6 Jun 2009

Forest companies facing more than 100% rates rise

8:07 pm on 6 June 2009

Forest companies in Kaipara in Northland face rate rises of more than 100% this year to help pay for roadworks.

The Kaipara District Council has the power to charge forest owners for the strengthening and repair of roads hammered by logging trucks.

It hasn't billed them in the past because regional development funding covered the cost.

However, Kaipara's deputy mayor, Richard Alspach, says the funding decreased last year, and no longer covers all the costs involved.

Mr Alspach says the forest owners' rates will rise this year from $140,000, to $350,000.

He says forest owners hold 14% of Kaipara land, and pay low rates compared to the roading costs.