Are Porirua City rates high?
- Last year the New Zealand taxpayers Union put out a comparison of average residential rates in all our city councils.
- Porirua is one of six urban city councils, others being Hutt City, Invercargill, Napier, Palmerston North and Upper Hutt.
- These average residential rates show that compared to the average of the other five cities, Porirua is 35.7% higher.
- If your home value in these other cities resulted in rates of $3000 then Porirua rates would be $4071
Are lower income homeowners and renters disadvantaged if they
live in Porirua?
Are lower income homeowners and renters disadvantaged if they
live in Porirua?
- As an example, a tradesperson earning $70,000 pa would pay tax of $14,000 leaving a balance of $56,000 to pay housing, food and family costs. That equates to 7.2% of income going to rates whereas other similar cities would pay 5.3% towards rates.
- Our rating policy puts a heavy burden on lower income home owners and will drive them out of our city to lower rated places.
- Such rating levels lower the ability to service a mortgage and mean that a homeowner in these circumstances can service $25,000 less on their mortgage.
- If you are not a home owner but pay rental, then for the same rated home, almost $90 per month of your rental is going in rates!
The impact of high rates on our community
- High rates impact the most on lower income people and that means they will struggle the most with home ownership costs.
- People living in rented accommodation will find it more difficult to transition to home ownership (creating a climate where residents can transition to home ownership should be a basic right).
- The extra rates we pay in Porirua City is money taken at the expense of food, schooling, childcare for many families.
- The taxes we pay are set on a fair basis for all, however rates are particular to each community and in Porirua we should have rates that are closely comparable to other similar Urban cities in New Zealand.
- A high level of rates unfairly impacts on lower income homeowners while those on better incomes can afford them. This creates divisions within Porirua City residents, polarises home ownership and is not in the interests of building an inclusive society.
We need to build an inclusive Porirua City
I love the mix of ethnic groups which makes for a rich and rewarding city full of variety and ideas.
The larger families are a real benefit and as a grandparent I want to see us build a city that will provide jobs for our youth so they can be a long-term part of Porirua.
We all benefit from the mix of cultures, the diversity such people bring to our lives and the associated vibrancy.
As a city of the future we want to be defined by how such a wide range of people can live together, each benefiting from what others are able to teach us. We already have a very compassionate city, however we need to enhance and build upon all our people, rather than policies which disadvantage those without strong financial resources.
Over the next months I will comment on my reasons for concern about councillors choices, along with options for a better Porirua.
Chris Kirk-Burnnand