Dunedin homeowners are likely to be waiting in vain to pay for their home-heating upgrade through their rates.
This month three local authority councils - Hawkes Bay Regional Council, Environment Canterbury and Nelson City Council - announced they would offer their residents the opportunity to pay off energy efficiency investments through their rates, as part of the government's Warm Up New Zealand: Heat Smart programme.
The Dunedin City Council (DCC) and Otago Regional Council (ORC), however, are unlikely to commit to the rates scheme.
DCC energy manager Neville Auton said the scheme could be complex to administer and there were other potentially cheaper options for home owners.
‘‘I presume a council would have to borrow money to loan to householders which they would pay back through their rates,'' Mr Auton said.
‘‘That raises questions as to whether there would be interest payments on the loans.''
Banks are offering loans to bridge the gap between the government grant for insulation and its full cost without mortgageholders having to pay additional fees.
This could be cheaper than the interest councils might have to charge, he said.
Mr Auton understood the regional council was considering the rates scheme, which, if it went ahead, would mean it was available to Dunedin householders too.
But ORC programme manager Jeff Donaldson said the scheme had been discussed at a combined ORC and district councils meeting last week and would not proceed in Otago at this stage.
‘‘We were looking at the possibility of a targeted rate to be put across the whole region,'' Mr Donaldson said.
‘‘It would have required unanimous agreement by all the district councils.
‘‘A number of the councils said they did not need to be part of it. It is unlikely to happen in the near future.''
The government hopes the $323 million Heat Smart programme will insulate 180,000 houses during four years.
New Zealand Business Council for Sustainable Development, which in November published findings of its two-year research into the issue, said the lead being shown by the three local authorities should be followed by the other 81 nationwide.
