Threats By Business Sector Leaders Will Alienatate The Public.

The burst of agonised screams from business lobby groups at the ARC's proposed business differential will not go down well with residential ratepayers who suffered as a result of last years huge rate increases.

A recent study of North Shore City has shown that the business sectors' 'ability to pay' is five times greater than residential ratepayers.

Other studies over the years by local government bodies have consistently shown that the business sector gains greater benefit from many rates-funded activities than other sectors.

All recent research into rating options shows that rates are a minor part of total business costs, whereas rates can be a substantial part of non-business [residential] ratepayers' after tax income.

Business clams that the proposed ARC differential policy means a 63% increase in regional rates are a distortion. Last year, when differentials were dropped, business ratepayers enjoyed a huge reduction in regional rates compared to the previous year when varying differential were applied by local councils which collected rates on behalf of the ARC.

That huge rates reduction for businesses last year created the massive hikes in regional rates demanded from residential ratepayers. ..more The proposed 1.5 differential for the coming year will provide only a minor swing back of the rates burden to the business sector.

For the business sector to threaten to pass on increased costs to customers is ridiculous when the benefits to business from last year's huge reductions were not passed on to customers.

The outrageous statements from some business lobbyists will lead to serious divisions within the community - pitting residential ratepayers against the bully boys of the business sector.

What is needed is a full and frank debate between the business sector and residential ratepayers to try to arrive at a fair and acceptable level of rates contribution from each sector

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