Updated: 13 March 2008 08:30 NZDT

Times Viewpoint

The Times asks: Can you pay the rates after July 1?

• Howick and Pakuranga Times

AT this time each year the Auckland region’s local councils announce there’ll be a percentage rates rise for the next financial year, starting July 1.

Readers in Times circulation areas pay rates to the Manukau City Council and Auckland Regional Council.

Councils have been claiming for many years that they’re trying to keep rates increases at the national level of inflation.

However, we’ve been hearing around Manukau’s neighbourhoods for some years that people are really struggling to pay their rates, or that property owners and business operators are scrutinising a lot closer their bills from councils and utilities (water, electricity).

That’s because consecutive rates increases – sometimes at levels above the level of inflation – have really bitten into household and business budgets.

Many are genuinely worried whether they can afford paying rates and local charges on properties, or for businesses operating in Manukau.

Many wage and salary earners haven’t had a pay rise in recent years, even a cost-of-living adjustment. And business being business, some years are better than others for a company’s bottom line.

A bad year for business could become worse when a firm cannot cover its local government charges.

Councils have the right to ok rates increases. But do households or businesses have the same amount of say in increasing household and business revenue to eventually pay for local government services?

People on fixed incomes such as retired pensioners certainly do not. They just face up to going without something else and battle on. After a few years, it must become incredibly frustrating to continually have to cancel items of expenditure, because the council needs to build for millions of dollars, for example, an eye-catching bridge many kilometres from a major water source.

As Manukau and the Auckland region undergo their biggest growth and modernisation period in history, there are more projects (local and central government-driven) on the public servants books than ever before, for the building of new infrastructure and amenities.

But is the system out of control? While these projects and their delivery are deemed important, at what cost does it come? Could the rollout of the projects and the revenue collection for them be slowed?

The government’s rates rebate system has been beneficial to many, but it doesn’t necessarily assist working families in Manukau that are faced with increases on all bills across the spectrum, while not necessarily increasing their revenue at the same speed.

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As the Royal Commision of Inquiry for Auckland Governance starts asking for public comment, and the councils parade their draft annual plans for 2008/9, in which Manukau City Council is forecasting a citywide average rates rise of 4.9 per cent, which will have on top of it an ARC rates increase and a hiking of Manukau Water charges, the Times is asking: How many ratepayers are concerned they’ll struggle to pay their bills after July 1?

What are your thoughts? What should be done?

Do you even have the time to dedicate researching for yourself why rates bills are always on the rise?

What kind of assistance or solutions would you like to see delivered by the councils?

As the Manukau City Council and other councils start their annual plan public consultation periods, the Times is interested in doing the same. Please write to: feedback@times.co.nz.