ORC rates proposal: Laws cites Govt rules

Mounting costs have forced the Otago Regional Council to propose steep rates rises, and one senior councillor has warned local decision-making could be in jeopardy if central government is allowed to get away with being bossy.

Noting some rising costs reflected rules and regulations imposed from Wellington, ORC deputy chairman Michael Laws said he feared regional councils would have less control in the future.

"We may need to be more questioning about some of the dictates that are sent our way," Cr Laws said.

His comments came ahead of the council yesterday approving for public consultation a draft plan that maps out large uplifts in spending for the next 10 years.

The council has proposed a total rates rise of 47.5% in year one.

General rates could increase by as much as 73.2% and targeted rates by 29.3%.

An alternative option is to smooth out rates rises over the 10 years, so that the leap is not as large in year one, but the total over the decade would be the same.

The consultation document was approved unanimously at a meeting in Oamaru yesterday.

Council chairman Andrew Noone conceded the organisation had been understaffed in the past.

This was not sustainable and the council was in a transition period, he said.

The council would need sufficient staffing to enable it to fulfil the role it would need to play in the future.

"The requirements on regional councils around the country are increasing as the Government and our communities take a more urgent interest in environmental issues."

An ambitious work programme had been proposed, he said.

"We’re investing in more comprehensive and detailed environmental monitoring and science, to give us the best information basis for managing land, water and biodiversity in Otago."

He expected the rehabilitation of Lake Hayes, and how this might be paid for, would be a point of interest for some submitters.

Asked what the reasons could be for proposed increases of such magnitude, Cr Laws said his own council needed to step up, but a lot was also being asked of it.

"We haven’t been doing our job for 20-odd years," Cr Laws said.

However, there were also significant costs effectively imposed by the Government, such as beefing up water regulations and environmental standards, Cr Laws said.

He said any council proposing what he believed could be the largest rates increase in New Zealand local government since 1989 - in percentage terms - would need "bloody good reasons".

"And, to be fair, there are."

Otago’s rates had been very low and he expected, even with the proposed increase for next year, they might still be the lowest of any regional council.

The average total regional rates bill in Otago is $259.

The average general rate is $107 and that could increase to $186 in the first year of the plan.

Cr Hilary Calvert said the council’s hand had been forced to a large extent.

"The bulk of the increase is required by the Government."

The council had to make sure it got value out of its spending, she said.

Cr Marian Hobbs said it was important for the council to provide regional leadership.

"Our to-do list is huge."

Cr Michael Deaker said the council had previously prided itself on being tight with its finances, or miserly. It was now catching up.

"We should’ve been more progressive, starting some time ago."

Cr Gary Kelliher said the council was operating in an environment where "the goalposts have changed substantially".

Cr Kevin Malcolm said he had heard from several farmers about the proposed increases.

Most had suggested simply getting on with it, he said.

The consultation period runs from April 9 until May 9.

grant.miller@odt.co.nz