Tide is high for a jump in rates

A "king hit" from the regional water management strategy may inflate Environment Canterbury (ECan) rates next year.

ECan councillors voted yesterday in favour of an 8.7 per cent rate rise as part of the draft annual plan, increasing expenditure by 18.5 per cent on last year to a total of $141.4 million.

General rates would increase 3.9 per cent under the proposal. However, targeted rates would rise 14.3 per cent, mostly because of an extra $3.27m to run the strategy's water executive.

Christchurch Council of Social Services secretary Sharon Torstonson said a possible rate rise was "really alarming", considering the proposed GST increase and climbing electricity prices.

"We keep hoping there's going to be a light at the end of the tunnel [for low-income families], but they're just seeing more trains coming towards them."

The proposed rate increase will be formally adopted this month and go out for public consultation before the rates are officially struck in June.

At yesterday's special meeting, Cr Jo Kane said she had reservations about the rates rise considering councillors endorsed a 6.6 per cent "budget envelope" in December and staff managed to cut that to a 4.2 per cent rise before the water executive costs were added.

She said the budget envelope should not be inflated and decisions should be made to cut costs.

"It's not a sustainable way to budget," she said.

"There's no doubt the Canterbury water management strategy is a king hit in the first year."

Cr Mark Oldfield said ECan's rates were not the only increased cost families faced. If there was agreement on the latest rise, ECan's rates would have increased 39 per cent in three years.

"These percentage increases continue year after year after year," he said.

"That's why this organisation is unsustainable in my view."

Cr Bronwen Murray said she could not agree to such an increase.

She was unsure the water strategy would address different issues than those raised under ECan's proposed natural resources regional plan.

However, ECan chairman Alec Neill said he was comfortable with the rise, saying the strategy had public support.

The water strategy is a Canterbury Mayoral Forum plan to end debate over the region's water resources.

Of ECan's extra $3.27m to run the strategy's water executive, $1.44m was for an environmental restoration project.

Another $1.02m has been earmarked for the water executive's operation, $330,000 to support the 11 water management committees, $400,000 for further reports, investigations and advice, and $80,000 for rate-recovery costs.

- © Fairfax NZ News