No rate rise call to cushion coronavirus blow

An Invercargill City Councillor wants the council to commit to a zero per cent rate rise in a bid to cushion the blow during challenging financial times.

Speaking at an extraordinary meeting on Tuesday night, finance and policy chairman Nobby Clark asked that the council acted now to ensure there would be no rates rise for the 2020/2021 year.

‘‘If you look at what the community is facing, there seems to be a reasonable amount of support for lower-income families and not a lot of support for middleincome earners. Some people are reducing 75 per cent of their income.’’

‘‘The financial impact we are facing now is not just during the duration of the lockdown, it will be much longer than that.

‘‘It is my personal opinion that we should have a zero rates rise. We should make a positive statement now that there will be no rates rise.’’

The long-term plan suggested ratepayers would have a 3.5 per cent rates increase for the year 2020/21. Although a report from council staff earlier this month indicated an 8.5 per cent rate increase would be needed.

At the time Clark said council should reduce costs, sell some assets, or dip into the council’s cash reserves to help ensure the rates rise did not go above the 3.5 per cent figure.

On Tuesday he went one step further with the call for no rates increases at all.

In response to Clark’s push, other councillors suggested that while limiting a rates rise to below the 3.5 per cent could still happen, now was not the time to rush into doing that.

Council’s strategy and policy manager Rhiannon Suter presented a report at the meeting which recommended that council does not formally consult on the 2020/21 annual plan given the Covid-19 crisis was overwhelming the community.

The report says the council will adjust its programme to ensure there were no significant or material differences from year three of the 2018-2028 long-term plan.

Just Clark and Mayor Sir Tim Shadbolt voted against the recommendations.