The Employers and Manufacturers Association is demanding Tauranga City Council reduce its proposed level of rates increases.
The EMA wants its members' rates increase lowered from an 'excessive” 10.4 percent to match the level of inflation – four per cent, says EMA chief executive Peter Atkinson.
'We request and expect the Tauranga City Council to adopt a policy of keeping rates increases at or below the rate of general inflation, which is currently four per cent,” says Peter.
'Some New Zealand councils have adopted a policy to ensure rates do not increase by more than population growth plus inflation – Hutt City has established a rule on these lines and adhered to it. We recommend Tauranga do the same.
'EMA believes it is incumbent on all local government, particularly in the present recessionary environment, to strive to keep their rates increases at or below the rate of general inflation.”
He says Tauranga businesses are upset at facing the rates increase of 10.4 per cent as is established in the annual plan.
In the proposed July 2011 to June 2012 budget, the council is planning to save $33 million by deferring and/or cutting back on previously forecast expenditure and to use these deferred savings to reduce debt.
'Paying off debt is not a going to solve all Tauranga's problems in the short term,” says Peter.
'Even with the massive rates increase, debt is expected to be $370 million this year and $395 million next year or just short of the Ten Year Plan forecast of $410 million.
'If there are to be increases in council investment then they should be highlighted with new revenue streams clearly identified for funding and paying for them.
'We acknowledge the city faces a difficult situation because of static income, higher costs and these higher than desirable debt levels.
'We endorse the council's debt reduction plan, but the proposed 10.4 per cent rate increase for 2011-2012 is simply excessive,” says Peter.
'In the present environment, business cannot afford to have any extra costs passed on in the form of higher prices.”
EMA has more than 324 member businesses and other organisations in the Tauranga district including members of Export New Zealand.
Together they employ more than 5400 staff who receive wages/salaries totalling about $260 million per year.
14 comments
Rates increase not 10%, but 30%
Posted on 09-05-2011 17:43 | By wreck1080
From what I understand , TCC has promised to deliver rates rises of over 30% over 3 years. No other council in NZ is imposing this on their ratepayers to my knowledge. All during the largest recession in some peoples lifetimes.
ONLY ANSWER OF THAT REMAINS
Posted on 09-05-2011 17:54 | By Secret Squirrel
However you have to date seen the attitude about all when it comes to parking meter money, all collected in the CBD and spent everywhere else, that is unfair, so using the same philosophy means that just a request will be answered by placement of yet more surveillance devices to monitour hapless citizens in their daily lives.
EMA chief executive Peter Atkinson
Posted on 09-05-2011 18:55 | By Murray.Guy
EMA chief executive Peter Atkinson emphatically stated that it was possible to achieve a max 4% rate increase requirement within 3 years. That really got my attention having a 'rating cap aligned to the CPI mindset', objective. So I asked, "Be specific, how is this possible?" Sadly but not surprisingly, his assertions were made without any basis of fact, responding with the comment that 'he may have been a bit liberal with his optimism!
as long as it isn't my services that are cut
Posted on 10-05-2011 09:16 | By The author of this comment has been removed.
I also want a big cut in this 10% rates increase. But I wonder how many of the same people who want the rates cut don't want anything like road repairs or park maintenance or library costs cut if it affects them. By reading the info leaflet about the so-called Sydenham Park in Brookfield, I see that Mr Sydenham's intentions seemed to be for education and not a park like some people now want. I believe Mr Sydenham's intentions could be honored by using the area for a university botanical institute. The precious trees could be retained, housing for students (or the poor) could be built round the edge. It would be a wonderful solution and not cost a cent on rates. By the way, the nearby Carmichael Reserve is fantastic.
The mind is willing but the body is not able!
Posted on 10-05-2011 12:37 | By WARTS N ALL
The only solution is that Councillors display some resemblance of Governance skill to manage the resources so willingly handed over to the CEO (like we don't have one at present and I can not figure if that actually has made any difference, says a lot really ...) Handing over all the money for ABC and D is not then the time to walk away off into the sunset and think the job is then done for another year, rather it is actually the opposite to that in fact, the results of this little escapade are clearly evident in the rates bills shoveled out the door, all of which results from the "add it on" mentality rather than a "governance" mentality.
roads and libraries
Posted on 10-05-2011 13:04 | By Gringo
Who needs the library, the art gallery, the constant tearing up of our roads, the army of tree fiddling manicurists, or sand dune barricading do-goodersetc etc? There must be a 100 or more areas that TCC can cut costs rather than increase rates, every other business in the bay has had to including my own. Perhaps they should sell some assets to reduce debt or not buy any new vehicles for 5 years,i.e. things that the commercial sector has been doing.
Likely an even bigger increase ...
Posted on 10-05-2011 21:47 | By Murray.Guy
The failure of Tauranga City Council to timely upgrade storm-water infrastructure in the Triton Avenue (Mount Maunganui) area is going to bite us in the wallets sooner rather than later. Flooding of premises is on increase and green space (soakage) is replaced with concrete. Estimates rang from 7 million for a temporary fix to $80 million. I'll be looking real close at rationalising assets (for potential sale) and procurement efficiencies!
@ MURRAY
Posted on 11-05-2011 18:17 | By WARTS N ALL
Good one Murray selling the family silver will fix it for sure, but you forget that the bank is knocking on the door and they will take all the money you raise.
COME ON MURRAY LIKE WHEN
Posted on 11-05-2011 18:23 | By WARTS N ALL
Procurement efficiencies! ? ? ... New Concept for you Murray ... "WALK THE TALK'
Wot's up Doc' Guy
Posted on 11-05-2011 18:36 | By Hebegeebies
What bloody family silver could we sell my understanding is the public appetite for junk bonds and bundled subprime toxic debt is no longer flavour of the month. Say $7m to $80m is a huge range to fix flooding could we narrow the disaster spread . My understanding is there may also be skeletons in the closet at Otumoetai / Matua as well .Report please on worse case scenario basis.
EMA MORE EFFICIENT THAN TCC
Posted on 12-05-2011 10:13 | By YABBA DABBA DO
EMA members have a total wages bill of $260m at an average of $48,000pa, TCC have an average of $70,000 and if allthe consultants were added in most likely over $100,000 average a year. Typical isn't it!
SILLY LANDLORDS
Posted on 12-05-2011 10:57 | By YABBA DABBA DO
They brought cheap land because is low, then did not make the obvious logical sensible thing happen, raise the floor by 1-2 blocks then teh last thing to flood is the building. Take responsibility for your own actions on that one.
ISN'T TCC PIECING YOU OFF ?
Posted on 14-05-2011 11:33 | By Investigator
Nearly every other Council in NZ has fixed a rates increase of around 4% and we in TAURANGA are getting 11.4% Surely the penny has dropped by now .Sorry I nearly forgot Tauranga has got the turkey voters who voted in the TCC turkey shooters and pheasant pluckers.ENJOY suckers.
FLOOD PRONE
Posted on 14-05-2011 11:56 | By WARTS N ALL
Always was and still is, like has something changed? So why is that a TCC problem to fix, The area up the whole valley is low, wet and in places best described as a "wet-land" verging on tidal zone. The rain and runoff actually has no where to go.
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