Auckland rates getting fairer

There is every reason for all of Auckland to be paying rates on the same basis, and none whatever for businesses to be paying higher rates than residences, the Employers and Manufacturers Association says.

"The main factor affecting residents' rates going up or down this year is the transition process to the new Capital Value rating system, and property revaluations," said Kim Campbell, EMA's chief executive commenting on a news item in today's NZ Herald.

"In applying the new rates system across the whole city, and notwithstanding the swings and roundabouts for individual ratepayers, Auckland Council should be commended for keeping its rates increase reasonable at 2.4 per cent. Mr Campbell said.

"The Capital Value system is widely recognised as fairer than others, and the way to limit overall rates increase would be to raise the Uniform Annual General Charge to a realistic level.

"Some ratepayers, particularly for residences out west, are in effect being compensated for paying very high rates hitherto and are now enjoying three years of rate reductions.

"The contention that annual reductions in the business rates differential are causing residential rates to rise unduly is simply a red herring and untrue. The effect overall is less than 0.1 per cent.

"In any event there is no justification for charging business $2.43 for each unit of council service while residential ratepayers pay $1.00 for the same unit of service.

"Business rates differentials should be abolished.

"Auckland needs the investment and jobs this would help attract, and needed to pay for the Auckland Plan and making Auckland a better place to live and work.

"Whereas the increases for residential ratepayers are capped at 10 per cent the same doesn't apply to business ratepayers - they could face an uncapped increase."

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