Mayor Len Brown’s 2.5% rates pledge worthless

[statement by David Thornton]

The promise by Auckland Mayor Len Brown to hold rates increases to 2.5 % hides the true picture that two in three ratepayers will pay above the so-called average.

The 2.5% increase is not the average individual ratepayers will pay, it is the increase in the total amount of rates that the Mayor wants to collect from all ratepayers next year.

What is certain is that, any rates increase above the current rate of inflation of 0.7%, will be necessary to meet increased interest payments arising from increased borrowing, and increased spending on on projects such as the Central Rail Link which will not receive Government funding for at least 4 years.

Mayor Brown boasted that in the current year the average rates increase was 2.9% but the facts are that,

26% are paying less than 2.95 or have a decrease in rates.

74% of ratepayers are faced with increases above 2.9%,

34% of all residential ratepayers have increases above 5%

And at the top end 25% of all residential ratepayers are paying increases of 7%-10%

With that track record of misinformation Len Brown’s promise is both misleading and worthless.

The only way to hold rates is to stop borrowing, cut out wasteful spending, and reduce the number of staff being paid above $100,000.

Ends.

© Scoop Media