10 Jun 2010

Infrastructure blamed for rises in rates

8:56 am on 10 June 2010

Some councils are citing costly infrastructure projects as the reason for rates rises of almost 10%.

Local Government Minister Rodney Hide has voiced concern that rates increases are exceeding the level of inflation, which was 2% to the end of March.

Masterton District Council has proposed a rise of 9.6% to help fund a new waste water scheme.

Tauranga Mayor Stuart Crosby says an 8.9% rates rise by the council will go towards sewerage, flood protection and transport projects.

However, Auckland City Council agreed on a rates rise of 1.9%.

Mayor John Banks says Auckland's size means rates can be kept lower than any of the main centres, without hindering services.

Mr Hide says that while an attempt to cap rates rises to the level of inflation did not gain support from Cabinet, he will keep pushing for legislation that would force councils to rein in their costs.