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· Representatives from two external
organisations involved in the RAS Steering Group will be presenting this
opportunity to Council: Scott Necklen, Chief Executive of Local Government
New Zealand and Ben Fahy, Head of Strategic Communications for Rewiring Aotearoa.
· Subject to final government support
and implementation, RAS will be a low-interest loan scheme which will allow
ratepayers to defer certain types of property-related expenditure. Loans will
be repaid (including accrued interest) either as a future lump sum or as an
on-going levy on the property. Initially, there will be three loan products:
(1) Rates
Postponement, addressing the risk that older ratepayers with fixed
incomes may struggle to pay Rates increases. This product will allow payment
of Rates to be deferred, to be repaid as a lump sum when the property ceases
to be the ratepayer’s primary residence (similar to Council’s
existing rates Postponement Policy).
(2) Development
Contribution Deferrals, addressing the risk that the up-front cost of
DCs/DLs is impeding development and/or encouraging land-banking. This product
will allow payment of DCs/DLs to be deferred, and repaid either as a future
lump sum (e.g., when the property is sold) or as an on-going RAS Levy
(typically for 20-30 years). It is expected that these deferrals will make up
the bulk of the RAS lending over the first few years.
(3) Property
Improvement Loans, addressing the risk that desirable improvements (such
as insulation, renewable energy, and resilience improvements) are not
undertaken due to up-front costs. It will allow such improvements to be paid
by the RAS and repaid via an on-going RAS Levy (typically over 20-30 years).
· Key advantages of the RAS are that
debt will not appear on Council balance sheets, interest charged will be
lower than bank mortgage rates and costs to the property owner can be spread
over long borrowing timeframes. It is understood that most administration
(including invoicing, separate to Rates invoices) will be done by the RAS,
and not by Council staff. This reduces the risk that the RAS charges will be
included in any rates capping legislation. However there remains a risk that
a ratepayer may perceive a RAS charge as another type of Rates charge, making
Rates appear less affordable.
· The RAS has
significantly progressed in the last year, with a final business case
delivered to central government in November 2025. A key government
decision is expected early in 2026. If approved, and with appropriate
stakeholder support, establishment of the RAS could occur within around 12
months.
· Eight councils (Auckland, Hamilton,
Tauranga, New Plymouth, Palmerston North, Hutt City, Wellington City and
Queenstown Lakes) together with LGNZ, LGFA, the Energy Efficiency and
Conservation Authority (EECA), and Rewiring Aotearoa are actively advancing
the RAS.
· Christchurch has been asked to
indicate its in principle support of the RAS as a stepping stone to potential
implementation in 2027. A follow-up Council report will explore
Council’s interests in this scheme.
· Our involvement could deliver
significant benefits for our community, such as improved mental and physical
health and lower energy bills, and would help to advance our district
greenhouse gas emission reduction targets.
· Local community groups (such as
Electrify Christchurch and the Lyttelton Energy Transition Society) are
supportive of Christchurch offering the home energy loans to the community.
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