Tourism levy questioned

Sue and Barry Bruce believe commercial property owners are paying more than their fair share of...
Sue and Barry Bruce believe commercial property owners are paying more than their fair share of Lake Wanaka Tourism's operating costs. Photo by Mark Price.
The owners of a Wanaka rental car business are questioning the fairness of the way Lake Wanaka Tourism is funded.

Barry and Sue Bruce believe they, as owners of commercial property in Wanaka, are paying far more towards the town's tourism promotion than others in the industry who work from home.

As Resolution Holdings Ltd, Mr and Mrs Bruce have owned and operated Wanaka Inland Autos for the last 13 years.

Their rates demand from the Queenstown Lakes District Council this year includes $1321.20 for ''tourism promotion''.

However, Mr Bruce says other Wanaka tourist operators, such as fishing guides, wine tour guides and homestay providers, working from home, pay only a ''member's subscription'' of $395.

''They don't actually rent premises, don't contribute to the rates in any shape or form.''

Mr Bruce has been looking into the matter for a year and is particularly concerned at a decision to increase Lake Wanaka Tourism levies by more than 50% over the next four years.

The increase occurred after 85% of Lake Wanaka Tourism's 436 members supported it in an online survey.

The suggested increase of $102,500 per year for four years then went into the council's draft annual plan for 2014-15.

Mr Bruce says the increase would have a far bigger impact on commercial property owners than on the ''significant number'' of subscription members.

''How come they [subscription members] were given an equal opportunity to vote for a rate increase as the actual ratepayers?''

In 2013, subscriptions contributed $16,636 to Lake Wanaka Tourism and Wanaka ratepayers $625,886 - 95% of which came from a ''targeted tourism rate'' levied on commercial ratepayers.

The rate is collected by the council which passes the money on to Lake Wanaka Tourism.

Although commercial ratepayers who pay the levy are automatically members of Lake Wanaka Tourism, Mr Bruce believes the survey should have been conducted by the council, rather than Lake Wanaka Tourism.

Having Lake Wanaka Tourism run the survey was ''a bit like giving ferrets free range of the chicken farm,'' Mr Bruce said.

''There's no checks and balances with the survey being done in that way.''

Lake Wanaka Tourism general manager James Helmore said about 10% of members paid a subscription and did not contribute through the rating system.

''Back in the day when the collection mechanism was determined by the membership of the day, taking a percentage of commercial valuation was deemed the best option.

''It's certainly not without its flaws but it's one of the more robust ways of applying the funding mechanism,'' he said.

Mr Helmore was at a meeting in Auckland last week with the country's 30 other regional tourism organisations and said most of them ''looked quite enviously'' at the funding mechanism in the Queenstown Lakes district.

Mr Helmore said all members had an equal say in the running of the organisation and the board of Lake Wanaka Tourism had consulted on the rate increase through emails, media and meetings.

''It comes down to a business stepping forward to engage.

''I can't make a business complete that survey.''

Last year, Mr Bruce raised his concerns with council general manager finance Stewart Burns, who responded the funding system for Lake Wanaka Tourism was ''seen as being efficient'' from a funding perspective ''but with clear provisions regarding transparency and accountability for members''.

''The existing funding arrangements are likely to stay in place unless there is a clear signal from a majority of Lake Wanaka Tourism members calling for change.''

Mr Bruce wrote to the Ombudsman earlier this year to have the ''legality and validity'' of Lake Wanaka Tourism's funding arrangement investigated.

Principal adviser Tracey Harlen responded the Ombudsman was ''unable to assist'' because the office could not investigate a decision made by a full council.

-mark.price@odt.co.nz

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