Ratepayers in Southland's tourist town, Te Anau, are frustrated and disappointed by the Southland District Council’s (SDC) proposed rates increase. 

The SDC has proposed an average rate increase of 9.22% under its 2022/23 draft annual plan. And although it is almost 11% higher than the 8.31% originally planned for, there is currently no decision to seek further public consultation before its introduced in June this year. 

John Turner, business and landowner in Te Anau, said he was frustrated by rates increases given the economic impacts that Covid-19 has had on the community. 

“It’s irresponsible for the council to be doing this in the current climate. What they should be doing is cutting the cloth and charging people according to their income.”

“The council need to be living within their means, everyone else has had to do it. They need to spend more money on infrastructure instead of spending it all on bureaucracy.” 

Turner said the council needed to rethink the rates rise, especially given the economic situation for many ratepayers across Southland. 

“People have been doing it tough recently and the council, they’ve been immune to that. They definitely need to reconsider.” 

Nigel Humphries, co-owner of Anchorage Motel in Te Anau, said commercial accommodation providers would be especially hard hit.  

“Covid is still around, and we have to tighten our belts considerably just to get through this period. There just seems to be a lack of empathy for the accommodation sector. Bit of a whack considering our income revenue streams are way down.” 

Humphries estimated that while his business was 65% down in revenue, his current rates increase would be closer to 14%, not helped by the 27% increase in the pan [toilet] charge.

Humphries said he thought the council had listened to feedback on rates increases during a submissions process for the draft annual plan last year, but this hadn’t been reflected in the recent announcement. 

“We realise these things have to be paid for [by the council], but the increase is substantial, it adds up.” 

“There’s a lot of frustration. The attitude is “this is what we are going to do”. What about us as operators?”

It was unrealistic to expect accommodation providers to offset increased rates by upping room prices, given the lack of bookings and need to attract domestic tourists, Humphries said. 

“We are facing a situation where we have a lot of units sitting around empty and we are having to pay more. We just want them to listen and at the moment it’s just a closed door.”

He said he hoped SDC would consider adopting differential payment for accommodation providers. 

"I really hope they will reconsider. We are just hoping to see a bit of compassion, a bit of empathy," he said.

Birchwood Cottages and Fiordland Hire owner Ray Horrell said the rate increase was "absolutely gutting and to lessen the burden of the rates would be the right thing to do."

"It's away over the top."

"[SDC] have to live to an affordable budget, that everybody else can afford as well," Horrell said.

SDC Mayor Gary Tong conceded COVID-19 had changed the landscape so much.

"COVID has affected everyone's lives and it comes at a great cost," he said.

"It's tough on people."

However Tong said there were a lot of time factors to be considered, including discharge consents running out.

"It came down to not kicking the can down the road any more."

"We’re stuck between a rock and a hard place, we’re doing what we can for the communities based on what they have asked for in the long term plan."

"Early indications I have at the moment is that the communities need to progress," he said.

Delaying or reprioritising projects would require public consultation but Tong said "To go out and consult now just wouldn’t be cost effective".

"[The communities] can't sit back and wait for COVID to bugger off, or prices to come down, that would just be too late," he said.

SDC councilors meet on Tuesday (29 March) and Tong said it would be an interesting discussion.