My Account
A fuel tax, a targeted rate for development land and levy on accommodation providers are being floated as ideas to fund major infrastructure projects, as Auckland Council looks to limit rate rises.
Mayor Phil Goff released his proposed Annual Budget this month, saying he is committed to keeping rate rises to 2.5 percent and is exploring a raft of proposals to fund the shortfall. The plan, which is currently short on detail, will go out for consultation early next year.
A fuel tax at 10 cents a litre has been mooted, but any tax would require Government approval. Hibiscus & Bays Local Board chair Julia Parfitt and deputy chair Janet Fitzgerald have said in the past that Coast ratepayers would be hit disproportionately hard by a fuel tax. That is because limited public transport and a shortage of local employment means that most residents drive to and from work.
Landowners on the Hibiscus Coast, particularly in areas zoned Future Urban in Silverdale, Wainui and Dairy Flat, could be hit by a proposed targeted rate aimed at curbing land-banking and funding infrastructure for housing.
Currently a central tool for funding infrastructure for new subdivisions is development contributions, which average about $30,000 per dwelling. This is paid when a dwelling is consented or connected to the water and wastewater network, but the Council says these charges often don’t cover costs.
The targeted rate would provide an ongoing fund that could be spent on infrastructure while also increasing land-holding costs, discouraging land banking. Details on where the rate would apply and how it would be struck haven’t yet been finalised.
The Mayor has also proposed an accommodation levy of about three to five per cent per room. It is anticipated the cost would be passed on to consumers. The levy is expected to raise $20-30 million.
Destination Orewa Beach chair and Beachcomber manager Brie Edwards-Adams sees the proposed levy as potentially being an opportunity to invest in infrastructure to support and encourage visitors to this area.
“If additional revenue is required to support tourism infrastructure, we see an industry-wide approach across the nation to be key and not isolated to Auckland or accommodation providers only,” she says. “Aspects that need to be addressed include how funds will be allocated and a fair way of gathering them across the tourism sector. I hope that we find a solution to support tourism that does not ultimately discourage business.”
Local boards will provide feedback on the proposals and the budget will go to consultation in February next year. The Annual Budget will be adopted on June 19 next year.
