Friday, 22nd December, 2017
Commenting on Tauranga city councillors unanimous vote to approve a rate system change that means the business sector will eventually pay a 60 percent bigger portion of the city’s overall rates bill than homeowners, Michael Barnett, Chief Executive of the Auckland Regional Chamber of Commerce said their behavior was illogical and showed a lack of analysis and innovative thinking. “What on earth makes councillors believe that businesses have a greater ability to pay than residents?”
All ratepayers should pay the same level of rates for the services they receive. There is nothing in the proposal to impose a rates differential on business showing that services to businesses will improve.
It is council’s spending that drives rates. “Councillors need to make up their minds whether they want rates to be reduced or job security for the people of Tauranga, especially the lower paid.
“Councillors are putting an increased cost burden on business without any improvement in services yet are also wanting better job opportunities and security for their children and grandchildren. This is not the way to help Tauranga move forward,” said Barnett.
On the contrary, their behavior reinforces why New Zealand’s rating system needs an overhaul.