Queenstown ratepayers 'shouldering the burden' of NZ tourism cost

Thursday, 28 June 2018

Queenstown Lakes Mayor Jim Boult is disappointed with central Government's 'lack of traction in recognising the important role that our district plays as the focal point for New Zealand's largest industry'.

Queenstown Lakes ratepayers are carrying the financial burden of New Zealand's tourism industry as close to $1 billion is earmarked for upgrades over 10 years, the region's mayor says.

The district council adopted the plan covering the 2018-28 period on Thursday, agreeing to an average overall rates increase of 6.89 per cent.

Boult is overseeing a $385 million work plan to revitalise the centre of Queenstown and millions more for regional infrastructure.

Jim Boult said the council had a strong mandate from the community to 'get on' with dealing with the challenges of 'blindingly fast growth'.

He was disappointed with central Government's 'lack of traction in recognising the important role that our district plays as the focal point for New Zealand's largest industry'.

Queenstown Lakes ratepayers are paying to 'sustain New Zealand's jewel in the tourism crown', the mayor says.

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'Our district should not have to shoulder the burden of this on its own.

'In effect, our ratepayers are paying to support the New Zealand economy and sustain New Zealand's jewel in the tourism crown. This does not sit at all comfortably with me.'

He assured councillors he would not 'shy away' from the ongoing conversations with central Government.

By adopting the plan unanimously, the council committed to a capital expenditure programme of $990m, about 2.5 times higher than the previous planned programme worth $380m.

Most of the money will be spent on infrastructure. The largest project is a $385m plan to revitalise the Queenstown town centre, including a new council building and a $150m bypass for the town centre, which is reliant on $119m being provided by the NZ Transport Agency. The agency is expected to make that decision in 2019.

The Queenstown Town Centre Master Plan may also include parking, public transport, street upgrades, and walking/cycling facilities.

The central Queenstown business zone will fund 65 per cent of the cost of the Queenstown Town Centre Masterplan. The remaining 35 per cent will be recovered from Wakatipu ratepayers.

The biggest shifts will be felt by high-end commercial ratepayers in the Queenstown town centre. A property with a rateable value of almost $22 million will face a 30.34 per cent, or $22,000, increase. An accommodation provider in the Queenstown town centre with a rateable value of $42.5 million will pay a rates increase of 19 per cent, or $55,000.

Following public consultation, the council agreed to an increased investment of $3.7m in active transport networks in the Wanaka area, which is subject to detailed business cases and confirmation of additional NZTA funding.

Boult assured Upper Clutha residents they had not been forgotten in the plan.

'While we have had to get the Wakatipu race ready, we already have the mechanics turning their attention in your direction,' he said.

Nobody commented on the plan in the council's public forum but there were 586 public submissions on the plan and a record 115 individuals and organisations addressed the panel.

Boult said there was 'almost a clean sweep of support for the big issues'.

In a more controversial decision, the council agreed to recommend a proposed 400-lot Special Housing Area in Hāwea.

It received 183 comments on the plan and several residents of the small town on the outskirts of Wanaka spoke against the plan at Thursday's meeting claiming it would not result in affordable sections as suggested by developer Lane Hocking and was inappropriate for the area.

Three councillors voted against the proposal but the majority said it would provide affordable sections that were desperately needed for families and first home buyers. The plan still has to be accepted by the Minister of Housing.

The council also approved a new waste management and minimisation strategy that will include the introduction of three wheelie bins in Queenstown and Wanaka from July 1 – one for waste to landfill, one for glass recycling and one for mixed recyclables.

The shift from a two-bin system meant glass could be more easily recycled.