Proposed price increase for Lakes Environmental

The Queenstown Lakes District Council is to review its council controlled regulatory organisation’s pricing structure, QLDC regulatory and corporate general manager Roger Taylor said.

“Lakes Environmental has an operating basis that it must aim to break even with revenue needing to cover total operating costs. A reduction in consent applications has lead to the review,” Mr Taylor said.

Both resource and building consent applications had taken a significant dip, with resource consents down by 17% and building by 14%.

“The way the company is set up is very much on a user pays basis. For that reason prices were able to be reduced in 2008 when Lake Environmental took over from the then privately owned profit-making company CivicCorp,” he said.

However, Lakes Environmental had to remain financially viable.

The proposed increase in charge-out-rates ranged from 1 percent (engineering $1 increase) to 29% (Health $18 increase).

The proposed rates were at the low end of the local government sector for those activities.

“Comparatively - taking into account both neighbouring Councils and those processing similar volumes of consents - the new pricing structure remains on the low side,” Mr Taylor said.

The proposed Lakes Environmental building rate of $105 compared favourably with Tasman at $122, Christchurch $120, Wellington $135, Dunedin $95, North Shore $105, Waitakare $129 and Southland $123.

Likewise the planning rate of $111 compared well with Tasman at $122, Rodney $145, Christchurch $142, Wellington $125, Dunedin $105, North shore $130, Waitakare $134 and Southland $105.

Part of the pricing structure proposal to be considered by full Council tomorrow (Tuesday) included increasing the amount of deposits, which had not been reviewed for eight years.

There had been significant changes, namely to the Building Act 2004 and increasing complexities with the Resource Management Act.

In particular the new Building Act had applied higher standards, which in turn meant more inspections were required.

Historically the low deposit figure, which was part of the full and final payment, had caused misunderstanding and confusion, he said.

“The council has had regular experiences with members of the community who mistake the deposit for the full and final amount. A payment up front will commit people to the process and flag to them from the outset the cost involved,” Mr Taylor said.

Pending adoption the pricing structure increase would be notified on April 30 with public submissions open through until 29 May.

“The submissions on the pricing structure will be heard in conjunction with the 10-Year-Plan submissions at hearings on the 4 and 5 June,” he said.