The Central App

Grey Power members struggling to absorb rates

The Central App

Aimee Wilson

14 August 2024, 5:15 PM

Grey Power members struggling to absorb rates Central Otago Mayor Tim Cadogan speaking at the quarterly GreyPower meeting in Alexandra yesterday. PHOTO: The Central App

Grey Power has warned the Central Otago District Council that at some stage people will just stop paying their rates, because they simply cannot afford them anymore.


A second Grey Power Central Otago meeting to discuss rates was held in Alexandra yesterday, and this time Central Otago Mayor Tim Cadogan brought the chief executive Peter Kelly with him.



The first public meeting back in June attracted about 150 people and was chaired by former ACT MP Gerry Eckhoff, and attended by MPs Todd Stephenson and Joseph Mooney.


This time only 30 people were at the meeting, but there were still plenty of questions and the council focused on what it was trying to do to bring the rates down, through districtisation.



The community is being asked whether a district-wide approach should be adopted so that charges for services will be the same in each of the wards (Vincent, Cromwell, Maniototo and Teviot).


“I’m a mayor that could do without another headache,” Tim Cadogan said to the meeting, before explaining why districtisation was so important right now.


With further rates increases likely in coming years, it was a discussion that needed to be had, with a final decision being made by council on September 25.


One question that was asked was how the council planned to make sure rates were affordable for people on fixed incomes, and Mayor Tim said by telling central government “you just can’t keep loading stuff on us that we can’t do”.


“We are continually in the Government’s ear saying stop doing things, and I think they are starting to listen,” he said.



New testing for drinking water standards that haven’t been needed up until now, was one example.


“At some stage there will be people that can’t afford to pay it full stop,” one member said.


The council was then asked what level of debt there was from people already not paying rates.


Mr Kelly said the arrears were not as high as people thought, and some were now using direct debit payments weekly to lighten the load.


“While we’re not seeing anything so far, it might be that people are turning off a heater or going without a meal, and that worries me sick,” Mayor Tim said.


Public sessions on districtisation are being held throughout August, with the next one in Cromwell on Monday, August 19 from 7pm-8pm at the Presbyterian Church.


There will also be a district-wide meeting on Tuesday, August 27 from 7pm-8pm online for those who may have missed the other ones.