Christchurch mayor says keeping rate rise to promised 4% will be 'very challenging'
From reporter Steven Walton:
Christchurch mayor Phil Mauger says achieving an election promise of keeping rates low will be “very challenging” in a difficult global environment of high inflation and rising interest rates.
His comments come as councillors begin work on next year’s Christchurch City Council budget.
Councillors have been briefed about it twice behind closed doors, and it is expected that a public briefing will be held before the end of the year.
Mauger, who was elected last month, campaigned on keeping rates affordable. He has indicated that he wanted annual rises set between 3 and 4%.
Asked last week if that was still achievable, Mauger joked, “Haven’t you got any other questions you can ask me”, before adding: “It is going to be challenging, that’s going to be very challenging because of what’s happening globally.”
The council was under “lots of pressure” from inflation and interest rates, Mauger said.
Annual inflation hit 7.2% back last month while interest rates are expected to rise with the Reserve Bank raising the official cash rate by a record amount last week.
The council has already faced cost increases this year on three large projects: the Te Kaha stadium (an extra $150 million), the Court Theatre (an extra $16m) and the Hornby pool, library and service centre (the overrun amount has not been released publicly).
Mauger said at a public meeting last week the council had to cut its cloth because it was “heading into a bit of strife”.
Earlier this month, councillors were given an “indicative range” for next year’s rate rises – understood to be between 12 and 14% – but this is simply a starting point that will change as it does not account for any changes to deal with inflation and rising interest rates.
“This was in essence a risk check for the council to show the potential impact of these external factors on our operations,” said Leah Scales, the council’s resources general manager and chief financial officer.
Clearer indications of potential rate increases would be released during upcoming public briefings and consultation, she said.
Mauger said he expected work on a “line-by-line” review of the council’s budget to start before Christmas.
“In the past we might’ve done 10 things for a million dollars, now we’re going to do seven and we’ve got to decide very carefully which three dip out.”
Those decisions would involve staff advice and councillors voting, he said.
“I can’t give you any examples because I haven’t seen the line-by-line yet, but there will be things on [the budget] and you go ‘is that totally necessary at the moment?'”
Mauger said things would not get to a point where, for examples, libraries would be shut. He also said: “If it’s an absolutely knackered sewer pipe, you’ve got to fix it.”
Instead, he wanted to cut out the nice-to-haves and suggested a planned upgrade for Gloucester St as an example.
“Say we go into a recession, we can still drive down that road now. They’re the sort of things that you’ve got to say, ‘let’s be a bit careful’,” he said.
At a council meeting last week, Mauger also pushed to reconsider the timing of a $6.2m upgrade to Addington Brook – a stream that runs through South Hagley Park.
Another project on his radar was a $33m makeover to roads around the stadium, but he said last week he was now looking at it differently.
Some work was underground infrastructure and could not be delayed, while the Government was also likely to contribute $11m, he said.
“It’s still a lot of money, but it’s slightly more digestable,” he said.
Poll: Is the increase in disability parking fines fair?
In October, the fine for parking in a designated mobility car park without a permit has jumped from $150 to $750—a 400% increase!
The goal is to keep these spaces open for those who truly need them. Do you think this big increase in the fine is fair? Share your thoughts below.
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89.4% Yes, it's fair
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9.9% No, it's unreasonable
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0.7% Other - I'll share below
House fire causing road closures
Pages Road is closed this afternoon from Breezes Road, this is due to a house that has caught fire in the area.
Coastal Ward Community Board member, Alex Hewison, shared the closure on a local Facebook page.
Fire and Emergency are at the scene but further details have not been shared at this stage.
Avoid the area where possible.
Have your say on Canterbury’s public transport
By David Hill, Local Democracy Reporter
Canterbury residents are being encouraged to have their say on public transport in the region.
Environment Canterbury has released its draft public transport plan and is seeking submissions.
The draft plan outlines a vision for public transport in the region and notes key priorities such as improving the environment, growing patronage, accessibility, innovation and technology, and affordability.
‘‘Public transport takes many forms with communities across our region,’’ councillor Peter Scott said.
‘‘With limited funding available, we need to make sure we make the best decisions to deliver a public transport network that is integrated with urban development, innovative and meets the needs of new and existing customers.
‘‘Effective public transport is the lifeline that connects us to work, school, recreation and our friends and family, so it is important we get this right.’’
The Canterbury’s population is growing and by 2050, it is projected 700,000 people will be living in Greater Christchurch.
The draft plan covers public transport for the region, which includes the Metro service (Christchurch, Selwyn and Waimakariri), MyWay by Metro in Timaru, Total Mobility and Community Vehicle Trusts.
It was developed in partnership with local councils and Waka Kotahi NZ Transport Agency.
Environment Canterbury has been planning to step up its public transport efforts by increasing the frequency of existing services and introducing mass rapid transport in Greater Christchurch.
But these plans have been stalled by a lack of public transport funding in the Government’s 2024-27 National Land Transport Programme.
A proposal to allow people to travel with domestic pets is also included in the draft plan.
Having pets on buses has been successfully trial in other parts of New Zealand, councillor Joe Davies said.
‘‘We’re keen to understand what controls are needed for our bus users in Greater Christchurch and Timaru to be comfortable with pets on public transport.
It is proposed to allow adult passengers to bring a single pet on board, as long it is in an approved carrier at off-peak times, weekdays between 9am and 3pm or after 6pm, and during weekends.
Another proposal would loosen those restrictions in future to allow for leashed and muzzled dogs and increasing the limit to two pets per passenger.
‘‘We want to gauge how people feel about these proposals. Now is the time to have your say,’’ Davies said.
Submissions close on Thursday, October 24.
■ LDR is local body journalism co-funded by RNZ and NZ On Air.
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