A group of 16 hospitality business owners directly affected by the cordon around Adams Ave and Marine
Parade sent a letter to the council asking for a rates remission, which they believed they were “legally entitled to” under the council’s rates remission policy for natural disasters and emergencies.
But Tauranga mayor Mahé Drysdale said “at this stage” no rates remission was available for those businesses. The council was still considering whether the landslide met the criteria for rates relief.
Six people camping at the Mount Maunganui Beachside Holiday Park died in the January 22 landslide, and businesses on Marine Parade had to remain closed until January 28 while recovery operations were underway.
‘We need urgency’
Beach Hut Cafe and Lital Cafe owner Michelle Craig had lost tens of thousands of dollars since the landslide and now the first instalment of her annual $25,000 rates bill was looming.
On February 3, she sent a letter to the council on behalf of 16 businesses asking for a rates remission, and requesting a response within 10 working days.
The letter made the request under the council’s rates remission policy for natural disasters and emergencies, which stated that the council “may remit all or part of any rate where a natural disaster or other type of emergency affected a rating unit’s capacity to be inhabited, used or otherwise occupied for an extended period of time”.
The council responded to her on the afternoon of the 10th working day, February 17.
Craig said the council’s delayed response disrespected the emotional stress and the financial pressure affected businesses were under.
“We need urgency, and we need immediate communication,” she said.
“We’re asking for what we’re legally entitled to under the Local Government Rating Act of 2002. In previous disasters across New Zealand, there have been mechanisms to assess and support affected businesses.”
She sent a second letter the following day, which the council had not yet responded to.
Marine Parade cafés reopened on January 28. Photo / Corey Fleming
Mayor responds
Drysdale said under the council’s rates remission policy, any natural disaster or emergency event must first be formally identified by a council resolution.
Event-specific criteria must then be set before assessing whether remission was applicable.
Drysdale said the council was still considering whether the landslide met the criteria, and did not give a date for the decision.
The due date for the current rates instalment was extended from the end of February to June 30.
Business owners had also asked for an apology from Drysdale for not communicating with them for the first five days after the landslide.
Drysdale said his immediate focus was on the rescue and recovery operation.
He said an initial meeting was held on January 27 between himself, councillors and the affected business owners.
“At this time, I acknowledged that this contact could have happened sooner and apologised on behalf of Tauranga City Council for not being in contact prior to that.”
Each of the cafes had been offered $4000 through the Tauranga Mayoral Relief Fund.
Drysdale said most of the fund had been distributed directly to businesses behind the cordon.
He recognised the sums involved were relatively small compared to the losses sustained, but said the council acted quickly and ”provided an immediate boost to help with expenses through the period the businesses were forced to be closed”.
He said the council acknowledged it had been a challenging time for businesses.
“We can assure these businesses we are doing what we can, with urgency, to advocate and provide support to those who require it.”
Mount Break Cafe owner Jana Puri said the $4000 did not even cover food waste or the cafe’s $7000 daily turnover in the peak of summer.
Mount Break Cafe owner Jana Puri. Photo / Bijou Johnson
Puri said her business needed tourists “who can actually spend money”.
As long as Mauao remained closed, Puri said businesses on Marine Parade would be struggling.
Tauranga Business Chamber chief executive Matt Cowley said some businesses were barely covering their costs, and other business owners were working for free to keep as much money in the business as possible.
“Their leases are based on strong foot traffic, but these [traffic numbers] are down significantly from this time last year.”
He said businesses used their summer surpluses to get through quieter winter trading months.
“But if trading is already at winter levels and businesses are already digging into their cash reserves, then there is anxiety for surviving through to next summer.”
Government agencies, including the Inland Revenue Department and the Ministry of Social Development, said they had been engaging with local businesses and had support systems in place.
Bijou Johnson is a multimedia journalist based in the Bay of Plenty. A passionate writer and reader, she grew up in Tauranga and developed a love for journalism while exploring various disciplines at university. She holds a Bachelor of Arts in Classical Studies from Massey University.