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Rising oil price drive rate increase

Rising oil price drives Greater Wellington rate increase for 2008/09

Oil price rises are the single biggest factor in a proposed rates increase discussed today by the Greater Wellington Regional Council.

The proposed rates increase for the 2008/09 financial year is 6.8%. Rising transport costs, in particular diesel to fuel the region's buses, account for 40% of the proposed rates rise. However, ratepayers will not pay for the entire transport cost increase, and the Regional Council will also be consulting with the public on a proposal to raise fares by about 10% on 1 September this year. This would be an average increase across the Metlink network, and would impact differently on different fare zones.

There is no increase proposed for the bulk water levy charged by Greater Wellington Regional Council to the four local authorities it supplies.

Proposed rate increase by activity %
Transport 3.4
Catchment management (flood protection) 1.2
Environment 0.7
Parks and forests 0.2
Investment management 0.8
Other 0.5
Total proposed rate increase 6.8

These proposed rate increases will impact differently on properties across the region's local authority areas, depending on what specific rates or charges are applied for local needs (e.g. flood protection) and also changes in capital value of properties.

Regional Councillors will consider the full proposed Annual Plan on 19 March and will then open a public submission process. Submissions will be heard on 21 and 22 May. Council is scheduled to approve the overall rates and levies for inclusion in the Annual Plan on 10 June, with the final Annual Plan approved on 30 June 2008.


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