Source: Radio New Zealand
Auckland mayor Wayne Brown with his cap and can of beans. Supplied
Auckland’s mayor says the government’s proposed legislation to cap rates rises is “ridiculous” and “nonsense”.
The government wants councils to limit annual rates increases and is seeking feedback on a rates cap.
At Tuesday’s full Auckland Council meeting, Wayne Brown put on a cap saying ‘RATES’ in a self-described move to mock the proposal.
He said the rates cap plan was a “fascinating piece of nonsense from Wellington”.
“I shall put my rates cap on while we mock this piece of ridiculous legislation,” Brown told the Council meeting.
“And I have a can of baked beans here which represents the amount of saving [over] a month that ratepayers will get, as a result of this fine work.”
Auckland’s mayor says the saving to ratepayers will amount to a can of beans a month. Supplied
The council opposes the cap on the grounds it is not an effective tool to provide affordability and would result in more debt.
“Auckland ratepayers are unlikely to achieve the savings estimated by central government of $2.79 a month for each household, or the cost of a can of baked beans as noted by some commentators,” council’s manager of financial strategy and modelling violet bird said in a report.
“This assessment from the government excluded Auckland Council from its calculations due to the council’s ‘moderate rates forecast’ and size.”
Ratepayers ‘fed up’, Luxon says
Prime Minister Christopher Luxon previously said ratepayers were “fed up”.
“They’re tired of having to prudently manage their own budgets while rates continue to go up, only to see their local council fail to demonstrate the same fiscal discipline.”
He said the government was not considering allowing councils to raise revenue through a levy on tourists, like a bed tax.
“We want councils to be focused on the money that they’ve got and make sure they’re doing a much better job of managing it. Some councils are doing a really good job, some councils are doing a very very poor job.”
Consultation on the changes opened immediately, and was set to close in February 2026 with the legislation expecting to be passed by the end of that year.
In December, the government announced it wanted councils to limit rates rises and more detail was released later that month, leaving councils a short runway to prepare a response.
The rates rise cap would likely start with minimum increases of two percent and a maximum of four percent, with the cap taking effect from 1 January 2027.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
