Wellington's rating scandal and the DLTCCP

Councillors,
I continue to regard the shift in the rates differential from the business sector to the residential sector as a redistribution of wealth to the business sector. Rates are a deduction for business and passed on and this puts an unfair burden on the residential ratepayer. This is effectively a rates subsidy to the wealthy from the poor. Around 30 percent of the residential sector is rented and so there is an even harsher penalty on those who rent. Furthermore, the commercial sector, in particular the CBD, make substantial capital gains that are not taxed. Therefore rates are entirely appropriate at the higher levels that have been levied. There is no need to move the differential any further. In fact it should be reset at a higher level to the business sector, much of which is owned by multi -national corporations where no person is affected, unlike the residential sector.

Rates should address the issue of Capital gain that comes about via the benefits commercial property attracts in the Capital. Added to this is also the provision of amenities that outsiders use that is supplied to the commercial sector. Around forty thousand people come to the city each day and use the city's amenities while employed by the commercial sector. It is the commercial sector's responsibility to cover these costs. They are now being transferred to the residential sector. There are also the costs incurred by approximately 1.5 million tourists who visit the city each year- about 4 million bed nights used. All this is becoming a cost to the resident.

This is the most political decision you make. There is a saying that "The rich man (and the Council and the Corporation) will do anything for the poor man except get off his back."

Cr Pepperell