Media statement Monday, July 2nd, 2012

Rotorua Council must reconsider alarming rates rises

The Employers and Manufacturers Association is alarmed at the levels of rates increases being imposed by the Rotorua City Council.

EMA’s chief executive Kim Campbell notes that 30 Rotorua businesses will see their rates double this year with nearly 200 facing rates hikes in excess of 25 per cent.

“This is unacceptable,” he said.

“It could well put jobs at risk.

“It seems very strange indeed that at a time when the Rotorua Council needs to attract investment it is acting so business unfriendly.

“The Council needs to review its rates right away, spread the increases over at least three years and cap them at no more than 10 per cent a year.

“While we strongly support the Council’s change to capital value rating from land based value, changes of this magnitude should not ride roughshod over ratepayers’ ability to pay; they must be managed so rate payers can accept and afford them.

“The scale of the unexpected extra cost is totally insensitive.

“Council officers seem to have no idea how business operates.

“Over the past decade EMA and other business organisations have recommended the Council move to Capital Value rating and abolish business rates differentials. This is what the Shand Report recommended in 2008 for all local government

“But in making the change over the Council has kept a differential requiring business to pay 22 times more in rates than other ratepayers on properties of the same value.

“We understand the increases will include non-profit organisations like community clubs and some church properties including the CT Club, the RSA and the Citizens Club each of which will see their rates go up by more than 50 per cent.

“The Council has failed to consult adequately on many aspects of these changes.”

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