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Perspective with Andrew Dickens: Has the rates problem really been solved?

Author: Newstalk ZB,
Publish Date: Sun, 7 Jun 2026, 4:06pm

So, I was listening to the radio and a story really jumped out at me. I thought, “Wow!”

The headline was: Porirua City Council has achieved a 0% average increase in rates. Zero percent! You can almost hear the whole country saying, “Wow - could I have that, please?”

This milestone comes alongside zero cuts to services. Double wow.

However - depending on your QV valuation - you may still see some increases to your rates. The Porirua City Council achieved a 0% average increase for non-water rates through a combination of a multi-year fiscal strategy, structural service shifts and targeted cost-cutting measures.

But there’s a clue in that sentence. When you first hear the story, you think, “Good on Porirua - it can be done.” You might also wonder why Porirua would ever consider amalgamation, especially joining the spending crazies in Wellington.

But then there’s that key phrase: non-water rates. That’s the fishhook.

Water rates have been separated out as part of Local Water Done Well. The newly established regional water entity handling Porirua’s supply, Tiaki Wai, has announced an average 12.8% increase in water charges across the Wellington region - including Porirua - for the 2026–27 financial year.

Ah, I see. So it’s 0% for everything except water… which is up 12.8%. Uh-huh.

And this was actually a detail missing in the debate about Auckland’s 7.9% rates increase because that figure also excludes Watercare’s rise in water charges - which has been announced at a further 7% on top.

I doubt very much that any council, once water rates are included, will come in under double digits in this next round.

So maybe the problem hasn’t really been solved.

I’ll admit there is greater efficiency in our councils. I’ll admit they’re watching their spending - I’ve seen it happen, including in Auckland.

But the fact remains: despite all the big PR messaging, there is no real, tangible decrease in the amount of money coming out of your wallet - or mine.

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