

IHC is delighted that the Government is looking into replacing the Minimum Wage Exemption (MWE) with a wage supplement to ensure people with disabilities are paid at least the minimum wage. More>>

ALSO:

Te Waihanga: New Independent Commission To Tackle Infrastructure Issues

The New Zealand Infrastructure Commission – Te Waihanga – will be established as an Autonomous Crown Entity to carry out two broad functions – strategy and planning and procurement and delivery support. More>>

ALSO:

Auckland Action Against Poverty: Motels Profit From Housing Crisis

A single motel which charges up to $1,500 per week per room has received over $3 million worth of Government funds to provide emergency assistance, despite never having a Code Compliance Certificate – an offence under the Building Act – and receiving a series of longstanding complaints from occupants... More>>

ALSO:

Gordon Campbell: On The Alleged China Relations Crisis

If New Zealand’s relations with China are ‘deteriorating’ then you still need a microscope to detect the signs... More>>

ALSO:

Environment: Government To End Tenure Review

“Tenure review has resulted in parcels of land being added to the conservation estate, but it has also resulted in more intensive farming and subdivision on the 353,000 ha of land which has been freeholded. This contributed to major landscape change and loss of habitat for native plants and animals,” said Eugenie Sage. More>>

ALSO:

Bell Tolls: Big Changes, Grand Mergers Planned For Vocational Training

“At a time when we’re facing critical skill shortages, too many of our polytechnics and institutes of technology are going broke... More>>

ALSO:

Sallies' State Of The Nation: Progress Stalled In Reducing Inequality

The report shows a lack of tangible progress in key areas including record levels of household debt and a growing gap in educational achievement between poorer and more well off communities. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels