Sam Warren: Taxpayers' Union Local Government Campaigns Manager on rising property rates

The economic doom and gloom continues with rising property rates. 

Some rural areas are even facing increases substantially higher than the average council rate. 

One Orewa family is facing a 72% rates rise on their rural property, as it was zoned for new development – development that can’t be done for several years. 

Taxpayers' Union Local Government Campaigns Manager Sam Warren told Kerre Woodham they’re strongly pushing for rates capping laws that would stop any rates increases above the level of inflation. 

He says it would keep the councils focused on the important things, and ensure you can’t be costed out of your own home. 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Carrywood and Mornings podcast from News Talks,
he'd be. We have been talking rates. The government as well,
aware that rates are adding to the economic doom and gloom.
They put counsels on notice last year to deliver value
for money and promise to name and shame councils who
were profligate spenders. In the New Zealand Herald today and

(00:27):
Autowe family are facing seventy two percent rates rise for
a rural property that has been zoned for new development
but can't be developed for several years. Taxpayers Union Local
Government Campaigns Manager Sam Warren joins me, Now, a very good.

Speaker 2 (00:43):
Morning to you morning Carrie.

Speaker 1 (00:46):
Of course you have been naming and shaming councils for
a number of years now, haven't you.

Speaker 2 (00:50):
Yes, we have.

Speaker 1 (00:51):
Yeah. Do you delve into what they're spending the money on.
You could understand perhaps why you would need a rates rise,
if you need to do a massive spend on water infrastructure.

Speaker 2 (01:03):
Yeah. Look, we obviously spend a lot of time exposing
lot of a number of different issues and I think
it's indicative of this culture of wasteful spending we see
so much in council these days.

Speaker 1 (01:16):
And in terms of vanity projects, or just in terms
of something being triple done rather than done once and
done right.

Speaker 2 (01:23):
Or look no shortage of issues. Obviously the vanity projects
are less, we spend a lot of time uncovering those,
but everything done by council really does take twice as
long and cost twight as much. So I really think
closer focused on that would be important to keep these
rate increases lower than they need to be.

Speaker 1 (01:44):
Is much of it because people haven't wanted to spend,
you know, to see any any increase in rates, and
therefore spending has been deferred. So in part we have
ourselves to blame. We don't vote. If we do vote,
we vote for people who don't want to see any
rates increases. We don't stand for counselor to keep tabs

(02:08):
on the council offices.

Speaker 2 (02:11):
Well, council really does have a very low turnout, doesn't it.
Across New Zealand. I think it's somewhere in the thirties,
So I'd love to see more participation that I think,
particularly this year, we're going to see a growth in
that because rates have just gone up so much in
the last few years, particularly that I think it's really
driving the cost of living for all these people out there,

(02:31):
and I think they're just fed up. Now.

Speaker 1 (02:34):
Well, I mean I don't know what you could do,
like if you are the family that's that's quoted in
this morning's Herald is seventy two percent rise that is
simply not sustainable for many households.

Speaker 2 (02:46):
No, No, that's it's particularly awful what we're pushing for
so strongly as rates capin laws, they would stop any
rates increase above the level of inflation, and really that
would keep councils focused on just the important things and
making sure that you really can't be costed out of
your own home like this port blog.

Speaker 1 (03:03):
Yeah, although when I was READO about rates capping and
looking at New South Wales and Victoria, the article ased
reading said that it would be dangerous here because New
Zealand system of government is structurally different from Australia's and
that we have a two tier system. Australia has a

(03:24):
three tier system, so that when local councils face financial constraints,
states can and often do step in with additional funding,
direct service delivery or grant schemes. In New Zealand that
doesn't happen.

Speaker 2 (03:39):
Look it depends what the model we adapt looks like.
There's obviously some in Australia. In the UK we're heavily
in favor of Australia. I think what really is the
most important issue is that counts as are kept on
task with just the basics. It's why we've seen such
a failure in keeping up within structure already and particularly
right now, rates have just kept going up and up.
So honestly, I think it's time that it comes to

(04:00):
New Zealand and we're expecting big things from the minister
in that space.

Speaker 1 (04:03):
Well, they've certainly warned, haven't they. They've you know, they've
said they will do it.

Speaker 2 (04:11):
That's right. We've heard as early as Christmas, which would
be quite be a great Christmas present. But honestly, like
I say, it's one of the biggest drivers of the
cost of living and particularly inflation is as high as
it is still because these councils are driving it. So
it's just endless and really when you see the action
required to keep these excess rate increase as low as possible, how.

Speaker 1 (04:34):
Do they base what they take from us, how they
charge us if it bears no relation to property values
at all? Yet they call them valuations.

Speaker 2 (04:46):
Well that their valuation, as you allude to it, that
determines the distribution of the burden. So yeah, and obviously
rates come up from very different components, but there is
a general rates burden across for example, and it's just
gone up by three hundred million, or just shiy up
three hundred and so the way it's distributed works on

(05:07):
those the valuations that actually aren't very helpful in the
long term.

Speaker 1 (05:12):
No, and yet land value has gone down.

Speaker 2 (05:15):
Exactly what you could see. That's already that numbers are
out of day by a year, so that negative nine
percent really it's not reflective of current values. So look,
there'll be many improvements for the system would like to see,
but frankly it's just I think number one is rates
capping in general.

Speaker 1 (05:30):
The West Coast Regional Council are rates increase of sixty
five percent? How can they possibly be justified?

Speaker 2 (05:39):
Well, that's over three years, so it's always important to
remember that these rate increases are cumulative. They don't stand alone.
So every seven point five percent this year and last year,
it stacks up and up. So obviously councils face very
different issues. But no, Honestly, this is why we're pushing
for rates capping. A very strong message needs to be
sent to councils that they just can't keep getting away

(05:59):
with this.

Speaker 1 (06:00):
Won't they just do away with libraries and free entry
to swimming pools?

Speaker 2 (06:05):
No, I think that's an excuse being thrown around. I
don't think anyone thinks that those aren't important things. But
it's the nice to hads that we would like to
see less of, and really those basics, roads, rubbish, water pipes,
those sorts of things. I don't think it's the libraries
that we face losing.

Speaker 1 (06:23):
I tell you they'll be dangling those and saying if
you try and curb our spending, this is what will go.

Speaker 2 (06:29):
Look, I'm sure they would be in We've actually caught
local government New Zealand planning a campaign that would effectively
scare people and what they would stand to lose. But
let's not forget that they're worried about losing their income.
Local council obviously decided it means it needs an extra
three hundred million justice year, So I mean they're not
playing around. They get to lose that and that's fine,

(06:51):
But this is again why I keep alluding to rates camping.
It keeps it very manageable.

Speaker 1 (06:56):
Textas says that Jessinda Radune said, with three waters, there
wouldn't have been a rates increase.

Speaker 2 (07:02):
Oh well, I think you know how would respond.

Speaker 1 (07:06):
I think they're still stardust in the eyes.

Speaker 2 (07:09):
There might be some startus, but there was a very
large bureaucratic nightmare that certainly would not have lowered these
did these increases, but that's a fine diversion.

Speaker 1 (07:18):
To play, exactly, Thank you very much. Sam sam Moore
on local government campaigns, manager for the Taxpayers Union. News
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