AUCKLAND’S COUNCIL’S RECORD RATES INCREASE

‘Auckland Council doesn’t have a revenue problem – it has a spending problem’

In full cry at the 3 February Governing Body meeting (screenshot from the Youtube video)

The following is a transcript of my speech at the 3 February meeting of the Governing Body ,regarding council’s response to Government’s rate capping legislation 

Link: https://youtu.be/3ZGWIDLChxg?t=8135 (approximately 2:15 to 2:22)

“I think we have to be very careful about getting into a parallel universe situation here, where we, Auckland Council, the ‘Super City’, become very defensive if the government – even by implication – questions our financial management. I think that would be unwise. The wording of this submission is unwise in my view, in the way it is dismissive of the Government’s attempt to respond to growing public concerns about out-of -control rates – not just in Auckland by across New Zealand.

“We could well be out of step – and out of touch – with the public. The Government is facing an election and so it is obviously very aware and understandably sensitive about how people feel about council rates. And well it might be. People are fed-up with the  ever increasing cost of rates and the diminishing return the people of Auckland in particular, are getting for those rates. This very much suggests we have a systemic problem in this council which we appear to be in denial about.

This council over the last ten years has taken about $15 billion in rates. We intend to take another $3.2 billion in the coming year. People are being squeezed. Of course there are all sorts of other charges as well. Watercare charges for one which like rates always go up.  There is a real cost of living challenge that our people are facing, including the costs of groceries and of power. Interest rates can be a real concern for the public. Mortgage interest rates can be a real concern when they go up but they also go down. Council rates never go down. They always go up and up. And what the public get back for them seems to be less and less.

Throughout this Council submission there are many references to the strategic challenges we are facing, infrastructure, transport, rail and so on. These are big ticket items, no doubt about that. But our record here is troubling. Councillor Williamson talks about the charges the Government directly or indirectly imposes on us. That’s a fair point but we never push back.

A good example are Kiwi Rail’s access charges. This situation does not reflect on Kiwi Rail as much, as on us. Since 2021, we have had 595 days of rail network shutdowns, 180 full days with no services at all. And over the same time, going back five years, this council was paying Kiwi Rail $35 million a year for access, essentially rent to the landlord. Now we are paying about $92 million a year. And we have now agreed to increase that by another $10m. It is like the house we are renting has rooms that are not serviceable, but we still happily, without question, without pushback, without challenge, continue to pay more. In fact, people in here have stood up and tried to justify this. 

[ Not to forget that over the same period as a consequence of these shutdowns , our rail patronage has collapsed from 21 million trips per annum to  in early 2020 to 13.7m trips per annum last year.]

 But it all comes back to the ratepayers who have to pay this for this.

I think we need to own that we have a fundamental problem here rather than the Mayor talking about the cost of cans of baked beans and other nonsense. In this submission we should be saying, yes, we recognise there is a problem with respect to our costs, and we are serious about working with you on solving it. But no, we will not say that. We are in denial. 

The fact is, given the enormous amount of money we have been collecting from householders and the enormous amount of money we have been spending, Auckland Council does not have a revenue problem – it has a spending problem. And the people of Auckland, I understand about 75 percent in public opinion polls, have had enough. It would be wise for us to listen a little more carefully, rather than getting into denial and living in a parallel universe. A state of affairs that cannot last for much longer.

This article was published in the March 2026 issue of Ponsonby News.