Auckland City Rating fail as Goff’s attack on accommodation businesses fails

Exemptions have already stripped more than a million dollars off expected earnings from Auckland Council’s rate on tourist accommodation.

The controversial rate was anticipated to bring in an extra $13 million in revenue but $1.2 million has already been shaved off.

The council said of the 2999 affected properties, 1291 owners had so far sought exemptions or reductions in the rate.

The extra rate was devised by mayor Phil Goff as a way to fund half of the city’s tourism promotion costs.

The council said 552 exemptions totalling $1.05 million had been approved for owners that have fixed price contracts with the operator running their property.

Sixty one objections to the accuracy of property information have led to a further $144,452 in reductions of the amount charged.

A further 739 are in the pipeline and rising.

A group of accommodation owners is still considering whether to challenge the legality of the targeted rate.

Add the cost of fighting the case in court as well as the admin in setting it up, implementing and chasing late payers, and you’ve got yourself a complete fail.

Phil has a huge problem.  He can’t do a thing.  All the money is spoken for, and he can’t generate a meaningful new stream of income for the council.

But don’t laugh too hard.  At some point the only solution is for the general taxpayer to come bail Auckland out.   “Too big to fail”.  I claim it as being the first to say it in this context.

Perhaps Phil can’t wait for a Labour-led coalition to be announced.  Can you  just imagine all the favours he will call in?

 

– RNZ


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

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