Chamber calls for 0% rates rise
WHITEKNUCKLED businesses need the relief of a 0% rates rise, Otago Chamber of Commerce chief executive Dougal McGowan says.
He led a rush of lobbying for scrapping a proposed 6.5% rates rise at the first day of hearings on the Dunedin City Council’s proposed 202021 annual plan yesterday.
‘‘These are unprecedented times — businesses are really hurting,’’ he said.
‘‘We are going to see significantly more — a rise in unemployment — but the pressure on the people and the business owners is quite considerable as they look for every single option they can as they try to keep their businesses open and people employed.’’
He said ‘‘the most significant downturn for the economy in some time’’ required the council to support an economic recovery plan.
To hit a 0% increase in the rates requirement the council should up its debt level, sell down noncore or nonstrategic assets, including the Waipori fund, and review what was essential and the way it was delivering services.
‘‘Very quickly — within a month — we know that the world and all that is in it is quite a different place.
‘‘During that time we have seen businesses closed for at least four weeks for most, and probably longer for many.
‘‘We have seen people on reduced incomes, and significantly reduced incomes for others.
‘‘And we are seeing probably one of the largest growths for unemployment for our generation, and we will see that continue to go on,’’ he said.
Federated Farmers senior policy adviser David Cooper said for the council to review spending to allow for a 0% rates rise would ‘‘be a powerful signal to the community’’ that the council was aware of the issues many were going through.
Pulling back on increased levels of service, making greater use of debt, and other operational expenses — including natural attrition of staff should be considered — he said.
Grey Power Otago president Jo Millar asked for a deferral of the rates rise for 12 months.
‘‘We have a great fear that many of our people, rather than getting into debt, or asking for deferment of their rates etc, will sell their houses and start getting into rental accommodations, which may be beyond their means.’’