ECan rates to rise by 17.9%

Thursday, 27 June 2024

Environment Canterbury (ECan) has approved an average 17.9% rates increase for this year and is considering a 15.5% rise for next year.

Three councillors - Claire McKay, Deon Swiggs and Nick Ward - voted against the council’s 2024-34 long-term plan (LTP), which included the rates rises, because it contemplated $110 million in new borrowing to cover operational spending.

Swiggs and McKay likened the borrowing to buying groceries with a credit card and called it unsustainable.

The remaining councillors voted for the plan, with most holding their noses about the rates rises.

Councillor David East was credited by some councillors as being the “grumpy old man” whose objections about the rates rise persuaded them to shave spending.

The proposed increase bounced around as plans were drafted and updated. At one point, rates were projected to rise by 15%, then 34%, then 24% and came to rest at 17.9%.

East favoured a rates rise closer to 15%, but voted for the plan anyway. “It is what it is and where we are now,” he said.

Based on a typical home in the Christchurch suburb of Burnside with a capital value $820,000, a 17.9% rates rise would push ECan’s annual invoice from about $615 to more than $700, or about $1.60 more a week.

The borrowing will cover some spending that is mandated but not funded by Parliament, including an update of the Regional Policy Statement.

It is mandated by the Resource Management Act and two rounds of public consultation have closed. It is due to be notified about Christmas, with submissions, hearings and appeals to follow.

The statement will have “intergenerational benefit” and it was appropriate that future generations pay for some of it, councillor Grant Edge said.

It was “manageable short-term debt” mainly being used to deliver key documents, rather than infrastructure, Edge said.

That approach “is burdening future generations with operational costs from today”, Swiggs said. “It's just something that I can't agree with.”

Many councillors called for better funding for councils.

Councillor Peter Scott, nominally chairperson but standing aside from the role due to an investigation into consents on his South Canterbury farm, said two senior Government people told him recently that the “South Island was underfunded”.

That was a reference to transport spending by the coalition Government, but public transport is a big part of ECan’s responsibility.

The final rates rise for next year, 2024-25, will be decided later.

(Note: Comments are moderated in work hours and may not appear immediately.)