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'Good luck with that': Tamihere's rate freeze promise met with scepticism

Author
NZ Herald,
Publish Date
Mon, 26 Aug 2019, 12:59PM
John Tamihere has promised to freeze rates and cut back on council spending. (Photo / NZ Herald)
John Tamihere has promised to freeze rates and cut back on council spending. (Photo / NZ Herald)

'Good luck with that': Tamihere's rate freeze promise met with scepticism

Author
NZ Herald,
Publish Date
Mon, 26 Aug 2019, 12:59PM

Auckland mayoral hopeful John Tamihere's vow to freeze rates, if elected, is being met with scepticism; with one local ratepayers' association calling it a hollow promise.

Tamihere has come out swinging in his campaign to be the city's next mayor; announcing overnight that he will put a hold on rates rises for the next three years.

He would also ask that landlords freeze rent hikes during that time - but would do so based on the goodwill of landlords, rather than enforcement.

But some have laughed at the pledge; saying more was needed to back it up, rather than just a statement.

Titirangi Residents and Ratepayers Association chairwoman, Mels Barton, laughed when told about Tamihere's vow, saying: "Good luck with that.''

"I don't think freezing rates is realistic. A lot of people voted to have their targeted rates for the next 10 years to fight kauri dieback and to clean up water on our beaches."

She said there was a commitment there from ratepayers - as well as from the Auckland Council - that money would be spent dealing with those particular issues.

"We would certainly be very disappointed if that wasn't followed through with; because that's a 10-year programme."

Barton said although people would be happy not to pay anything at all, the reality was that it cost money to run a city.

Council services would start to crumble if mayoral hopeful John Tamihere freezes Auckland rates for three years, says councillor Daniel Newman.

Newman and Mike Lee, both members of the 'B' team on council opposed to Mayor Phil Goff, have voiced concerns today about the policy direction of Tamihere, including his plans to freeze rates, privatise assets and build a mega, 18-lane harbour bridge.

Today, Tamihere announced his rates policy, saying council spending would be up for review and he will take the knife to credit card spending.

Tamihere said he would cancel $260 million from Goff's promised 3.5 per cent rates increases each year during the next term and find the money through a 1 per cent efficiency gain across council and council-controlled organisations (CCOs) each year.

He has also pledged to ditch Auckland's regional fuel tax and would ask landlords to freeze rents should he win the election.

Goff has rubbished Tamihere's finance plan as "incoherent and lacking in basic financial understanding".

The mayor's view is partly shared by Newman and Lee, two of his biggest critics on council.

Newman said freezing rates would exacerbate already underfunded services by Goff and services would start to crumble, saying more needs to be spent on maintaining roads, particularly in the south.

There is no chance Tamihere would get a majority of councillors to support freezing rates for three years, "I will not vote for that", said Newman.

"It doesn't matter who the mayor is, if you can't get the numbers from colleagues, things won't happen," he said.

Newman is also opposed to Tamihere's pledge to privatise 49 per cent of Watercare and unsure if his harbour bridge plan is technically viable.

Lee said he saw Tamihere at an event yesterday and was impressed with his speech "but some of his policies are somewhat bizarre and desperate".

He said Tamihere was an intelligent person with a social commitment who should highlight the disenchantment with council and Goff and "not come up with policies to the right of the Act Party" that may not appeal to the majority of Aucklanders.

He wondered if Tamihere was being badly advised on his bridge plan and whether his rates policy would precipitate asset sales to pay the bills.

"He is the challenger and has to draw attention to himself but it is important the challenger is reasoned and considered. It would be hard in my view to categorise some of his policies as reasoned and considered."

Tamihere hit back at Newman and Lee, telling Newman to grow some courage and stand as mayor.

"Daniel wants everything but never wants to pay for it. It's the chicken and egg political syndrome for Daniel, you'll never be able to please him," he said.

Tamihere accused Lee of being stuck on the ports policy of 1992, saying he has announced the sale of the Ports business but not the sale of the land.

"With Watercare, I am releasing a minor share - 49 per cent of equity to clean the beaches today and not when Goff gets around to it. I am amazed at the financial literacy of some people," he said.

Tamihere said he needs to find $86 million a year from a balance sheet of $5.5 billion.

"If you cannot find savings across the parent company and the six CCOs, you do not deserve to be mayor," he said.

Goff said his opponent's policy underestimated the cumulative impact of such a rates freeze and didn't account for council borrowing rules, Goff said.

Goff's team estimated the total lost revenue for the city would be closer to $3.8 billion over 10 years.

Tamihere told the Herald there were options to cut infrastructure spending - including the City Rail Link.

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