Press Release Time for belt tightening - 2021 Rates
28 August 2007
Enough is enough- rates increases need to be limited to inflation
by the end first term of the next council says Megan Woods.
Megan Woods, 2021 candidate for Mayor, said that if elected she
would aim to get rates increases limited to inflation (the rate
of the CPI) before the next elections.
“We must stop these high rate increases!” says Megan
Woods. “Christchurch residents deserve better than high
rate increases every year to fund dumb decisions like City Mall,
the Council $100m Palace, and huge Council marketing expenditure.
“Rates are currently projected to go up by 26% in the next
three years, having already gone up 20% in the last three years!
Rates will have more than doubled (54%) in 6 years! Enough is
enough” says Megan Woods.
Megan Woods welcomes the report of the Local Government Rates
Inquiry and agrees that Christchurch City needs to rein in spending.
“I also agree with Business NZ that we can’t see businesses
as a cash cow.” Woods says she would ensure the Council
looked at and takes notice of the rates review.
“While we know there have been price jumps in construction,
and for petroleum products including roading bitumen, but these
do not explain rate increases at such exorbitant levels. Rates
doubling is a serious burden on Christchurch residents, ratepayers
and businesses and must stop!”
“There needs to be more budget scrutiny. We have already
committed to this through intention to reintroduce standing committies.
This structure will include a budget committee. We are not going
to get rates under control by good luck. It requires good management
and discipline. This is what 2021 offers. Judge us by our record”.
When 2021 controlled the finances of the Christchurch City Council
from 1995-2004 through a committee chaired by David Close and
subsequently Alister James, it not only had a track record of
modest rate increases but also increasing the provision of services
and community facilities. A new 2021 Council will aim to reduce
rate increases to the level of inflation in its first term. It
will do this by both (1) cutting extravagant spending, and (2)
by better scrutiny and control of the Council budget.
A Christchurch 2021 Council will review all capital expenditure
as a matter of urgency in the new term. A practical solution to
the current Council building dilemma will be found within a maximum
cap of $60 million, rather than the current $100+ million extravagant
plan. The City Mall project, meanwhile, has ballooned from $2
million to possibly $16 million. 2021 will develop a much more
modest proposal for this important part of the city. Under this
Council, “marketing” and public relations costs have
soared, with full-page newspaper advertisements used to justify
unpopular decisions. It is time for belt-tightening.
Current council rate increases
2005-06 3.49%
2006-07 8.20%
2007-08 7.35%
Current projections
2008-09 8.77%
2009-10 9.02%
2010-11 8.20%
