The challenge for Little is to deliver

The Post reports:

Wellington mayor Andrew Little has given a personal pledge to bring down the city’s commercial rates differential but doesn’t yet know if he has the council backing he will need.

Shouldn’t be hard. The six independents should all be in favour. Little makes seven. He only needs one Labour Councillor with him to do it.

“But I accept it has got out of whack.” He added, that dropping the commercial multiplier could mean a “significant” increase in residential rates if care was not taken.

“That’s why getting spending under control is so important,” he said.

Yep. You need to restrain spending to be able to change the differential.

The Herald points out:

Residential properties are charged a base rate, while commercial and industrial properties are charged 3.7 times that level.

It equates to the capital’s commercial ratepayers being charged $20,000 more on average than those in New Zealand’s other main centres.

Businesses are covering about 48% of the city’s rates burden in Wellington, compared with Auckland and Canterbury where that number is closer to 30%, according to analysis by the chamber.

This is part of why so many businesses have shifted to Auckland or closed down. If we want a vibrant city, we need an affordable city.

The post The challenge for Little is to deliver first appeared on Kiwiblog.