Invercargill ratepayers financially impacted by Covid-19 would be given an opportunity to postpone rate payments — but it will cost them.
Invercargill city councillors on Tuesday approved the draft Rates Postponement and Rates Remission policies.
The changes create a new scheme to support people experiencing financial hardship as a result of pandemic, epidemic and natural disaster.
Councillors discussed whether the criteria to meet "financial hardship" should be proven with a 20% percentage income loss or by proving financial hardship.
Some thought without the percentage criteria, the process would become too subjective.
Cr Alex Crackett asked who would be responsible for the "judgement call"on what hardship was, "when it doesn’t have a quantifiable number to it".
The policy would see those successful applicants being charged interest.
Cr Biddle queried why this would be, and why it was set at 3.5%.
ICC finance services interim group manager Dave Foster said it was to stop people from deciding to apply for a postponement when they may not need to.
However, he clarified the rates interest charge would be less than if a person needed to borrow the money to pay their rates and there was no fee to put in an application.
Cr Ian Pottinger said the policy, which would now go to public consultation, would not be ready by the time rates payments were due on May 29.
Council have indicated ratepayers who had immediate concerns about their ability to pay the May rates were able to discuss concerns with staff, and indicate that they may need support.
The indication of any rates increases for the 2020-21 year would be discussed in the next few weeks.
