18 Feb 2024

‘Shameful’: Rage at proposed rent, fees increases of 240% for charities in Tauranga

6:40 am on 18 February 2024

By Annemarie Quill of Stuff

People protest at proposals in Tauranga Council's Long Term Plan

People protest at proposals in Tauranga Council's Long-Term Plan. Photo: Supplied/Nicholas Charles Photography

Tauranga residents - including businesses, creatives, school children, a ukulele player, a medieval knight and MP Sam Uffindell - have rallied in force against "shameful" proposals by the city's non-elected commissioners to up rent by 240% at charities and not-for-profit organisations.

Those affected told Stuff that the "ludicrous" increases would be the "death knell" to essential services for vulnerable residents, particularly elderly and young people.

A former mayor of the city has dubbed the move as "shameful, undemocratic... driving out the little guys in favour of big business."

Tenants impacted include mental health and addiction services, a refuge, budgeting advice, a charity providing programmes for 3600 at-risk youth and young offenders, and an arts hub considered "a key community and economic asset" to the city.

People armed with placards, art and instruments attended a council hearing on Monday which kicked off three days of protests against the council's Long-Term Plan 2024-34.

The plan includes increased charges for boat users, sports and dead people: the cost of cremation and burial at the council crematorium and cemeteries is going up, as is playing footy, bowls and tennis.

Commissioners seemed surprised at the amount of opposition. While chair Anne Tolley tapped along to a protester's ukulele, she was tight lipped on whether she was persuaded.

"The final LTP must deliver outcomes which are in the best interests of the community as a whole... which means that some submitters may not get what they have asked for."

Barbara Dempsey, general manager Community Services, said under the draft proposed fees and charges, some organisations could receive rent increases of 200% or more, but council would review to ensure it was fair, "noting that a number of current rent levels are at a very low starting point".

Bryce Strong, chair of Men's Shed, which engages isolated men in jobs for those who can't afford tradespeople, said they would "down tools" if proposals went through.

"Council is proposing a 243% increase in our current rent - when you add in proposed OPEX charges - it's an increase of 297%. That would be the death knell. I don't know what universe they're in to think people can afford increases when we're volunteers."

He said the proposals conflicted with the Local Government Act, which stipulated councils should "promote the social, economic, environmental and cultural wellbeing of communities".

Tim Jackson, general manager of Turning Point mental health and addiction recovery service, operating for 23 years, said an increase of 240% was "not sustainable".

Turning Point's Powhakahaere, Tāne Cook, said it impacted unique needs of Māori in mental health and addictions

Psychiatrist, Marcel Hediger, trustee of community arts hub, the Incubator, said the Bay of Plenty had "significant challenges" in mental health, substance use, crime, truancy and isolation of elderly, but that access to the arts helped social cohesion in an affordable way that "few other things can".

Incubator director Simone Anderson said charges were "unrealistic" and put "the future of a vibrant city at real risk" by making vital services inaccessible.

Cherie Anderson, teacher at Northern Health School, whose students are too unwell mentally or physically to attend school, implored the council to consider social capital in the city, not just revenue.

Tauranga MP Sam Uffindell attended the hearing on Monday in support of residents, and told Stuff he urged council to listen.

"Proposed significant rent and OPEX increases are unpayable for many residents and will force their closure," he said.

"Community service providers and the artistic community in the Historic Village are not just nice-to-haves, they are an essential part of Tauranga."

Uffindell has been outspoken on previous commissioner decisions, referring to them as a "wrecking ball" to the city.

Four non-elected Commissioners, chaired by former National MP Anne Tolley, have been running the city since 2021, when they were appointed to replace the dysfunctional administration led by Tenby Powell.

Prime Minister Christopher Luxon campaigned on "restoring democracy" in Tauranga, and that it was National's view that elections should have been held in 2022.

Former Tauranga mayor Greg Brownless told Stuff the proposed increases were "ridiculous", "shameful" and "undemocratic", while at the same time the plan mentioned the possibility of incentivising developers.

"They want money from the little guys who battle to do good with ridiculous increases that will drive them out of town, and at the same time seem keen to hand out cash to developers."

The long-term plan includes a section: "will incentives help us grow our city?", referring to Hamilton, whose council introduced cash incentives to property developers.

"We're exploring an option to attract more development… similar to what other growth cities such as Hamilton have implemented, we're wanting to provide incentives to attract more public and private investment in new development."

Brownless said Minister of Local Government Simeon Brown should not allow commissioners to make these decisions given elections this year.

"Commissioners are attempting to entrench decisions and contracts for which they have no community mandate and which will unfairly bind a new council, to be decided by voters in July."

Anne Tolley said the Commission's terms of reference task it with making decisions on behalf of the community.

"We've been asked to redress the failings of past councils, with a focus on addressing a longstanding underinvestment in infrastructure and community facilities," she said.

Without a directive from Simeon Brown to delay Tauranga's planning until after elections in July, the final plan, and council fees and charges, will be adopted in April.

This story was originally published by Stuff.