Mayor Tory Whanau has supported the idea of introducing rates for vacant land in the city center. The Wellington City Council has voted to maintain the current rates for businesses, which could mean that the expected increase in rates for residents may not be as high as previously thought.
During a meeting of the Long Term Plan and Finance Committee, initial decisions were made regarding new rates and changes to the council’s rate remission policy. A proposal to reduce the commercial rates differential from $3.7 to $3.25 sparked a heated discussion. Councillor Tony Randle highlighted that businesses outside of the central business district were struggling with high commercial rates.
Councillor Ray Chung expressed his support for businesses, but also pointed out that changing the rates wouldn’t make a difference to him as the tenant would be the one to pay for it. He voiced his discomfort with the idea of residential ratepayers paying more to support this change.
Councillor Ben McNulty suggested that the new government would provide support to businesses in other ways, such as scrapping Fair Pay Agreements and not increasing petrol taxes. He argued that these measures would be more meaningful to the business community.
The committee eventually voted against the decrease in commercial rates differential. However, they approved all other changes, including the introduction of rates for vacant land in the city center. Mayor Tory Whanau proposed an amendment to increase the differential to $5 in general rates for every $1 that a residential property of the same value pays.
The council also decided to delay rates for some earthquake-prone residential buildings until they have been strengthened. This postponement would be available for up to three years prior to when the strengthening work is undertaken.
The decisions made during the meeting will be used to guide further work on rates within the council’s 2024-34 Long Term Plan. Formal consultation on the draft Long-term Plan will take place in April 2024, and any changes to rates would be implemented from July 2024.
