Rates relief plan approved

New Plymouth residents and businesses can apply for a rates holiday under a plan approved by the district council.

Yesterday, New Plymouth District councillors discussed the first step in their recovery plan for the region at a video conference meeting.

It includes removing penalties for late payment of rates for the next 12 months; offering rates holidays for six months with a ‘‘very low’’ interest rate on deferred payments; and postponing one year of rates payments for up to three years, with a ‘‘low’’ interest rate on deferred payments.

‘‘Low’’ interest reflects the council’s average borrowing rate, while ‘‘very low’’ is one per cent below that.

There are some exceptions and conditions, including an independent verification that income had declined due to restrictions put in place to contain the spread of Covid-19.

Senior policy advisor Greg Stephens said at the meeting council staff would work with people to determine the approach that best suited them.

By the end of last month, staff had fielded around 100 calls and requests for rates relief following the coronavirus lockdown, and approximately five additional requests were coming in per day.

This number was expected to increase.

Mayor Neil Holdom said they were facing an economic crisis on a scale those of his ‘‘vintage’’ had not seen.

The plan was in line with what the

Government had requested of banks for mortgage holidays and aligned with the financial response from the Government, he said.

Councillor Harry Duynhoven said it was not about removing the requirement for a businesses to pay rates, but helping them to recover without affecting others.

‘‘We all want to be the first and fastest region to recover.

‘‘If you’re buying from a local business, obviously you’re helping that business survive.’’

Councillor Amanda Clinton-Gohdes said this first step would support the community not just to recover but to regenerate, while deputy mayor Richard Jordan said he supported the proposal but cautioned to pay rates on time if possible, as it would compound and not go away.