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All Councils Must Cut Non-Essential Spending

The campaign which lead the rates revolt against the 2003 ARC rate increases.

8 March 2005

ARC Rate Increase Slap In The Face For Ratepayers

All Councils Must Cut Non-Essential Spending

The proposed 4.8% rate increase by the Auckland Regional Council is another slap in the face for ratepayers who have already been warned of local council rate increase of up to 10%.

While the ARC rate increase may seem small in percentage terms the effect on individuals will vary widely. This is because rates are based on the possible sales price of property and ratepayers with higher value properties could easily face a 10% or higher increase.

The 4.8% increase proposed by the ARC is the increase in the total rates income collected by the ARC from across the region.

The miserly change in the business differntial, from 1.5 times the residential rate to 1.6 times that rate, will not bring any real relief to residential ratepayers who will once again bear the brunt of increased council expenditure.

Serious questions must be asked of the ARC and what it is doing with the income from the $1.3 billion regional assets handed back to it last year.

The ARC will also benefit from the 5c additional petrol tax which takes effect from April 1st.

Residential ratepayers simply cannot afford to keep paying ever-increasing council rates.

The time has come for a commitment by central and local government to find - as a matter of urgency - other methods of funding local government.

And until those new methods are in place all councils must cut expenditure to essential services only.

RatesRebellion website is www.ratesrebellion.org.nz

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