Tag Archives: Economic Development

Dunedin-the Affordable City?

One of the main themes of the Dunedin City Council Economic Development Strategy has been the notion that Dunedin is an affordable city. That’s an admirable idea and one that every person would naturally support. However, when looking at the annual fees and charges that the City Council ask citizens pay for services it becomes clear that our affordability is rapidly being eroded away. These types of costs hurt our community and our economy.

What’s new you might ask? Well when you compare the increases in City Council fees and charges over the last 3-5 years they’re generally higher than the current rate of inflation. Remember that inflation is a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. It means that you see a decline of the purchasing power of you money. This is particularly relevant to people on medium to low incomes who through that loss of purchasing power see a decline in their standard of living.

Several areas of the Council’s fees and charges are very concerning given that the New Zealand economy has been in a period of low inflation for several years and has dropped to 0.4% this year. Some examples of increases in fees and charges being considerably greater than the rate of inflation are;

  • Burial and cremation fees have risen by 18% in the last 5 years
  • Charges to sports clubs for sports fields have risen 13.4% in 5 years, 7.5% in the last 3 years.
  • A 3.25% increase in dog registration fees every year in the last 5 years.
  • The permit for building a deck in your  house has risen 27.5% in 4 years.

Some increases may be attributable to changes in government policy and legislation but in the light of the annual 3% increase in rates heralded by the City Council each year it appears fees and charges are subsidising those capped increases. These increases in the everyday aspects of peoples lives in Dunedin is hurting our community in a wide variety of areas. Its time that we had a more transparent look at the just how affordable our city really is in lieu of these costs for everyday things in our community.

The NZ Rate of Inflation

The NZ Rate of Inflation

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