Business rates 'not fair'

16:00, Feb 21 2013

Increased business rates in Manukau are "not fair" and the mayor blames the Government.

Len Brown says there will be no extra services to East Tamaki businesses "overnight" from the graduated rates increase to 2.63 times the residential rate.

"It's not fair, you did nothing to deserve it," he says.

"But it is what we got in the legislation for the Auckland super-city."

Mr Brown says the council will shift 0.1 per cent a year to residents until the rates for businesses across the city are 1.7 times what residents pay.

This will be the same as under the former Manukau City Council.


"So we are going to shift the burden of rating away from the business community."

The mayor was responding to a question from Ti Rakau Developments manager Andrew Goodall at a breakfast meeting with East Tamaki business leaders on Tuesday.

Mr Goodall asked why businesses should have to pay more than "their fair share".

He says he will have to pass the increase on to more than 20 business tennants around Trugood Dr.

"Our rates will increase $30,000 over about three years, and that's a 24 per cent increase," he says.

"The current council wants to do too much too quickly."

Mr Brown says the council was forced to standardise business rates across the city.

"In the . . . amalgamating of the Auckland super-city that is what the flat differential was."

Eastern Courier