WELLINGTON'S RATES OUT OF CONTROL

Press Release – Bryan Pepperell Wellington City Councillour
Recently I asked for the compounding rate increase for residential property over the last five years from the city council´s CFO. My records from 1 July 2003 to 30 June to 2004 show my rates at $1275.69. They are now $2204.52.

That’s close enough to 73 percent and I pay for my own rubbish. The figure I was given by the CFO was 45 percent.

Now this is an incredible increase but it does include the shift in the differential rates. However it still has to be found in difficult times and, as was pointed out to me today, only people pay rates not businesses. Either people in business absorb the rates or they pass them on. That is not an option for residential ratepayers as they are the end user.

Many people come to the city during the day to work or visit; some stay overnight and others stay a little while longer. While they are here who do you suggest pays for the services they use?

On page 4 of the short version of the Your City Your Say of the LTCCP 2009-2019 it says we are reducing the amount that the commercial sector subsidises the resident. That is a politically loaded statement. It is not sectors but people who pay and they are individuals who either can pass on their rates or cannot. Given that it is not the business that pays rates but people, where does the notion of subsidy lie? The council document is subjective and political.

end