Critical services relied on by Porirua residents, including public transport and flood protection, could be compromised if the Government proceeds with its proposed rates capping model, Greater Wellington says.
In a submission to the Government, Greater Wellington has warned the proposal fails to reflect the real costs councils face and could limit their ability to maintain infrastructure and respond to natural hazards.
Greater Wellington chair Daran Ponter said while the council understood the intent of easing pressure on ratepayers, the model risked undermining essential services.
“This model will ultimately harm the very communities it seeks to protect,” Ponter said. “A blunt cap will undermine our ability to protect our communities and deliver the essential services they need.”
The submission argues that the proposed benchmarks, Consumer Price Index and Gross Domestic Product, do not align with council cost drivers such as construction inflation, insurance premiums and financing costs, which often rise faster than general inflation.
For Porirua, those pressures include ongoing investment in regional public transport services and flood protection infrastructure designed to reduce risk to homes, businesses and transport corridors.
Greater Wellington said a proposed maximum cap of 4 percent would make it harder to fund major long-term projects and adapt infrastructure to climate change, increasing exposure to flooding and slips.
Finance, Risk and Assurance Committee chair Yadana Saw said using inappropriate benchmarks would create growing funding gaps over time.
“Ever-expanding funding gaps will expose communities to harm from natural hazards, as well as economic decline through the degradation of public transport,” Saw said.
The council’s submission recommends replacing the proposed economic indicators with measures that better reflect council cost pressures, recognising asset condition as a core indicator, and introducing a more flexible model with independent oversight.
It also calls for public transport spending to be excluded from the cap, or for rates increases aligned with NZ Transport Agency cost indices to be allowed, reflecting costs largely outside council control.
Public Transport Committee chair Ros Connelly said public transport accounted for about 63 percent of the council’s operating expenditure.
“A rigid cap would leave us choosing between service cuts, pushing more costs onto users, and creating more reliance on cars,” Connelly said. “None of these are acceptable choices for community wellbeing, economic health, or climate sustainability.”