NEW ZEALAND—The pain of constant increases in local government taxes is causing an outcry from affected groups across the country. While every household is being forced to economise during the current economic downturn, many local councils are being accused of ignoring ratepayers who are living on a fixed income.

No More Rates founder and organiser, David Thornton, said in a press release: “Rates have sky rocketed over the last few years and urgent steps are needed to control expenditure and hold down rates.”

Whilst many councils claim that they need annual increases to bring the current infrastructure up to scratch, elderly residents are being left “struggling to pay for food” says Rotorua Grey Power spokesperson Rolf Booker in the Rotorua Post.

Betty van Gaalan from Greypower on the Kapiti Coast, told Newstalkzb last month “that councils have to learn to say no to funding requests”. She believed that in her area, rate rises over the next 10 years were likely to be almost double that of the estimated figure of 37 per cent.

Such rate rises are “unacceptable” she said. A quarter of the Kapiti Coast population had reached retirement age.

Tauranga City Council candidate Graham Skellern commented in the New Zealand Herald as far back as 2007 that rates rises of up 20 percent in the area were making life difficult for elderly homeowners.

Of people aged 65 and over, New Zealand Government statistics show that nearly 62 percent have little or no income other than superannuation. Many others will have seen the value of their savings and investments greatly diminished or lost in the recent collapse of financial institutions worldwide.

A superannuitant couple in New Zealand will receive a Government income of $28,457 per annum. If they are paying rates of $1200 per annum in Queenstown, for example, the Queenstown Lakes District Council rates information sheet says they will be offered a rebate of only $34.

“Many ratepayers are hoping that Rodney Hide and the Government will stick to their guns and bring in controls over rates because too many councils have failed to recognise that ratepayers do not have bottomless pockets.” David Thornton said late last month.

I also believe it’s crucial, especially so in these times, that councils ensure that core activities are properly identified and funded before spending occurs on more discretionary activities.

The Local Government Minister, Rodney Hide, is due to report to Cabinet by August 31 on the subject of controlling rates and defining council’s “core services”.

Elderly Challenge Councils to Live Within Their Means