Auckland Council votes on proposed property rates cap

Howick ward councillor Bo Burns says she supports capping Auckland’s property rates.

The Howick ward’s two councillors have voted in favour of a proposed cap on property rates at Auckland Council’s governing body meeting today.

Voting in support of the rates cap on February 3 were Howick ward councillors Maurice Williamson and Bo Burns as well as councillors Mike Lee, Greg Sayers, Ken Turner and John Watson.

But the vote was lost as it was opposed by mayor Wayne Brown, deputy mayor Desley Simpson, and 12 other councillors. Councillor Christine Fletcher abstained.

The Government last year said Cabinet would consider options to control property rates rises, including possibly capping rates through legislation.

An RNZ-Reid Research poll released late last year found 75 per cent of respondents support placing a cap on the amount councils can increase property rates by each year.

Fourteen per cent of people polled opposed a rates cap while 11 per cent did not know.

In a social media post following the vote, Burns says she wants to be clear about why she supports the proposed rates cap from the Government.

“It comes down to one thing above all else – the people who elected me and the households I represent.

“Seventy-five per cent of people opposed as you will see in the RNZ poll.

“I absolutely accept the policy isn’t perfect. There are flaws, especially around process.

“The way councils may need to apply for exemptions or funding for long-term infrastructure projects is not ideal yet and needs far more clarity.

“I am not afraid to say that, and we shouldn’t have to beg to nationwide MPs for money for local projects.”

Burns points to concerns around rates raised by councillors including affordability; nice-to-haves versus necessities; the need to be honest about what’s essential and what’s not; and the fact savings are real, not theoretical.

“There’s been a lot of talk about ‘only a couple of dollars a week’, but the Taxpayers’ Union rates cap dashboard shows a four per cent cap could save around $36.85 a month for the average household.

“That’s not a can of baked beans. That’s a basket of staples, or yes, even a bottle of Mumm if that’s your thing.”

Howick ward councillor Maurice Williamson also voted in favour of the rates cap. File photo supplied

Burns says the Government needs “skin in the game”.

“Central Government does not pay rates on many of its buildings, including universities and Government assets.

“If it did, Auckland alone would receive around $38 million a year. That conversation matters.”

And she says Auckland shouldn’t have to keep “begging”.

“Having to constantly go cap-in-hand to ministers and MPs for Auckland projects doesn’t sit well with me.

“We need clearer, less bureaucratic pathways for funding major infrastructure without endless red tape.

“Councils will be able to apply to exceed the cap for major, critical infrastructure.

“That process must be clear, transparent, and tied to long-term plans with projects clearly identified and justified and fast track approval so we are not held up by red tape Government decision-makers.

“That’s where the work still needs to be done in my mind.

“At the end of the day, I supported the rates cap because it puts pressure where it belongs, but have concerns about process and how we manage our large infrastructure and services.

“I’m also not afraid to bring big ideas to the table for other income streams or find cost savings.

“Both council and Government need to be efficient, to find new revenue streams, and to stop passing every cost straight on to ratepayers.

“But I won’t apologise for standing up for those that voted for me, and also talked to me all through my campaign and continue to daily about rates.”

Responding to the council voting against the proposed rates cap, Pakuranga MP Simeon Brown says: “Auckland Council’s decision to vote against a proposed cap on property rates shows the majority of councillors are out of touch with Aucklanders.

“I want to acknowledge Howick ward councillors Maurice Williamson and Bo Burns for standing with east Aucklanders by supporting the proposed rates cap.

“The Government is focused on keeping costs down for families, which is why we have agreed to progress a rates cap to help councils keep increases under control and ease pressure on household budgets.

“Auckland ratepayers deserve a council that lives within its means, focuses on the basics, and is accountable to the people it serves, and our decision to enact a nationwide rates cap will help ensure exactly that.”

• Disclosure: Bo Burns is the owner of Times Media.