Coronavirus: Councils under pressure to drop rates increase

Councils across New Zealand are under pressure to remove their annual rates increase this year as the country grapples with the financial impacts of COVID-19.

Christchurch and Dunedin are among several councils that have signalled they will drop their annual rates increase, but others are yet to make any changes.

Christchurch City Council is giving residents an extra six months to pay if they've suffered a financial loss. It's also aiming for no annual increase.

"This is all very difficult for people that are facing an uncertain future, so we've asked Council to come back and tell us what zero looks like," Mayor Lianne Dalziel says.

Wellington Mayor Andy Foster says the Wellington City Council will also allow a six-month deferral for residents. But rates will still go up by 4.8 percent. 

"We've got to balance between trying to minimise the impact on our communities at this time, and through the next twelve months, while trying to make sure we also have enough money to invest in the things that our people need us to invest in," he says.

But Auckland Mayor Phil Goff won't commit to anything yet.

"There are implications for cutting rate increases at a time when we're losing revenue from a whole range of things, we've got to keep the city going," he says.

Taxpayers' Union executive director Jordan Williams says an increase isn't fair for ratepayers.

"It's not fair that ratepayers, many of which are losing their jobs, are going to have to pay even more in rates at the very time they can't afford it.

"Councils like Taupo [and] Hawke's Bay Regional Council were really quick off the mark. Auckland seems to be the one council that's dragging the chain."

At least eight councils have said they're looking at freezing rates, but many are yet to make firm decisions.