In its submission to the Waitaki District Council draft annual plan, the chamber noted that the plan's proposed rate rise of 3.5%, while lower than the original 4.7% rise signalled in the long term plan (LTP), was still a big rise ''in real terms''.
The chamber submission stated that the LTP budgeted higher inflation, so in real terms the increase was higher than budgeted for and was still ''significantly higher'' that the consumer price index (CPI).
The CPI, which gives the official measure of inflation through changes to wages levels in relation to price changes for consumer goods and services, had indicated only a 0.9% rise in inflation for the past 12 months, and the chamber's submission said that meant residents and businesses would be worse off for a 3.5% rise in rates.
''The ability of businesses to afford their rates is compromised further every year when these rates increase at a higher rate than their income,'' the chamber submission said.
Under the draft plan, total rates collected by the council would rise from $27.21 million this year to $28.159 million next financial year.
In Mayor Alex Familton's foreword in the draft plan, Mr Familton said the lower 3.5% rate increase had been achieved through a ''financially prudent approach'' and without cutting levels of service.
''Rather it has been achieved through additional efficiencies, savings and adjustments.''
However, chamber of commerce North Otago advisory board chairman Gary Kircher said the council should be ''upfront'' about what that rise meant in reality.
''When people are getting pay increases or a benefit increase, the CPI is the number that is used - 3.5% sounds like a small number, but when you compare it to 0.9% it's actually almost four times that.''
Public written submissions on the draft annual plan closed on Monday.
