The Dunedin City Council has decided to continue with its
Warm Dunedin scheme for at least another year.
The scheme allows ratepayers to borrow money through the
council to insulate their homes or install fires, at an 8%
interest rate, and repay it through a targeted rate over 10
The interest rate covers the 7% interest the council has to
pay to borrow the money and 1% for administration costs.
Councillors were asked if they wanted to stop the scheme in
2014-15, run it for another year, or continue it
They voted to continue it in 2014-15, despite some concerns
about the high interest rate and whether people could really
afford it, and consult on whether to keep it during the
long-term planning process next year.
Cr Richard Thomson said it had been a good scheme that had
made 500 homes warmer so far.
It might be an expensive way for people to do their
insulation, given the high interest rate, but it might be the
only way people could do it.
It also made the city more attractive to prospective
newcomers if the houses were warmer.