Queenstown businesses question 'steep' rates hike

Central Queenstown businesses face rates hikes of more than 30% to pay for two huge projects, including a controversial convention centre.

Such significant hikes - albeit for a short time - have fuelled further calls for a bed tax in the resort, as its small rating base is hit once again to pay for infrastructure sufficient to cope with more than two million tourists a year.

The Queenstown Lakes District Council wants to spend $55 million on a convention centre at the Lakeview site, above the central business district, and $27.8 million on an upgrade of the Wakatipu district's sewerage system.

Wakatipu residents will pay $51 each for the convention centre while, further away, Wanaka ratepayers will each be stung for $13.

However, the hardest-hit to pay for the two big-ticket items are businesses and accommodation providers in the resort's central business district.

A high-value CBD business already paying $97,489 this year would pay $33,739 more - a hike of 34.6% - and a high-value accommodation business paying $257,620 would pay an extra $79,339, a 30.8% rise.

Bar owner Mike Burgess said it was a significant rates hike and he questioned why ratepayers had to pay the lion's share of convention centre costs.

''I'm in favour of the convention centre. I think it's exactly what the town needs. It has to be paid for somehow, but perhaps there are alternative funding models to look at, something similar to a bed tax which has been bantered around for a number of years.

''At some stage we've got to look at how the rating base of our community can support an infrastructure that provides for more than two million tourists a year.''

Queenstown Chamber of Commerce president Charlie Phillips did not want to comment on the rates figures but said: ''It's not harmful to seek out alternative means of funding.''

Outside Sports owner John Knight said the hike was fairly steep.

He questioned why the council was pushing its own convention centre when Frankton developer Remarkables Park was intent on building its own convention centre, at no cost to the ratepayers.

Tourism Industry Association hotel sector regional chairwoman Penny Clark said the town had to upgrade its sewerage system to protect the environment.

Businesses would have to put prices up to pay for the rates hikes, she said.

''This town needs to get its act together. We've had all these meetings to make sure we look after our environment, look after our economy. Well, guess what? It costs money. So we're just going to have to accept it.''

The council's draft 10-year plan, which will be discussed by councillors on Tuesday, states the project-specific rates hike will take place between 2015 and 2018.

The decade's rating budget is for an average 2.6% increase per year, down from 4% in the 2012 plan.

david.williams@odt.co.nz

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