The Taxpayers’ Union says Hastings Mayor Wendy Schollum’s admission in front of a packed ratepayer meeting that she was given a “heads up” about the impact of QV changes on rates — while the Council kept the information from the public until just two days before submissions closed — is extraordinary.

“Last night, tensions ran high, and rightly so,” said Jordan Williams, Taxpayers’ Union Executive Director.

“We have never seen such a material piece of information for an Annual Plan hidden from the public. If legally challenged, the Council would almost certainly be forced to reconsult. The cost of that alone could be hundreds of thousands of dollars — all because officials and the Mayor failed to disclose information ratepayers had every right to know.”

“At the very time businesses are closing in Hastings, commercial ratepayers are being hit with rates hikes of up to 85 percent. Now we know the Mayor had been warned about the shift in advance, but ratepayers were kept in the dark.”

The issue stems from property revaluations used to calculate rates. Because commercial property values have increased more than residential values on paper, the share of the rates burden falling on commercial and industrial ratepayers has surged.

Hastings District Council already has the highest commercial differential of any comparable council in New Zealand, meaning a commercial property pays three times more than an otherwise identical residential property simply because of its use.

Just two days before submissions on the Draft Annual Plan closed, it became clear that CBD rates would rise by 27 percent and other commercial rates by 34 percent, with some businesses facing much higher increases.

“Not only did the Mayor and council bosses know Hastings businesses were about to be absolutely smashed, they chose to keep it secret,” said Williams.

“At the meeting, the Council’s deputy CEO initially claimed he had kept the information from elected officials — but then the Mayor admitted she had been told. They cannot even get their story straight on the cover-up.”

“If the Council wants to avoid expensive litigation, it probably has no choice but to reopen consultation.”

Rates showdown tonight: Hastings businesses face rates increases of up to 85 percent

The Taxpayers' Union says small businesses and jobs are at immediate risk in Hastings following the District Council's new revelations that commercial rates are going up next month by an average of 27 percent in the Hastings CBD and a massive 34 percent elsewhere in the region. Industrial property rates are reported to be soaring by 24 percent.

Ahead of a crisis meeting scheduled for tonight, organised by the Hastings and Havelock North Business Associations, the Taxpayers’ Union can reveal that some small businesses face rates increases of up to 85 percent.

The unprecedented one-year rates hikes are being driven both by Council decisions and new valuations from Quotable Value (QV).

Taxpayers’ Union Executive Director Jordan Williams says this is the worst possible time for any rates increases, let alone of the magnitude revealed by council data only yesterday.

“Combined with the war in Iran, oil shock, global downturn, returning inflation and rising interest rates, the massive rates hikes mean dozens of Hastings businesses face the same fate as Wattie’s and McCain’s, potentially costing Hawke’s Bay hundreds of jobs,” Mr Williams said.

“When did Council chief executive To’osavili Nigel Bickle and his deputy Bruce Allan know the rates proposal in the draft annual plan would push up CBD rates by 27 percent and other commercial rates by 34 percent? Why were these impacts not put before ratepayers before now? Ratepayers expect consultation, not nasty shocks on the eve of their new rates bill."

“And when did they tell new Mayor Wendy Schollum and her councillors?"

“Who will take responsibility for this fiasco?"

“Mayor Wendy Schollum recently called on Parliament to inquire into why rising costs were forcing Hastings’ major employers to close. She doesn't need an inquiry, she needs a mirror. Skyrocketing rates are driving both the cost of living crisis and businesses out of Hastings."

“The Taxpayers' Union is hopeful Mayor Schollum fronts up at tonight’s meeting and announces how she is going to stop Hawke’s Bay businesses paying any more than the 8.9 percent rates increase she advertised and which businesses have budgeted for."

“Ratepayers need transparency about what she knew and when, and must hold her and her councillors to account.”

Tonight's Emergency Ratepayer Meeting is from 5:30pm in The Shakespeare Room at ToiToi Centre.

The Taxpayers’ Union is slamming the Government’s decision to hand councils $400 million in “growth incentives” while walking slow to bring council costs under control by capping rates now.

Taxpayers’ Union spokesperson Tory Relf said:

“Local Government Minister Simon Watts has let ratepayers down. Handing councils $400 million in additional revenue without bringing forward a rates cap means councils are under even less pressure to rein in their costs.”

“Town Halls don’t have a revenue problem, they have a spending problem. Giving councils a bailout in the form of a new taxpayer-funded subsidy, no matter how good the intent, is akin to funding more beer for an alcoholic."

"Giving councils more revenue before forcing discipline is the wrong way around."

“A rates cap should have come first. Without it, extra revenue will simply give councils more room to avoid the hard decisions."

“Simon Watts should be protecting ratepayers from runaway councils, not handing councils $400 million and hoping they suddenly discover restraint.”

Responding to reports that Waitaki District Council considered but rejected consulting ratepayers on a 9 percent rates increase option, instead only presenting options of 19-45 percent, Taxpayers’ Union spokesperson Tory Relf said:

“Waitaki ratepayers have already been smashed with a 34.8 percent rates hike over the last three years, now they are being asked to choose between increases of 19, 27, or 45 percent. While budget adjustments are unavoidable in Waitaki in order to fulfil their water delivery requirements, efficiencies could still be found elsewhere. It’s not mandated that they have to increase rates, it’s mandated that they have to invest more in their water infrastructure."

"Even so, the real scandal is that Council apparently knew there was still a lower option and chose not to put it to the public. According to unconfirmed minutes reported by the Otago Daily Times, the reason was that ‘the 9% increase might be more popular with the community but would leave less financial flexibility’. In other words: don’t ask ratepayers, because they might pick the cheaper option.”

“Minister Watts cannot keep pretending this is a problem for 2029. He has created exactly the wrong incentive. By announcing a rates cap but delaying it until 2029, he has effectively told councils to get their hikes in now. If the Minister is serious about protecting ratepayers, he should bring the cap forward and stop councils using the next three years as a last-chance spending spree."

“The Taxpayers’ Union will be writing to Minister Watts inviting him onto Taxpayer Talk to defend why ratepayers should wait until 2029 while councils like Waitaki race to lock in double-digit hikes.”

The New Zealand Taxpayers’ Union is slamming Waikato Regional Council after being blocked from speaking at Thursday's meeting on whether the council should resign from Local Government New Zealand (LGNZ).

Taxpayers’ Union Spokesman, Rhys Hurley, said:

“Waikato Regional councillors are preparing to vote on whether to keep funding LGNZ, yet they’ve refused to hear from ratepayer advocates calling for withdrawal. That’s not democracy, that’s ducking scrutiny.”

“The Rates Control Team were elected on a manifesto policy promises to leave the group - which has conveniently been scrubbed from their website. Ratepayers shouldn’t be forced to fund a lobby group that's often pushes for more spending and wanted to campaign against the proposed rates cap.”

“It’s deeply concerning that some councillors now appear more worried about protecting their own positions than delivering on commitments to reduce waste. That’s not what voters signed up for and LGNZ is not going to save these members from the upcoming local government reorganisation.”

“If councillors are confident in their decision to stay in LGNZ, they should be willing to front up and hear opposing views. Shutting down debate only strengthens the case that this membership doesn’t stack up.”

“We urge councillors to vote in the interests of ratepayers and fulfil their promise to pull out of LGNZ.”

The Taxpayers’ Union is slamming Gore District Council’s decision to hike rates by 11 percent without public consultation.

Taxpayers’ Union spokesman Josh Van Veen said:

"Gore ratepayers have already endured a staggering 46.6 percent cumulative rates rise over the past three years. Another big rates hike without even consulting the public is total affront to local democracy and underscores the urgent need for a rates cap."

"If Gore councillors want ideas of how to save money and ease the burden on ratepayers, our report 103 Ways to Save Money in Local Government lists examples of savings across all functions of councils and is on its way to councillors across the country."

The report 103 Ways to Save Money in Local Government is available here. 

Amid reports that Prime Minister Christopher Luxon has given into pressure from Auckland Mayor Wayne Brown and agreed to consider a bed tax, Taxpayers’ Union spokesperson Tory Relf said:

“Who is running this government, the Prime Minister or Wayne Brown? A fortnight ago, Brown bullied Luxon into excluding Auckland stormwater from the Government’s rates cap. Now he’s been bullied into yet another tax."

“The so-called bed tax will be disastrous for many small accommodation providers while providing a slush fund that local politicians like Wayne Brown can dip into when they run out of ratepayer money."

“In his address to LGNZ in 2024, Luxon said he was committed to getting local government back to basics. He forgot to mention that Auckland is exempt.”

Responding to news that Christchurch City Council is proposing an 8 percent rates rise, Taxpayers’ Union spokesman Josh Van Veen said:

“Delaying the rates cap will cost ratepayers across the country, and Christchurch is no exception. Rates need capping now, not three years down the road.”

“Christchurch households are paying the price for the Government’s dilly-dallying. Another 8 percent rates hike is planned this year, on top of a staggering 24 percent increase over the past three years.

“With Local Government Minister Simon Watts postponing action until 2029, councils have every incentive to load costs onto ratepayers now and lock in a higher baseline. That doesn’t just mean higher rates this year; it means higher rates every year from here on out.”

The Taxpayers’ Union is calling for Prime Minister Christopher Luxon to clarify media reports that he has struck a backroom deal with Auckland Mayor Wayne Brown to exempt the Super City from the rates cap.

Taxpayers’ Union spokesperson Tory Relf said:

“Any backroom deals between the Prime Minister and the Mayor of Auckland would totally undermine what is already a watered-down policy.”

“As it stands, the Government’s so-called rates cap is more accurately described as a ban on rates freezes. And with implementation delayed until 2029, councils have another three years to jack up rates and set a high baseline for future rate hikes. All the cards are already being laid in councils’ favour.”

“As the Rates Cap Savings Dashboard shows, a two percent rates cap would have saved the average Auckland family $442 over the last three years, and that’s what the PM is signing away.”

“Exempting stormwater in Auckland would render a cap in the Super City meaningless. The Prime Minister needs to explain if he’s sabotaging his own Government’s policy, and if he intends to do the same for other councils across the country.”

The Taxpayers’ Union has today launched its Councillor Salary Increase Dashboard, exposing the staggering pay hikes many councillors and mayors across New Zealand are receiving while ratepayers struggle with a cost-of-living crisis.

According to the latest dashboard data, local councillors have accepted an average 9.81 percent annual adjustment to their pay, while mayors have seen an average jump of 8.53 percent. These increases dwarf the 2.7 percent inflation rate recorded during the 2025 financial year.

Taxpayers’ Union spokesperson Tory Relf said:

“While many Kiwis struggled to afford summer treats this year, our local councillors have had no such concerns, pocketing huge pay hikes while rates explode. It is a kick in the teeth for ratepayers who have seen their average rates bill rise by 8.39 percent in the last year.”

“These figures don’t even include the 'top-up' allowances mayors and councillors receive, such as phones, laptops, printers, mileage reimbursements for driving to work, and childcare allowances. The system is broken and designed to prevent pay from being tied to performance or outcomes.”

“Take Queenstown-Lakes District Council for example. Despite having the largest per-capita debt burden in the country and hitting ratepayers with a whopping 50.23 percent rates increase in just three years, in percentage terms its councillors are receiving the second-highest pay increase in the country this year, while the mayor's ranks ninth.”

“Councils must be given the legal option to turn down these increases so ratepayers can see who is actually serious about easing the pressure on households.”

The full Councillor Salary Increase Dashboard can be accessed at https://www.taxpayers.org.nz/pay_rise_dashboard.

The top 10 biggest increases in councillor pay are: 

1. Western Bay of Plenty District Council – 56.86%
2. Queenstown-Lakes District Council – 33.13%
3. Selwyn District Council – 31.03%
4. Waimakariri District Council – 26.87%
5. Porirua City Council – 26.73%
6. Waipā District Council – 25.67%
7. Whanganui District Council – 24.66%
8. Invercargill City Council – 24.29%
9. Napier City Council – 20.84%
10. Tauranga City Council – 19.28%

 The top 10 biggest increases in mayoral pay are:

1. Mackenzie District Council – 15.02%
2. Tasman District Council – 12.01%
3. Wairoa District Council – 11.58%
4. Central Otago District Council – 11.46%
5. South Wairarapa District Council – 11.39%
6. Westland District Council – 11.18%
7. Hauraki District Council – 11.04%
8. Marlborough District Council – 10.99%
9. Queenstown-Lakes District Council – 10.83%
10. Chatham Islands Council – 10.66%