Queenstown Lakes District Council’s (QLDC) proposed double-digits rates increase received condemnation from community representatives at Monday’s (May 22) hearing of submissions on the annual plan.

Ratepayers in the district are facing a proposed average rates rise of 13.6 percent in the draft annual plan 2023/2024 - more than twice as much as last year - in part to fund recent building defect and weather tightness claims made against QLDC.

Albert Town Community Association (ATCA) chairperson Heather Thorne told councillors and staff that a rates increase of that size would drive people to leave the district. 

“As a council it is your responsibility to balance the books,” she said. 

“However It is also your responsibility to have a social conscience and consider the huge implications such an increase has on the daily lives of residents.

“A 13.6 percent average rates increase will be a very difficult financial burden for many Albert Town ratepayers, a large majority of whom are young families already struggling with ever increasing mortgage rates, food and fuel costs, and price increases for everything involved in day to day living.”

Heather said the demographic of the area included families, middle income earners and the elderly, and workers in important roles like trades, teaching, law enforcement and healthcare.

Costs have increased so much that for some, it will be the last straw, she said: “They will pull the pin and leave.”

Hāwea Community Association (HCA) acting chair Cherilyn Walthew said if the rates increase goes ahead unchanged Hāwea rates will go up by 12.19 percent.

“A lot of people have been saying that seems really, really high, given the increases in recent years and the limited public facilities we actually have in Hāwea.

“We understand that much of the driver around that is restructure of council debt,” she said. 

“However we don’t really feel that it’s right that we are paying the debt that we didn’t actually [create].”

QLDC chief executive Mike Theelen said the council had worked hard to minimise the size of the increase and said the council is facing “considerable” cost increases from factors like increased interest rates and high inflation.

The council must adopt the annual plan 2023/2024 by the end of June. 

PHOTO: Supplied