Accommodation NZ is deeply disappointed that Local Government New Zealand (LGNZ) has applied for and been granted leave to join Auckland Council's appeal over the legality of the Accommodation Providers Targeted Rate.
The issue has been ongoing for five years but only now, just weeks out from the Supreme Court hearing, has LGNZ decided to be a part of it.
"There is clearly more to this last-ditch effort to support Auckland Council's bid to overturn the Court of Appeal's ruling that threw out the targeted rate," said Troy Clarry.
"We do not believe LGNZ will add anything new to the case, which the council has had five years to argue and spent well over one million dollars of ratepayer money and countless hours of officials' time – and climbing – while it's being forced to make massive budget cuts."
"The facts of the case remain the same."
As the Court of Appeal found in overturning the High Court ruling, the council did not consider that the accommodation sector receives less than nine percent of the tourism income while paying 100 percent of the funding. There were minimal benefits for operators, and the court acknowledged that.
Additionally, the council inaccurately assumed accommodation providers could pass on that cost, which they genuinely have no capacity or capability to do so.
"This is more ratepayer money to support an appeal Aucklanders were already paying for, and they should be asking why their money is being spent this way for no extra benefit."
Accommodation NZ remains committed to supporting its Auckland members while advocating for a fair funding model for tourism that is well thought-out and developed with the involvement of the industry.
While the focus has been on this case and how it involves accommodation ratepayers, there is now a much more significant concern. This move by LGNZ suggests it has a bigger target – the application of targeted rates and the ability of councils across New Zealand to use them to raise money for projects that do not benefit the targeted ratepayers.
"We suspect this indicates other councils are waiting to implement the same targeted rates."
"And they may not be just an accommodation-specific. LGNZ's involvement suggests they are advocating for the ability to use the targeted rate function to target any small group and charge what they like with no direct benefits needing to be demonstrated."
The Court of Appeal will hear the case on July 20-21.
