Older people facing real hardship from skyrocketing rates across the South could be forced out of their homes, an advocacy group has warned.
Both Waitaki and Clutha residents are facing rates increases of about 20% and many have expressed anger and despair.
The Clutha District Council decided last week to consult on an average rates increase of 20.6% next year, up from the 18.9% it signalled in its long-term plan.
And to ensure its "financial sustainability" the Waitaki District Council decided to consult on a 19% rates hike, despite its long-term plan forecasting a 7% rise.
Oamaru homeowner Ian Ford, at present on an unemployment benefit due to ongoing health issues, said he had no idea how he was going to pay the rates increase.
"I had to drop all the insurance off my home. I’ve been trying to sell off different things like my paintings.
"I’m already behind on the power bill because the power went up and I think where is the money going to come from when I only get $400 a week," he said.
Mr Ford said the ongoing cost of living and financial stressors had contributed to his ongoing health issues and he struggled to afford to go to the doctor.
Freeman Willetts, 86, said he was not happy about the rates rise at all.
"It’s not nice I can assure you. Just being on a pension it’s not going to be easy and we’ve got our own home, too.
"I’m at the stage where you don’t want that thrown on you... things keep going up and up," he said.
Age Concern Otago chief executive Mike Williams said vulnerable older people risked being pushed into "real hardship" by the proposed rates rise.
Mr Williams said his organisation regularly heard from older residents who were already having to make "difficult choices" to manage living costs and that "careful consideration" needed to be given to what support was available for the most vulnerable.
The potential increase would be "especially challenging" for older people living on fixed "and often very limited" incomes.
Mr Williams said it was important to recognise that the impact of the proposed 19% rise "was not confined to homeowners", with "renters also affected, as rates increases will inevitably flow through to higher rents over time".
"We regularly hear from older people who are already making difficult choices to manage rising living costs, particularly relevant now with no immediate end in sight to the current fuel crisis and its anticipated downstream effects.
"Any further significant increases like this risk pushing some into real hardship.
"We think careful consideration of the impacts on some of our more vulnerable residents is essential, along with clear information about any relief or support options available."
Grey Power South Otago president Gwynneth Butler described the expected rates rise for Clutha as "a disaster".
The hike in rates — combined with escalating cost-of-living expenses across the board — was leaving older locals and their families facing "impossible choices".
"Everyday people have no control over sky-rocketing costs right across the board... and that’s leading to a feeling of hopelessness for many.
"These are people who’ve worked hard all their lives to build their homes, and are now facing selling up simply to reduce the burden of bills.
"The only positive is that this is a generation that’s faced and overcome hardships before and that’s made them extremely resourceful."
"The bottom line is the rates system does not work — and has not worked for years," Waitaki Ratepayers chairman Ray Henderson said.
"It’s an unfortunate situation."
The can had been kicked down the road creating a now "unavoidable" predicament for councillors, he said.
There was an argument there had been low rates increases over the years which had led to the situation.
Business South chief executive Mike Collins said the proposed rise, combined with other cost increases, would "certainly have an impact" on businesses, including the profitability of some firms which would "take a hit", while it could also impact on investment decisions and hiring.
Weak consumer demand and ongoing cost increases were some of the concerns shared by businesses, he said.
An improving business outlook had now been set back by recent conflict in the Middle East and its ramifications for the global economy and fuel prices, with increased rates compounding the issue, he said.
These decisions were not made lightly, Mr Collins said. He believed the council — which was dealing with ageing infrastructure and other legacy issues — understood the impact this could have on the community.
He worked with mayors across the region and this was "not a one region issue" but also a regional and national concern.
— Additional reporting Jules Chin and Richard Davison
