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THURSDAY SEPTEMBER 4 2025
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SEPTEMBER 4, 2025
Rates cap – yes and no Rodney Dow
By Chris Gardner
Ōtorohanga and Waitomo mayoral candidates are split on whether council spending should be capped when it comes to setting rates. Local Government minister Simon Watts floated the idea of a rates cap at the latest Local Government New Zealand conference and is now working on a policy. The Government wants councils to stick to the basics like rubbish, roads and pipes and abandon “fanciful” projects. This financial year Waitomo District Council would have escaped a five per cent rates cap with a 2.91 per cent rates increase, while Ōtorohanga would have had the brakes applied and not have been allowed to increase its rates by 10.16 percent. The News asked Ōtorohanga
Janette Osborne
John Robertson
Richard Ross
Natasha Willison-Reardon
and Waitomo mayoral candidates to share their opinion on council spending over the last decade and rates capping in no more than 100 words. Only one of Ōtorohanga’s three mayoral candidates, Rodney Dow, responded to The News. “I don’t believe rates capping is necessarily the answer,” Dow said. “I understand rate capping as our family business have rates capped by the meat processors. To operate with or without rates capping you need to be careful and prudent with your operating costs. Rate capping could result in less services and infrastructure not being done in a timely manner. “Comparing Ōtorohanga and Waitomo rates from a capping viewpoint is not really comparing apples with apples. The comparison of properties of
a similar value in Ōtorohanga with Waitomo; the rates alone in Waitomo are around double what they are in Ōtorohanga.” Incumbent Waitomo mayor and candidate John Robertson was not in support of rate capping either. “I worry that rates capping will just mean further bureaucracy and cost to implement it,” Robertson said. “Waitomo has kept the average rate increase at the CPI for the six years that I have been mayor, so under my leadership rates capping is not needed. In the 18 years from 2000 to 2018 however, Waitomo had the highest average rate increases in the country.” Waitomo mayoral candidate Richard Ross said: “On central government’s rate cap, it makes for a good headline, but without detail it looks more like politics than policy. “If we don’t manage our
own council spending, the Government could step in with measures like a rates cap. But that would likely end up costing ratepayers more, because I can’t see how a rates cap would actually work in practice.” Waitomo’s other mayoral candidates, councillor Janette Osborne and Natasha WillisonReardon were supportive of rates capping. “There is merit in a rates cap on non-core spending, but for essentials it’s more complex,” said Osborne. “Ōtorohanga’s 23-24 rates were $13.6m and Waitomo’s $21.1m — so a flat percentage cap is unfair. “Costs for bridges, water and civil works rise faster than CPI. Capping core services risks under-investment, forcing costly catchups later. While I wasn’t on council when major projects like the $10m water resilience
scheme were approved, I believe stronger scrutiny should have been applied, tougher questions asked, alternatives explored, and the public consulted before the council approved the project in October 2022.” Willison-Reardon said: “A rates cap may ease pressure short term, but smarter solutions are needed. I’d look to innovation through shared services, digital efficiencies, and regional revenue opportunities. Working with neighbouring councils and central government can unlock better value without overburdening ratepayers. Financial strategies must focus on sustainability and transparency, so people see how every dollar contributes to community wellbeing. That ensures fairness and stability for everyone.” • See more election coverage on pages 11 and 12.
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