Councils are struggling with costs. Is charging rates on Crown land the answer?
By David Hill, Local Democracy Reporter
As councils struggle with rising costs, a North Canterbury mayor has suggested charging the Government for rates on Crown land.
Some councils are also looking at hotel bed taxes and congestion taxes to raise much needed revenue, but Hurunui mayor Marie Black said she would rather see the Crown paying rates like other landowners.
The Department of Conservation (DOC) estate made up a significant proportion of the Hurunui district’s footprint.
"We have to maintain access, so we believe the Government should be paying its share.
"When you look at Lake Sumner Rd, it costs the ratepayer to maintain it and you have DOC land at the end of the road not paying rates."
However, Black said she would not want to see local schools adversely impacted by a such a rates policy.
Conservation land is generally not rateable, and any introduction of charges would require a law change, a DOC spokesperson said.
Many councils are feeling the pinch of rising costs, while also under pressure to keep rate rises affordable.
A Supreme Court decision earlier this year paved the way for Auckland and Queenstown Lakes District councils to introduce a hotel bed tax.
Meanwhile, National hinted at legislation to allow the main centres to collect a congestion tax.
Hurunui District Council chief executive Hamish Dobbie said neither tax would make much difference to his council.
"You may get some extra revenue out of tourists, but it may end up hurting local operators.
"I’m not sure whether a bed tax is the best solution. Our businesses fund our tourism promotion and that seems to be reasonably stable."
Waimakariri District Council chief executive Jeff Millward agreed, but said allowing councils to retain the GST on rates would ease the burden on ratepayers.
"There is definitely a need to have a look at the rating system to make it fairer.
"The old question is often raised whether GST should be on rates and whether it should be retained by councils.
"It would make a sizeable difference to us."
Kaikōura District Council chief executive Will Doughty said he would be keen to explore some form of local tourism levy.
The population of Kaikōura is just 3900, plus holiday homes, but there were more than a million annual visitors to the district.
"A very small additional contribution from each visitor could make a significant difference for us."
Charging rates on Crown land would also help as a large proportion of the district was under the DOC estate, he said.
"Given our small population size anything that helps ease the continued burden to the ratepayers is good with us."
A Department of Conservation spokesperson said paying rates was subject to legislation, so it would be up to the Government to decide.
"Generally, conservation land is non-rateable under the Local Government (Rating) Act 2002 and subject only to targeted rates."
Targeted rates can be set for water supply, sewage disposal or rubbish collection that is provided in relation to the land.
"So it would require a change to the law, which would be up to the Government."
National local government spokesperson Simon Watts said he was unable to comment while coalition negotiations were continuing.
■ Public interest journalism funded through New Zealand on Air.
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Poll: Should drivers retake the theory test every 10 years?
Drivers get where they need to go, but sometimes it seems that we are all abiding by different road rules (for example, the varying ways drivers indicate around a roundabout).
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Hero
“I was born and raised in war. To be honest, those are not good memories.
I really like Iran, and I really miss it, but I couldn’t be myself there. Even though my family didn’t like my decision, I left Iran. I promised myself that I would do whatever I can for all communities, especially for the kids, so they do not have the same experience I had.
I studied software engineering in Iran and left in 2006. I went to Malaysia and stayed in Kuala Lumpur for seven years. I was admitted to Lincoln University to do my PhD here, but unfortunately, I couldn’t afford the expenses. I requested a scholarship, but they told me I had to be there for six months first. So, I stayed in Malaysia and did my PhD in network security. In December 2013, I came to New Zealand with a work visa.
It took me a while to connect with the Iranian community here. I volunteered with the Multicultural Council, SPCA, and community patrol, and I established the Christchurch Iranian Society in 2017. Before that, I started working on Radio Toranj, the only Farsi-language radio show in New Zealand.
One of the reasons I started organizing cultural events was to showcase Iranian culture. I wanted to show people that we have delicious food, colorful dresses, traditional customs, and our own instruments. My hope was to show people that we are not what you see in the media.
I am working to involve all the communities that celebrate Nowruz, the Persian New Year, in the Nowruz festival in March 2025. We want to share this celebration not only with our community but with the public as well. It’s better when it’s shared.
I remember the first time someone from Dunedin called me and asked, Hero, can you help? Something happened, and they keep declining Iranian visa applications. When I heard that, I felt insulted. We are still human, so how can they do that?
Through this journey, I’ve learned a lot. Every single day, people with different cases call me, and I try to share my knowledge and guide them as much as I can.
I have received several awards, including the Christchurch Civic Award and an Award of Recognition for my contributions to the community during the pandemic. In 2021, I established Canterbury Kia Ora Academy, a charitable trust. Through this charity, I can help other communities as well, not just the Iranian community.”
- Hero
View more stories, or nominate someone: @humansofchch
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